Mining Investment Projected to Reach Decade-Low by 2025: CAMIMEX

CAMIMEX projects that mining investment in Mexico will decline to US$3.8 billion by 2025, marking the sector’s lowest level in nearly a decade. In 2024, investment in the sector is expected to reach approximately US$5 billion, aligning closely with the 2023 level of US$4.96 billion.

CAMIMEX President Pedro Rivero attributed this decline mainly to the absence of new mining concessions, which have not been issued since 2016, when former President Andrés Manuel López Obrador assumed office. After an investment of US$543 million in exploration in 2023, CAMIMEX anticipates a decrease to US$500 million in 2024 and US$400 million in 2025.  “Several factors have impacted the industry’s competitiveness in Mexico, including the legal framework, permit processing efficiency, fiscal conditions, and the lack of exploration incentives,” the CAMIMEX report notes.

Rivero further observed that permit acquisition has grown more challenging under the new Mining Law. However, in early October, the Supreme Court issued an injunction against the Mining Law and its 2023 amendments. In a three-to-two decision, the Court’s Second Chamber deemed the reform’s fifth transitory article unconstitutional. As a result, the Mining Law will undergo additional review by the Court’s Plenary, where all 11 justices will assess potential legislative procedural violations. Overturning the reform requires a supermajority of eight votes in the Court’s Plenary, a threshold that legal experts view as difficult to achieve. The retirement of Minister Luis María Aguilar Morales is expected to further complicate efforts to secure the necessary support, potentially shifting the current voting dynamics.

Rivero emphasized that despite ongoing uncertainty in the sector, CAMIMEX representatives have engaged with officials across all levels of government, including President Claudia Sheinbaum’s administration, to underscore the critical role of mining and encourage more balanced regulatory approaches.