CAMIMEX Forecasts US$11 billion Investment From 2022 to 2024
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CAMIMEX Forecasts US$11 billion Investment From 2022 to 2024

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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Thu, 12/15/2022 - 11:07

The Mexican Mining Chamber (CAMIMEX) estimates that investment in the mining sector will surpass US$17.5 billion during the period from 2022 to 2024. 

According to José Jaime Gutiérrez, President of CAMIMEX, the investment forecast for 2022 is more than US$5.5 billion. For 2023 and 2024, without specifying the amount per year, his estimation stands at US$11 billion. 

CAMIMEX reported that in 2021, investment exceeded US$4.8 billion. The largest investment recorded during the past years was in 2018 with almost US$4.9 billion. 

In the past decade, the highest amount of investment was US$8 billion in 2012, boosted by high metals prices. The lowest investment rate stood at US$3.5 billion in 2020 due to the COVID-19 pandemic. 

Information from the Ministry of Economy indicates that Foreign Direct Investment (FDI) in mining registered the best year in 2013 with around US$5.7 billion, followed by 2021 with around US$4.8 billion and 2008 with US$4.5 billion. 

CAMIMEX reported that Mexico’s FDI in the mining sector fell 55.9 percent year-over-year in the first nine months of 2022. The chamber stressed that if the investment continues to follow this downward trend, the industry’s FDI will be lower than expected for this year.

From January to September 2022, the FDI totaled US$1.53 billion, less than the US$3.47 billion captured in the same period in 2021, reported the Ministry of Economy. CAMIMEX highlighted that investment would fall around 15 percent, dropping from US$4.8 billion in 2021 to US$4 billion in 2023.

Some experts associate the decrease in FDI with a challenging international investment environment, but others argue that the federal government's stance toward mining is also scaring away investors, particularly with the administration’s decision not to grant new concessions for mining projects. According to CAMIMEX, the policy resulted in 181 foreign companies leaving the country in 2021 and 822 projects delayed because of missing permits.

The outlook remains uncertain in the short term. However, mining leaders hope that the new Minister of Economy, Raquel Buenrostro, will be able to put an end to the government’s policy of withholding concessions. Karen Flores, Director, CAMIMEX, stressed that new proposals are being prepared for the new minister to promote an industrial plan that benefits mining activities. Currently, the mining sector contributes 6.7 percent to the country’s GDP. Flores highlighted that if the plan is embraced by the ministry, its contribution could be significantly higher.

Photo by:   Vladimir Patkachakov

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