Mining Investments are Expected to Exceed US$5 BillionBy Antonio Trujillo | Wed, 09/01/2021 - 09:06
The Mexican Mining Chamber (CAMIMEX) expects this year’s investments in the mining industry will exceed US$5 billion.
According to forecasts carried out by the sector report that a production increase as well as in resources destined for exploration will mean investments are going to increase and overcome the undertow left behind by the pandemic, a major setback for the industry last year. In fact, CAMIMEX, as revealed by President Fernando Alanís, is expecting these investments to go beyond US$5 billion, a 41.5 percent growth compared to 2020, when investments totaled US$3.5 million in a ten-year lowest, in large part due to the two-month absolute halt the mining industry experienced during the pandemic. “We think it may be a good year for investments,” reassured Alanís, who also revealed that the sector expects a 14 percent increase in resources destined to exploration projects, equivalent to US$385 million.
Alanís also noted the importance of the mining industry and highlighted it has been a great engine for the Mexican economy during these troubled recovery times. “Despite the difficult situation the world is going through due to the COVID-19 pandemic, mining companies have not stopped generating stable, quality jobs, with salaries 36 percent higher than the national average,” Alanís added. In spite of the troubling conditions at the time, mining investments were only down 19 percent in 2020, compared to 2019.
“We must be very clear that mining is closely linked to the supply chains of activities deemed as essential, such as the chemical, food, electricity, [...] We stand by Mexico to contribute to its economic recovery,” he commented, while highlighting the need for long-term decisions which must be made on the part of the government, and also that judicial security must be ensured for continued growth, with well-established, carefully thought rules, even if outlooks are currently promising.
During the same virtual press conference, other CAMIMEX members reported on the various safety measures that were undertaken to protect workers, “the priority of companies affiliated with CAMIMEX has always been the safety of both their collaborators and the communities,” commented Karen Flores.
Job creation in the industry has not been left behind. Only in the first five months of 2021, a total of 40,895 new direct jobs were created, plus approximately 2 million indirect jobs. Data released by IMSS corroborates that the mining industry is 36 percent higher than the national average in salary perception. The mining industry in Mexico represents about 2.3 percent of the country's GDP, and 8.3 percent for industrial GDP.