Image credits: Nikolay Frolochkin
News Article

Mining Industry Attracts US$4.24 Billion of Investment in 2021

By Karin Dilge | Thu, 07/28/2022 - 09:21

According to the latest data from the Ministry of Economy, the mining industry received a 16 percent year-over-year increase in investments in 2021, remaining as one of the most attractive productive industries for investment in the country. The ministry reported that total investment summed up to US$4.24 billion at the end of the past year.

In addition, the Ministry informed that Mexico was Latin America’s sixth-largest destination for investment. On a global level, it was in 34th place, according to the Investment Attraction Index.

“Mexico's mining industry remains very attractive to investors despite the challenges. First of all because it is a consolidated industry with years of experience and knowledge. Second, as a result of this, there are highly trained people who understand how to work efficiently from construction to mine operation. Third, the mineralogy of the country is excellent as it has very large and rich mineral deposits. These characteristics will allow Mexico to remain one of the most attractive investment jurisdictions,” Adam Webb, Director of Mine Supply, Metal Focus, told MBN.

Furthermore, the Ministry of Economy reported that the value of metallurgical mining production in Mexico stood at MX$338.18 billion (US$16.64 billion) in 2021. This amount is 20 percent more than the MX$281.51 billion (US$13.85 billion) in 2020.

Mexico is the world’s largest silver producer and is among the Top 10 regarding the production of 17 minerals, including second in fluorite, third in celestite and wollastonite, sixth in zinc, seventh in salt, eighth in copper and ninth in gold.  

What is more, the Mexican Social Security Institute (IMSS) registered 399,366 direct jobs in the industry at the end of 2021, which represents a 7.56 percent increase, or 28,055 more jobs than those registered in 2020.

The National Institute of Statistics and Geography (INEGI) reported that mining activities contributed 3.06 percent to Mexico’s national GDP and 9.62 percent to its industrial GDP. This also surpasses the numbers of 2020, when the sector added 2.3 percent to the national GDP and 8.3 percent to the industrial GDP.

In 2022, Mexico has mining projects with national and foreign capital that contemplate investments close to US$3 billion, a considerably inferior amount compared to the US$4.24 billion seen in 2021.

This year, “investors and companies are wondering whether to invest more or to exit the Mexican mining sector. The reform has scared mining investment out of the country. Changes in policies toward the mining sector are needed; otherwise, the industry’s future foreign investment will certainly diminish,” Ralph Shearing, CEO, Altaley Mining, told MBN.

CAMIMEX has emphasized that recent regulatory shifts are causing the country to miss out on opportunities valued at around US$25 billion. However, Webb explained to MBN that the Mexican government's actions are not unique in the Latin American context: “The Mexican government’s policies obviously have an impact on the industry as they make Mexico less attractive from an international perspective. However, these are not only being implemented in Mexico, but also in other countries in the region such as Peru and Chile. However, I think that Mexico has numerous opportunities compared to other regions, especially in silver mining, so it will still be relevant."

The data used in this article was sourced from:  
Mining Mexico, MBN
Photo by:   Nikolay Frolochkin
Karin Dilge Karin Dilge Journalist and Industry Analyst