Mexico Ranked 34th Most Attractive Mining Country in the World
Mexico improved its position among the most attractive countries for mining investment, according to the Fraser Institute’s 2021 Annual Survey of Mining Companies. The country went from rank 42 to 34 in a list featuring 84 mining countries and jurisdictions. This is Mexico’s best ranking since 2018.
Mexico ranked fourth in comparison to other Latin American countries. In terms of investment, Mexico is Latin America’s seventh largest market. Ecuador is the best-ranked country in the region, occupying the 24th place globally. The country is followed by Colombia, ranked 29th, and Chile, placed 31st. The countries with the most negative evaluations are Venezuela, Nicaragua and Bolivia, placed 88th, 81st and 77th respectively.
Even though Mexico improved its position, it did not improve its score in 2021. In 2020, the country scored 66.87 out of 100 points, whereas it scored 66.46 in 2021. The report highlighted the increasing uncertainty regarding the exclusion of the private sector in the production of key resources, such as lithium.
“The federal government’s new moratorium on mining concessions is an industry-killer,” said to the Fraser Institute. “The federal government's proposal to exclude or limit private participation in the exploration and exploitation of minerals related to the energy sector has created uncertainty,” added an anonymous company manager.
Mexico also ranked 28th regarding the best practices for mineral potential. It also ranked 30th in terms of quality of infrastructure and 42nd regarding trade barriers. Mexico placed 68th in the political stability index, though the report considers it “not a deterrent to investment.”
The survey evaluates not only countries but also regions. Western Australia is ranked as the top region to develop mining projects, followed by Saskatchewan, Canada and Nevada, US.
According to Fraser Institute’s website, the survey was sent to approximately 2,000 exploration, development and other mining-related companies. Participating companies reported spending on exploration of over US$2.5 billion. For the first time since 2018, Asian jurisdictions are assessed in the report.
The Canadian institute conducts research on government actions regarding taxation, health care, education, economics, energy, natural resources and other issues that affect Canadian citizens. Since 1997, the Fraser Institute has conducted an annual survey for mining and exploration companies to assess how concessions and policy issues such as taxation and regulation affect the industry. The institute aims to help governments improve their mining policy in order to attract more investment.