John-Mark Staude
CEO
Riverside Resources
/
Expert Contributor

Mexico at a Time of Opportunity for People and Resources

By John-Mark Staude | Thu, 01/20/2022 - 13:00

Early in 2022, Mexico finds itself in a fine position to grasp the opportunity to lead the Americas and the world again. Over the centuries, Mexico has profited greatly from the riches of the country, creating jobs, communities, sustainability, infrastructure and building family legacies through the development of Mexico’s mineral resources. Today, Mexico has this opportunity again.

Recently, however, government policies and direction have swayed from this focus and the jobs, investment, creative growth, new schools, hospitals, and living standards in rural communities have slipped from what could be due the inability to deploy capital. Capital instead is in flight, leaving Mexico, and definitely not coming to Mexico. Major mineral investments are not happening as they have in the past as fear of unstable taxes, labor, safety, and government policies has pushed the country’s favorability as a resource development destination down to the lowest it has been in the past 30 years. 

In 2022, there is the opportunity to:

  1. allowing new mineral titles, mineral rights to be granted
  2. cancel unpaid, unmaintained, unfunded mineral concessions and rapidly free these for investment, which will bring new tax revenue and new jobs
  3. approve projects for sustainable and environmentally responsible resource development
  4. IVA repayment, which could help all along the operational chain as each transactional step that pays IVA could be improved by the government reimbursing instead of continually adding inefficient blockages that result in huge losses all around
  5. Motivate investment, job creation and the future of growth and prosperity in Mexico by incentivizing new ventures, expansions, and investment

Over the next 24 months there is an amazing opportunity as the ongoing global push for decarbonization of the energy chain could work to propel Mexico mining sector in a positive direction and provide commodities and mineral products to fuel global growth and the transition to clean energy, clean air and clean water. The Mexico mining sector has been a positive contributor and can do this very well, given the chance now in 2022. We stand ready to reengage and again invest and work but we really need these five steps to make the great potential future Mexico has a reality. The time of opportunity for Mexico’s people and resources is now.

Photo by:   John-Mark Staude