Government Proclaims That Mexico is a Global Mining Leader

Mexico houses four of the most important mining projects in the world, making the country a key mining jurisdiction. In addition, the country continues to rank among the world's Top 10 producers of 17 minerals. The position of the country is expected to improve as more projects continue to be developed, increasing employment, production and regional well-being.

According to the 2021 Mining Statistical Manual, created by the Extractive Activities Coordination Unit of the Federal Government's Ministry of Economy, Mexico is a world leader in mining, as it has four projects on the list of the nine most important projects in the world. These mines are operated by Grupo México, Peñoles, Fresnillo, Gatos Silver and Dowa Mining.

The Minister of Economy, Tatiana Clouthier, highlighted that the mining sector contributed 8.6 percent of the industrial GDP and 2.5 percent of the National GDP in 2021. In that year, the value of mining-metallurgical production was MX$334.7 billion (US$16.65 billion), increasing 19 percent compared to 2020. In addition, this year the value is expected to increase due to the start-up of new projects such as Juanicipio of MAG Silver and Fresnillo.

Recently, CAMIMEX reported that mining companies in Mexico plan to invest around US$5.5 billion in 2022, 15.2 percent more than the investment in 2021. However, the sector has not yet managed to come close to its record figure of US$8.04 billion in 2012. Experts argue that investment issues have not only been caused by inflation, as regulatory changes, the government’s opposition to mining and increased insecurity concerns depress investor confidence further.

Nevertheless, experts recognized that despite the uncertainty, the Mexican mining sector will continue to grow and remain relevant internationally. “Even though the government has changed the mining law, the country remains more stable than others. However, the changes in mining legislation are something happening in other Latin American countries. Moreover, Mexico has several characteristics that make it a very attractive jurisdiction. First, due to its geology, the country has been a major producer of key metals. Second, it has a well-established mining industry and legislation. Third, people have the necessary skills to construct and operate a mine,” said Adam Webb, Director of Mine Supply, Metals Focus.

In addition, many Mexican states such as Guerrero and Morelos are already growing in relevance. Morelos is expected to receive US$500 million over the next 10 years due to the Esperanza Silver project, which is also expected to generate 8,000 direct and indirect jobs.