Mining Exploration Projects on Standby Rise to US$959 Million

The Mexican Mining Chamber (CAMIMEX) wants to establish a group to represent the main mining states of the country and the Ministry of Economy, with the aim to boost exploration and development in the country.

In 2021, the exploration mining projects that have been postponed in Mexico represented an amount of US$959.7 million, as investors continued to wait for better operational conditions. This number represents a 9 percent increase in comparison to what was registered in 2020.

According to the annual report presented by CAMIMEX, 822 projects were halted in 2021, adding 68 in comparison to 2020. Since 2013, these stops have been registering an increase. In that year, 104 projects were stopped, whereas in 2018 the number jumped to 439 due to a change in the tax regime. For 2021, the number doubled to 822.

“It is essential to promote exploration and unfortunately in the last seven years, we have seen a decrease of investment in exploration, leaving many projects on standby as they wait for better conditions,” said José Jaime Gutiérrez Núñez, President, CAMIMEX.

He pointed out that the chamber will begin to work with local governments as well as at the federal level to get new concessions and propel exploration and development projects.  

“We keep contemplating that we do not even have the 35 percent of the total territorial extension explored. There are still huge opportunities in the country to grow the mining sector. If this does not happen, mines come to an end sooner or later because there will not be any new mineral resources to exploit and new places to invest, as investment disappears,” added Gutiérrez.

Furthermore, he said that the chamber seeks to establish a workgroup that comprises the five governors of the main mining states and is headed by the Ministry of Economy. CAMIMEX noted that despite the high investment levels of 2021, the mining industry is attracting less in 2022. He explained that Sonora, Zacatecas, Chihuahua, Durango and Guerrero are the entities that lead the value of national mining production, as the states contribute more than 80 percent of the total. 

A few months ago, projections showed that mining investment would be less this year, but the price of metals has improved the panorama and raised the predictions to US$5.53 billion, 15.2 percent more than in 2021.

In 2021, total investment stood at US$4.23 billion. Even though the forecast is positive for this year, it remains far from the US$8.04 billion reached in 2012, according to Reuters.