News Article

Clouthier Emphasizes Mining Industry's Importance at MMF2022 ECHO

By Karin Dilge | Wed, 07/06/2022 - 10:00

Mexico’s Minister of Economy, Tatiana Clouthier, participated in the Mexico Mining Forum 2022 ECHO, which takes place from July 6 to July 8. Clouthier said she is pleased to greet all the public and private leaders of the mining industry to discuss the state of the industry and network during the event.

The mining sector is a fundamental pillar of the Mexican economy, contributing 2.3 percent of the national GDP and 8.1 percent of the industrial GDP. Moreover, Clouthier has highlighted the international importance of Mexico as a mining jurisdiction and a leading producer of silver, as well as an important producer of other precious and industrial metals.

Recently, the Silver Institute released its Silver Survey 2022, where Mexico ranked as the largest silver producer in the world for 2021. In addition, 2022’s global silver production is expected to grow steadily and reach pre-pandemic levels thanks to newly developing projects.

Mexico produces nearly 25 percent of the global silver supply and is expected to produce over 212Moz in 2022. In 2021, production totaled 196.7Moz. “The biggest increase is expected to come in Mexico, driven by the ramp-up of new and recently commissioned projects, alongside rising production from several established mines,” the report stated.

In addition, Clouthier mentioned that the Mexican Geological Survey (SGM) continues to generate geological information infrastructure, carrying out exploration works to the benefit of the sector. According to the minister, Mexico is an attractive country for private, national and foreign investment, this is reflected in Mexico’s positioning as the fifth country in the world with the highest investment in exploration and the preferred destination in Latin America.

Nevertheless, amid political and legal uncertainty and higher metal prices, the Ministry of Economy (SE) reported that Foreign Direct Investment (FDI) in the mining sector plummeted year-over-year during 1Q22. The sector received over US$610 million during 1Q22, which is 59 percent lower than the amount registered in 1Q221, which stood at US$1.49 billion. The drop in investment is partly caused by the high performance of the sector in 2021.

During this year, mining companies restarted the investments that were paused due to the COVID-19 pandemic in 2020, when the total FDI reached only US$294 million in total. In 2021, the sector received $2.8 billion in FDI, an increase of 861 percent when compared to 2020.

Furthermore, Clouthier pointed out that mining is one of the most regulated economic sectors, as the government protects the nation’s ownership of resources via the constant supervision of concessions carried out by the General Directorate of Mines of SE. Similarly, the Minister of Economy is working to ensure adequate regulation facilitates mining companies’ operations, fostering sustainable mining and prioritizing the rights of workers.

SE has been working with the UN to create a pilot plan which promotes sustainable actions in the extractive industries, said Clouthier. Collaboration with the Pacific Alliance would be equally essential for Mexico. The Minister of Economy finished her message by expressing that by working hand by hand with all sectors, clear objectives can be set and achieved.

Karin Dilge Karin Dilge Journalist and Industry Analyst