Ensuring Sustainability in the New Wave of Mexican Mines

Driven by global demand for energy transition metals like silver and copper, growth-focused firms face a dual pressure: the race to enter production swiftly and the need to build sustainable, long-term operations. For 2025’s miners, success is no longer measured solely in ounces poured or tons moved; it is defined by a strategic pathway that embeds financial, environmental, and operational sustainability into the foundation of projects.

A primary decision for companies advancing projects is the allocation of resources to pre-production activities. This includes geological modeling, metallurgical testing, and community engagement. Experts stress that under-investment in this stage can create long-term risks; an inaccurate resource model may affect financial viability, while inefficient metallurgy can impact operational profitability.  

Furthermore, the inability to establish agreements with local communities is considered a significant non-geological project risk, as failing to obtain social license to operate could mean the impossibility of operating a mining project. Experts stress that the ability to make people understand the project's scope, timeline, and benefits, and have a say in how it is implemented, helps differentiate responsible mining from informal operations. Furthermore, a credible and data-supported plan for future scalability is a critical component for showcasing a project's long-term potential. “Trust is not gained overnight, and it typically comes from things done for communities as projects progress and scale; they go hand in hand,” says Ian Graham, President, Oroco Resource. 

Hernando Rueda, Vice President of Operations Mexico, Vizsla Silver, notes that organizational structures must be designed with a big-picture mindset in terms of caring for both the company's employees and the community. 

Given market volatility and Mexico's evolving regulatory landscape, a component of investment pitches for these projects is a focus on operational and financial resilience. For investors, this often means demonstrating a low all-in sustaining cost (AISC) profile that can withstand commodity price fluctuations. “Long-term success will be measured by how we balance sustainability, profitability, and regulations,” says Rubén Alvidrez, Project Director and Board Member, Luca Mining.

An ESG framework is also a key part of this presentation, especially amid increased competition for capital across all sectors. ESG performance is increasingly used by investors to assess operational management and long-term risk, with many prioritizing projects that meet high environmental standards. An Accenture survey found that 59% of investors expect miners to lead decarbonization efforts, while 63% would divest from or avoid companies that fail to meet those targets. 

Furthermore, according to Carlos Silva, COO, Guanajuato Silver, companies need to have credibility in terms of growth and cash flow generation for stakeholders, demonstrate social development for the community, and comply with laws for the government. "The first thing that must be done once we know exploration is going to happen is to work very closely on social matters, because this will provide us with support when dealing with all authorities across a project life cycle,” Silva added. 

The criteria for supplier selection are evolving from a primary focus on upfront cost to include factors related to long-term value and operational support, as well as their social and environmental footprint. Key considerations now include a supplier's ability to provide on-the-ground technical support to minimize downtime, which is particularly important for remote operations. Long-term supplier relationships are often defined by an alignment on safety, efficiency, and sustainability standards, shifting the dynamic from a transaction to an operational collaboration. Rueda notes that clusters can play a relevant role, as they map trusted suppliers and help to develop new ones to meet the industry’s needs.

The path from a developing operation to a larger project is often guided by a phased approach to expansion. This blueprint was used by companies like Guanajuato Silver. The first phase focuses on achieving stable, cash-flow positive production, such as its strategy of processing low-cost, above-ground stockpiles at the Pinguico project in Guanajuato. A subsequent decision often involves reinvesting that cash flow into brownfield exploration, exploring near the existing mine, to expand the resource and extend the mine life. 

The pathway to production in modern mining is no longer a linear process. To stand out as responsible investments, companies must align with modern investor expectations on ESG and build a foundation for scalable, long-term growth. The companies that successfully navigate this landscape will do more than just bring new production online. They will create a positive spillover effect in the communities where they operate, while also providing the critical minerals essential for global industrialization and the race toward the net-zero goal.