Driving Prosperity: Mining’s Contribution to Mexico

Mining in Mexico goes beyond resource extraction. It is a key part of the country’s economic structure, supporting technological development and social progress. The government, through Plan México, recognizes mining’s strategic importance and highlights its environmental responsibilities, social impact, and governance framework. However, challenges remain that need to be addressed to maximize the sector’s potential.

According to CAMIMEX, the mining industry is a cornerstone of Mexico’s economy, representing 4.73% to the national GDP. The industry drives local and regional economic activity, generating an estimated MX$269 billion (US$15 billion) in annual economic spillover, in addition to paying over MX$362 billion in taxes over the past nine years. As the country’s sixth-largest foreign exchange earner, mining supports economic stability and regional development.

Under Claudia Sheinbaum’s new government and Plan México, mining is recognized as a strategic sector, essential to the country’s economic growth and industrial diversification. It supplies critical raw materials vital to more than 123 sectors, including automotive manufacturing, renewable energy, pharmaceuticals, steel production, construction, and agriculture. This role in supply chains promotes increased domestic content in Mexican products and supports the core goal of Plan México to reduce reliance on imports.

Marcelo Ebrard, Mexico’s Minister of Economy, emphasized that mining self-sufficiency is vital given the current global geopolitical context. “Our obligation as authorities is to be prepared,  not reactive, but proactive, to prevent vulnerabilities and seize opportunities to ensure our country’s resilience.” Ebrard highlighted that Plan México clearly prioritizes an increase in mineral production to safeguard the nation’s energy and self-sufficiency, reinforcing minerals as the foundation of Mexico’s economy.

Industry leaders stress that Mexico’s future growth will depend on unlocking mining’s full potential. “The country needs economic development, and mining still has much potential to be explored. Even projects that are already in advanced stages will contribute to this economic development, to families, and to development through infrastructure,” said Octavio Alvídrez, CEO, Fresnillo, at Mexico Mining Forum 2025. He added that it is encouraging to see the sector’s openness and dialog with the federal administration, noting that companies are also doing their part “not just to align (because we are already aligned) but to be able to generate more and deliver more from mining, knowing all the benefits it brings.”

Environmental Responsibility: Advancing Sustainable and Low-Impact Mining

Mexico’s mining sector not only ranks among the world’s top producers of 17 critical minerals, including lithium, copper, silver, zinc, and molybdenum, but also plays a pivotal role in enabling development for emerging technologies like electric vehicles and renewable energy infrastructure. This positions Mexico as a strategic hub for the global energy transition and nearshoring opportunities.

Recognizing its environmental footprint, the sector is actively pursuing sustainability goals that align with the shift to a low-carbon economy.  In 2023, 35% of mining’s energy consumption is sourced from renewables such as wind (14.1%), hydro (1.3%), solar (0.4%), and renewable  cogeneration (9.7%), with targets to raise this share to 46% by 2030. Responsible water use is also prioritized, with mining representing only 0.27% of authorized water consumption nationally, recycling approximately 70% of its water through advanced treatment systems.

For companies like Fresnillo, sustainability must balance community benefits with long-term business value. “To truly be sustainable in the future, in the medium and long term, efforts must yield results for the company,” said Alvídrez. He highlighted the importance of materiality assessments to identify regional needs, as well as forming alliances with organizations so that “through these alliances, benefits for the communities can be multiplied.”

Concrete examples of these efforts are already visible in the Fresnillo district, where the company operates three of its six mines. Alvídrez described how Fresnillo first invested in building a wastewater treatment plant and later took on two additional plants handed over by the municipality. “We operate them, and in this way we can supply all the needs of our mines with treated water,” he said. At the same time, the company channels mine water into federal waterways, supporting local agriculture. Recently, Fresnillo also inaugurated a water purification plant that now supplies around 30% of the population’s needs. For Alvídrez, this demonstrates “how sustainability and benefits for the communities are also aligned with an economic benefit for the company.”

In addition to these efforts, the mining sector has made significant environmental investments, including the reforestation of 2,355ha in 2023 and a total of 14,300ha over the past five years. It also contributes to the protection of 25 species of flora and fauna. Thanks to advanced technology and improved practices, restoration work on mining sites has been successful, with some areas, such as the social and environmental closure of Minera San Xavier in San Luis de Potosi, being rehabilitated to the point that no trace of mining activity remains.

Social Contributions: Community Development, Inclusion 

Mining plays a crucial role in driving social development within local communities by promoting advances in education, healthcare, and infrastructure. 

According to data from Mexico’s National Council for the Evaluation of Social Development Policy (CONEVAL), communities connected to mining have experienced a 45% reduction in social marginalization between 2000 and 2020, shifting from medium to very low levels of social lag. Educational attainment in these areas has also seen progress, with the percentage of individuals lacking basic education decreasing from 74% to 45%. Additionally, healthcare coverage has expanded, and housing conditions, including access to electricity, have improved compared to non-mining regions, underscoring the mining sector’s positive social impact.

In remote areas, the mining industry has also become a crucial source of employment, providing over 416,000 direct jobs and an estimated 2.5 million indirect jobs nationwide. Wages in the sector stand well above the national average, 33% higher overall, and 62% higher in metallic mining, supporting quality employment and regional stability. “Mining contributes to GDP and to quality jobs located in remote areas of this country, where mining not only acts as the main driver of economic activity but also, in many cases, as an agent for rebuilding the social fabric by providing opportunities for decent employment,” CAMIMEX Director General Karen Flores explained.

Beyond employment, companies have developed structured community investment programs to extend benefits directly to local residents. Faysal Rodríguez, Senior Vice President Mexico, Torex Gold, pointed out that the company operates “participatory community development agreements, where we make investments through committees that are formed within the communities.” These agreements channel around US$5 million annually into projects such as education infrastructure, school rehabilitation, medical clinics, and hospitals. According to Rodríguez, these contributions are only possible because “results come from disciplined operations, both operationally and financially. Otherwise, there would not be the conditions for investment in social matters.”

On the inclusion front, women’s participation in mining has steadily increased, accounting for nearly 18% of the workforce in 2023, with a total of 74,529 women employed. Mining companies invested MX$618.1 million in training and education programs to enhance the skills of all employees, leading to an average schooling level of 13.1 years among workers, but three years higher than the national average.

Beyond training, health and safety remain top priorities, with MX$6.063 billion invested in 2023 in programs focused on workplace safety, equipment modernization, and accident prevention. Although mining carries inherent occupational risks, companies affiliated with CAMIMEX report accident rates below the national average at 1.33 versus 1.83. The sector remains committed to its ambitious goal of further reducing incidents, striving toward zero accidents.

Governance and Transparency: Regulatory Framework, Accountability

Mining is among the most regulated industries in Mexico, governed by a comprehensive legal framework that ensures environmental protection, occupational safety, fiscal responsibility, and social accountability. Art. 27 of the Constitution establishes state ownership of mineral resources, which are exploited under government-issued concessions and regulated through more than 27 federal laws, official standards, and specific operational requirements covering surface access, handling of substances and explosives, fiscal levies, and special regulations. Mines face an average of 4,000 compliance obligations.

From an international perspective, companies welcome dialogue with the administration on regulatory reforms but emphasize the need for clarity and alignment with global standards. “Many of those changes are absolutely aligned with our philosophy as a company, and frankly, aligned with international standards, and so we welcome the opportunity to work with the administration to advance those changes,” Jason Simpson, President and CEO, Orla Mining. At the same time, he cautioned that business conditions must remain suitable to attract investment. “The two things that are important to keep in mind are that the regulatory changes are clear to the international markets, and second that they are followed.”

Transparency initiatives such as Mexico’s participation in the Extractive Industries Transparency Initiative (EITI) reinforce the sector’s adherence to international standards. Throughout 2023, working groups advanced strategies to maintain compliance, including preparing national reports, addressing previous validation observations, and planning future validations to uphold Mexico’s position in global transparency efforts.

Industry leaders note that good governance is not only about compliance but also about creating conditions for greater investment. As Rodríguez explained, “mining goes where no other industry goes. Without mining, many communities would be destined to live under a quality of life very different from the one they currently have.” He also stressed that accountability requires specificity: “we should put a name and surname to the companies that are not complying… we need to see who is paying low wages, who is not complying with environmental regulation, who is not generating sustainable conditions in the communities, who is not investing enough. And that is where we will begin to build different aspects.”