Investing in Mexico's Mining Future: Opportunities and Risks

Despite being a global mining hub and a top producer of 17 minerals, Mexico’s mining sector continues to struggle with investment challenges. Attracting capital remains a major concern, as policy uncertainty, permitting delays, and the ongoing suspension of new mining concessions, initiated under the López Obrador administration, continue to stall projects. While the new government signals a more open approach, companies remain in limbo, awaiting clearer regulations and improved conditions for exploration and investment.

Recent mergers and acquisitions, such as Coeur Mining’s investment in Sonora and Gatos Silver’s US$800 million transaction, signal renewed confidence in the sector, according to John-Mark Staude, CEO, Riverside Resources. However, investors continue to demand clearer policies and streamlined permitting and concessions to facilitate long-term commitments.

"From a foreign investment standpoint, transparency and predictable timelines are paramount. We have seen positive rhetoric, but we need tangible actions," said Dan Dickson, CEO of Endeavour Silver Corp. The sentiment was echoed by other experts, with executives highlighting the need for a more efficient regulatory framework to accelerate investment.

“We must not forget that Mexico has slipped in global mining rankings, dropping from 37th to 74th place,” said Marcio Fonseca, President and COO, GR Silver Mining. “The country has lost close to 66% of foreign investments between 2022 and 2023.” In the latest Fraser Institute mining survey, Mexico dropped in ranking, due to the impact of regulatory changes, permitting delays, and ongoing policy uncertainty on industry performance. As a result, CAMIMEX estimates a US$1.2 billion loss in 2024, down from US$5 billion in 2024.

Economic realities will likely push the new administration toward greater engagement with the private sector, according to Javier Reyes, Founder, Luca Mining Corp. “The government cannot afford another six years of economic stagnation in mining. There is no financial cushion left to continue with restrictive policies,” he stated.

While the Sheinbaum administration is seen as more open to investment and regulatory discussions, recent increases in mining rights, from 7.5% to 8.5% and from 0.5% to 1.0%, could jeopardize more than US$6.9 billion in new project investments over the next two years, according to CAMIMEX.

Despite past setbacks, Daniel Linsker, Partner and Regional Director for Mexico, Central America, and the Caribbean at Control Risks noted the current conditions as a strategic buying opportunity. With many projects undervalued due to past uncertainty, companies that take a long-term view could benefit from acquiring assets at attractive prices. “Risk and opportunity must be balanced. The key is whether Mexico can provide the stability and legal certainty that investors need to move forward,” he said.