Mexican Mining Sector Reached US$2.9 Billion FDI in 3Q23

FDI into the Mexican mining sector reached a substantial figure, amounting to US$2.9 billion during the first three quarters of 2023. This represents the highest recorded FDI for a similar period since the peak observed in 2013. This noteworthy development is occurring amid increasing uncertainties regarding the future of exploration and within an environment where no new mining concessions are being granted.

Total FDI in Mexico amounted to US$32.9 billion as of 3Q23, marking a significant 30% increase against the US$25.2 billion recorded in the same period of 2022. Notably, the manufacturing sector emerged as the primary recipient of FDI, attracting US$17.5 billion, constituting 53% of the total FDI. Following manufacturing, the financial services sector secured US$7.2 billion, representing 22%, and the mining sector received US$2.9 billion, accounting for 9% of the total FDI, as noted by the Ministry of Economy (SE).

The current investment of US$2.9 billion represents a substantial increase of 123% when compared to the US$1.3 billion recorded between January and September 2022. Additionally, it is 11.5% higher than the US$2.6 billion registered during the same period in 2021. However, the figure is still 9.4% below the peak registered in 2013.

Historical data indicates that a significant portion of FDI comes from Canada. As outlined in CAMIMEX's Annual Report for 2023, the breakdown of mining investments in 2022 reveals that 53.8% of the investments were contributed by Mexican CAMIMEX members, while 32.7% originated from Canadian members. The United States accounted for 7% of the investments, while the remaining 6.5% was distributed among different countries, positioning Canada as the foremost foreign investor in the sector.  

According to Canada’s Trade Commissioner Service, there are over 138 Canadian companies involved in the Mexican mining industry, making the country rank seventh overall in Canadian mining assets abroad. During CANCHAM Day 2023, attendees identified the role Mexico could play in the energy transition due to its potential for sourcing minerals for clean energy generation and storage. However, experts stressed that Mexico should work on improving the business environment for mining companies, as reported by MBN. 

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