Competitiveness of the Mexican Mining IndustryWed, 02/04/2015 - 17:50
Mario Cantu greeted the audience on behalf of the Minister of Economy, Idelfonso Guajardo, and wished Mexico Mining Review success on its release. Speaking about the advantages of Mexico’s business environment, Cantu stated that the competitiveness of the Mexican mining industry was related to the governance of Mexico’s mining resources, and the detonation of the country’s present and future mining potential. This is also linked to Mexico’s potential to attract foreign investment, which in 2012-2014 was only below Chile and Peru in Latin America, according to the Fraser Institute and 18th out of 122 jurisdictions worldwide. Among the factors that affect investment, Mexican regulations ranked well, although these need to be standardized to help the sector thrive at the lowest cost possible. Mexico also ranked higher than most Latin American countries when it came to geological data availability. However, a lack of sophisticated fiscal schemes and security harm Mexico’s investment attractiveness.
Cantu then moved on to the governance of mining resources in Mexico. He stated that, in terms of social responsibility, all companies must always consider the integration, exploration, and tailings dams, while respecting the communities who own the land. These are aspects that the mining sector must see as sacrosanct as it will guarantee its future and ensure that how steady jobs are created.
Regarding fiscal legislation, Cantu said that Mexico has seen preliminary results in terms of collection. Prior to the new law in 2013, Mexico was the only major mining jurisdiction that was not providing royalties. Furthermore, the money collected from the royalties will go to the Fund for Sustainable Regional Development in Mining Municipalities. This will ensure that revenues are evenly distributed among mining municipalities in mining states. In the same vein, Cantu spoke about the Mining Development Program which sets precise indicators to audit the development of the sector. These targets were not reached in 2015 but SMEs will receive more help starting in 2015 so that these targets will be met.