Mining: Driver of Social, Economic Wealth in Sinaloa

Since 2021, mining companies have invested US$30 million in Sinaloa, generating an economic benefit of MX$5 billion for the state. Although mining investment in Sinaloa has been significant in recent years, the production of gold has fallen 80% in the last 10 years. However, new investment is expected to further boost the state's mining production. 

In November 2023, Sinaloa produced 36kg of gold, a significant decrease compared to the same month in 2013, when it produced 143kg, and April 2016, when it reached its peak at 473kg. This reduction in production has led to Sinaloa being ranked 16th nationally among gold-producing entities. Nevertheless, experts anticipate a positive outlook for Sinaloa in the next five to 10 years as new investments expand operations and explore additional areas, suggesting a recovery in the state’s gold production industry.

Javier Gaxiola Coppel, Minister of Economy, Sinaloa, highlighted that the mining sector brings economic benefits to the region beyond direct employment, boosting industries such as restaurants, hotels, transportation, among others. Gaxiola emphasized that, in addition to the economic benefits, it also increases social well-being for communities, as mining generates jobs, boosts local businesses, and raises the standard of living. Hernando Rueda, President, CLUMISIN, said that the four most important projects in Sinaloa are Prime Mining's Los Reyes, Vizsla Silver's Pánuco, Oroco Resources' Santo Tomás and GR Silver Mining's Trinidad and San Marcial.

Gaxiola emphasized that although mining is frequently accused of causing pollution, the Mexican mining sector strictly adheres to environmental regulations, establishing itself as one of the most stringent in the country. "The mines that work in the state are listed on the Toronto Stock Exchange. They are public companies and therefore comply with worldwide processes and protocols in social and environmental responsibility. Mexico is also being stricter in environmental conservation," Gaxiola said.

Rueda stressed that the main challenge faced by the mining sector in Sinaloa is the Mining Law, which led several companies to file amparos to safeguard their projects. He noted that the mining sector contributed 4.3% to the country's GDP in 2022. However, after the reform, investments have declined considerably. Rueda noted that another challenge has been for companies to adapt to the latest trends in ESG.

"Challenges have always been present, however, foreign and local companies working in Mexico have proven to be more conscious. They have allocated resources exclusively to treat ESG with the seriousness it deserves so as not to affect the environment that surrounds the entire mining environment," Rueda said.

Sinaloa currently has 16 active mining projects, 17 in exploration and 5 inactive, for a total of 38 mining projects. There are also 20 beneficiation plants dedicated to mineral processing in the state.