181 Mining Companies Have Left Mexico: CAMIMEX

The political uncertainty created by the current administration has led some companies to leave the country as their projects are threatened, with no clarity over whether new concessions will be approved or not in the short term. 

According to José Gutiérrez, President, CAMIMEX, there are over 822 projects that have been delayed due to a lack of permits. Gutiérrez said that since President López Obrador took office, permit granting has slowed down as a consequence of changes in key Ministries. "We were at advanced stages in negotiations with the Ministries of Economy (SE) and Environment and Natural Resources (SEMARNAT). I do not doubt that if this negative to grant new concessions continues, these numbers (delays) will be higher in the coming years," Gutiérrez said. 

Gutiérrez said that it is worrying that 181 foreign mining companies left the country in 2021, especially since mining is among Mexico's five main sources of foreign currency. He explained that these companies were mainly focused on exploration, but the stop in concession granting eventually forced them to withdraw their capital. "We have been seeking to establish contact with the new Minister of Economy to follow up with the strategy we developed with the former minister. We hope these negotiations will be positive to stop this halt in concessions granting," Gutiérrez added. 

Luis Vázquez, President, AIMMGM, said that there are over 25 major projects that have stopped because they are waiting to receive their respective concessions for exploration and exploitation. Vázquez said that due to this situation, Mexico is losing the opportunity to create 30 percent more jobs, while missing out on a 0.5 increase to the 2.5 percent contribution of the mining industry to the national GDP. “We have another 10 more projects that are under development that should not be stopped because they have an advanced investment that must continue,” Vázquez added. 

According to Vázquez, the legacy that this government will leave for the mining industry is a lack of awareness of the benefits the industry brings to the country. It is expected that between 2012 and 2022, the sector accumulates a contraction of 31 percent in its investment rate, which in the long term will affect other industries in Mexico. “There is a very serious issue that the industrial sector has not perceived yet. If the government does not grant concessions, the raw materials used by the automotive and the household appliances industries could become scarce, which will impact in their production,” said Armando Alatorre, President, CIMMGM.