Government Proposes Increases in Mining Duties for 2025

The Mexican government has proposed increasing the Special Mining Duty from 7.5% to 8.5% and the Extraordinary Mining Duty from 0.5% to 1% as part of the Economic Package for Fiscal Year 2025, effective Jan. 1, 2025. In other news, mining activity increased in October, driven by higher drilling results and financing, with S&P Global Market Intelligence reporting a 45% rise in the Pipeline Activity Index (PAI) from September. However, Mexico's concession halt continues to limit growth.

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FY25 Economic Package: Initiative to Reform Federal Duties Law

On Nov. 15, 2024, the Minister of Finance delivered to the Chamber of Deputies the Economic Package for the Fiscal Year 2025, which includes, among other documents, the Initiative With Draft Decree Reforming, Adding and Repealing Various Provisions of the Federal Duties Law.

Elevating Precision in Mining Exploration in Uncertain Conditions

Harry Chang Yong, General Manager, Core Tech, notes that the adoption of new technologies is crucial for navigating the challenges in the mining sector. Despite regulatory hurdles in Mexico, he emphasizes the importance of innovation in improving operational precision. Chang Yong highlights the gradual shift from traditional methods to more advanced tools, such as gyroscopes, which offer superior accuracy in measuring the orientation and positioning of drilling equipment during exploration. He also discusses the company’s plans to introduce new technologies for hydrogeological studies, particularly for the lithium sector.

The Perfect Mine, From the Environmental Perspective

Adrian Juarez, CEO, CTA Consultoría y Tecnología Ambiental, stresses that mining operations face significant public scrutiny due to environmental and social concerns, despite the essential role they play in providing products necessary for modern life. He points out that while agriculture, which also operates in rural areas, faces fewer criticisms regarding environmental damage or taxes, mining is often criticized for its impact on the landscape and local communities. 

Steel Sector’s GDP Contracts 44.8% in 3Q24

Mexico’s steel industry GDP recorded a decline of 44.8% in 3Q24, marking the largest drop in the history of the country. The fall was partly due to a blockade of ArcelorMittal facilities by the Mining Union led by Napoleón Gómez Urrutia.

Alamos Mitigating Risks Through Underground Expansion

Luis Chávez, Senior Vice President for Mexico, Alamos Gold, notes that the acquisition of Argonaut Gold in July 2024 aims to optimize operations and reduce costs. While the company focuses on opportunities in Canada due to Mexico’s political climate, it remains committed to its long-term operations in Mexico. Chávez also highlights the company’s resilience amid political uncertainty and the potential impact of a ban on open-pit mining, stressing the need for collaboration between the mining sector and government to foster growth and sustainability.

Fluid Control Solutions Maximize Compliance, Minimize Downtime

Héctor Domínguez, General Manager, SAMSON, notes that over the past 30 years, customer expectations have shifted, particularly in the areas of environmental responsibility and social governance. In response, the company has adjusted its operations to meet stricter regulatory standards and evolving industry practices, while adapting to a more digital approach to client relations.

Mapping Mexico's Minerals: SGM's Vital Role

Flor de María Harp, Director General, SGM, discusses the organization’s focus on exploring and identifying critical minerals essential for the energy transition. With growing global demand for minerals like lithium, cobalt, and nickel, the SGM plays a key role in mapping and assessing these resources across Mexico, contributing to the country's position in the global supply chain for green technologies.

Mining Sector Thrives Globally; Mexico Faces Setbacks

The mining sector reported increased activity in October, supported by higher drilling results and financing levels, according to S&P Global Market Intelligence. The PAI, which monitors industry trends, rose by 45% compared to September, reaching its highest level in a year, though it remained 4.9% below October 2023 levels. While the sector experienced growth globally, Mexico's ongoing halt of concessions continues to hinder activity.