The controversial electricity reforms of the Mexican government’s electricity law include changes to power sector rules to favor state-run utility CFE, sidelining private producers and renewables projects.

The changes allow Mexican authorities to unilaterally cancel or modify self-supply permits that enable private players to purchase cheaper and cleaner energy directly from private producers.

While the reform has been suspended by a federal court pending a series of appeals, the issue will likely be decided by the supreme court.

Fresnillo — Mexico’s top gold and silver producer — confirmed it is planning legal action to defend its right to source cleaner and cheaper electricity for its operations, amid plans to meet 75% of its power needs from renewables.

Now c has outlined concerns over political challenges standing in the way of its carbon reduction goals.

“As we move to net zero… we are going to rely upon energy coming from renewables,” Newmont CEO Tom said.

“We are already seeing examples in some of the jurisdictions in which we operate where governments are supporting state-owned enterprises, which aren’t the most energy efficient sources of [power] and preventing renewables coming into the system.”

While the CEO did not mention Mexico, the country’s reforms are aimed at supporting state-owned CFE, while restricting access to the grid for renewable energy projects.

The company plans to use its political clout to push for changes, Palmer added.

“That’s going to require us to engage with these governments, to collaborate with these governments and to support the move to renewables,” he said.

Canada’s small business, export promotion and international trade minister Mary Ng warned the reforms could have a negative impact on Canadian investments, particularly in mining.

The reforms establish a hierarchy of dispatch placing CFE generation at the top, rewrite the rules for clean energy licenses and for self-supply contracts and remove legacy “basic supply” contracts, among other changes.

The reforms are also facing challenges by electricity industry players and Mexican opposition senators.