Mexico’s Mining Hub Requires a Supportive Government

Q: What is the status of Sonora’s mining industry?
A: Sonora's mining industry is thriving thanks to its outstanding geological potential. The state leads in Mexico with 145 mining projects at different stages of development. Among these, 49 are in the production phase and 93 are in the exploration phase, which has been confirmed by CAMIMEX. In addition to traditional metallic mining, non-metallic mining is gaining importance, especially to support the energy transition. Sonora also holds minerals crucial for construction, such as gypsum and lime.

Sonora is on the brink of launching three new mining projects, signaling a positive trend from exploration to operational stages; however, there are also challenges. Four projects are reaching the end of their production cycles, which may impact the state's mineral production in the short term. Despite the challenges, Sonora remains a strong mining hub in Mexico by focusing on exploration, development, and active mining projects.

Q: Where does Sonora stand in comparison to Mexico’s overall mining production?
A: Sonora is a premier mining state because it contributes 31.4% to national production. The state leads in copper production, which accounts for 75.6% of the national total, making us the largest copper producer in Mexico and the fifth-largest in the world. Sonora also ranks first in gold production in Mexico with 25.7% of the national output. It ranks second in barite production with 21.4% of the national volume, second in iron with 10.7%, and fifth in silver with 6.5%.

Although Sonora is not a zinc producer now, the completion of Grupo México's Buenavista del Zinc plant in Cananea is set to change that. This development will propel the state, allowing it to become Mexico's second-largest zinc producer. This estimate, solely based on Grupo México's new project, will place the state right behind Zacatecas, a consistent producer of lead and zinc.

Sonora is also Mexico’s sole producer of molybdenum, wollastonite, anthracite coal, and graphite. The state leads in the production of non-metallic minerals, such as salt, gravel, gypsum, and cement, which play a crucial role in infrastructure development. There are minerals produced in Sonora that are not yet on the radar but will play a significant role in the future, especially for energy generation.

Q: How does Sonora fare in terms of female participation in the mining sector?

A: By the end of 2023, Sonora’s mining industry generated 20,858 direct jobs and 120,000 indirect jobs, making it the second-most economically powerful sector in the state after manufacturing. Female participation in the industry has been increasing annually, with a 2.7% increase in 2023. Over 7,200 women are now working directly in the mining sector and they are present at all levels of the mining chain. Our data shows that 43% of women hold administrative positions, 27% are field supervisors, 23% are in technical operational roles, and 6% are executives. Nearly 50% of women in Sonora’s mining industry occupy technical, operational, and supervisory roles, actively contributing to the state's mining production.

Q: How does the academic sector in Sonora contribute to the mining industry?

A: Sonora is now a major contributor of mining professionals, surpassing historically dominant states like Guanajuato. About 14% of mining professionals come from Sonora's universities, compared to Guanajuato's 11.4%. This shift demonstrates not only the increasing presence of women in the sector but also a broader interest among new generations in mining careers. Previously, a mining program might have had only 11 students, but now enrollments range from 800 to 1,200 students. A larger number of universities in the state now offer mining-related programs, providing students the opportunity to develop their skills in a region with well-established mining operations.

The academic sector in Sonora is also diversifying. Previously, nearly 100% of students in the earth sciences or mining-related fields were men, but now the ratio is 60% men to 40% women; however, more women are graduating from these programs than men.

Q: What achievements has the Sonora government made in preparing its workforce for the mining sector?

A: Universities in the state, such as Universidad de Sonora (UNISON) and Universidad Estatal de Sonora (UES), offer a successful dual education program that aligns its curriculum with industry needs. They do not just look at theory but also work with the industry to identify the most suitable profiles that can quickly meet sector demands. These universities have expanded their curricula to include fields such as community relations, ecology, and investment and project analysis. This expansion allows students to enter sectors that were previously unexplored by their programs. 

This proactive approach is not just confined to mining; it is also evident in other engineering sectors. The shift in supply chains and geopolitical factors has opened up new opportunities in the state. For example, in response to the worldwide shortage of semiconductors, UNISON launched a unique program in semiconductor engineering, the first of its kind in the region. This program directly addresses the pressing demand for semiconductor experts in the industry. The initiative is closely linked to the needs of semiconductor industry development in Arizona, enabling local talent to access opportunities in the US market.

Q: What are the main challenges the industry faces in Sonora and how does the state government help companies face them? 

A: The state faces several challenges, including speculation and investment reservations due to political narratives and the upcoming government transitions. However, Sonora’s government does not hinder industry development but aligns with its needs. The new Mining Law has sparked diverse reactions. For example, the reduction of concession lifespans is seen by some as restrictive, but it also requires concession holders to demonstrate progress and intent to develop projects. It also allows for extensions, potentially allowing companies to have more time if they comply with requirements. Despite initial confusion, no project in Sonora is on hold due to this reform. Many companies, including Canadian firms, already comply with international standards for social responsibility and project management, exceeding the requirements of Mexico's Mining Law. The reforms simply formalize these practices, ensuring a level playing field for all.

We focus on explaining these reforms and their benefits, dispelling misconceptions that could deter investment. Sonora remains a prime location for mining, with ongoing exploration and successful projects like SilverCrest Metals’ Las Chispas mine exceeding production estimates threefold. 

Mining is crucial for Sonora, with 39 out of 72 municipalities involved in the industry and 22 of them relying on it as their primary economic activity. Given the industry’s significant presence, we cannot afford to hinder the sector's growth, so we strive to collaborate to create shared value and sustainable development. We are actively engaging with federal authorities to align with national plans. Our message is one of optimism and collaboration and we stress that compliant companies have nothing to fear. Sonora's mining sector is not only resilient but also essential for economic growth and environmental stewardship.

Q: What are the Sonora government's plans for the mining sector in the middle term?

A: The promotion and development of the mining industry in Sonora is crucial. We must also address our historical debt to small and medium-scale miners. It is estimated that 20% of the gold produced in Sonora comes from artisanal or informal mining, highlighting the need to provide this sector with technical assistance and training to help with compliance.

We are a facilitating government and work with support from federal agencies such as the Ministry of Environment and Natural Resources (SEMARNAT), the Federal Attorney for Environmental Protection (PROFEPA), the Ministry of Economy, and the Ministry of Labor (STPS). We aim to support investments and individuals who are committed to the state's development while recognizing companies with strong social licenses as models for others to follow.

The General Direction of Mining is part of Sonora’s Ministry of Economy and focuses on promoting responsible mining practices. It assists mining companies with administrative processes, offers technical support, and helps secure credit from other government agencies for small and medium-sized miners.