Mining Production Contracts 5.3% in January 2026

Mexico’s mining production recorded a 5.3% annual contraction in January 2026, driven by double-digit declines in sulfur, lead, and zinc despite a marginal monthly recovery. This fourth consecutive month of decline reflects a growing disconnect between the nation’s mineral potential and a restrictive operational environment characterized by the 2023 Mining Law Reform's regulatory vacuum. The resulting legal impossibility for new concessions and rights transfers specifically impacts investment certainty for stakeholders, stalling long-term capital allocation across the sector.

 

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Mexico’s mineral production contracted by 5.3% in January 2026 year-on-year, reports INEGI. The decrease was mainly driven by sulfur, lead, and zinc, which reported double-digit contractions in the period. This decrease highlights a growing disconnect between Mexico’s vast geological potential and its current operational reality, according to experts.

According to INEGI’s Statistics on the Mining-Metallurgical Industry (EIMM), Mexico’s mining production rose by 1.5% in January 2026 when compared to the same period in 2025. However, when measured against January 2025, the sector experienced a 5.3% decline.

The performance of specific minerals varied significantly during the first month of the year. According to original figures, several key metals and non-metallic minerals saw a decrease in production volume compared to the same period in 2025. Sulfur production recorded the sharpest decline, falling 33.9% from 20,719t in January 2025 to 13,689t in 2026. Zinc followed with a 23.2% annual reduction, dropping from 44,935t to 34,519t.

Lead output decreased by 15.1%, totaling 14,421t. Precious metals also trended downward; gold production fell 8.7% to 5,598kg, while silver production saw a more moderate decline of 3.6%, reaching 329,184kg.

Fluorite production matched the decline of silver, dropping 3.6% to 127,798t. Copper remained the most stable mineral in the report, showing no variation with a total of 41,365t produced in January 2026.

In contrast to the overall annual decline, three categories reported growth. Iron pellets saw a double-digit increase of 11.8%, rising to 358,969t. Gypsum production increased by 0.7% to 525,573t, and non-coking coal recorded a marginal rise of 0.6%, totaling 34,324t.

Performance by State

High levels of regional concentration defined the output of key metals, particularly in the state of Zacatecas. In gold mining, Zacatecas led with 3,473kg, representing 38.6% of the 9,006kg produced nationally. The state also dominated silver extraction, providing 189,871kg, or 42.9% of the national total of 442,201kg. This concentration was even more pronounced in lead and zinc, where Zacatecas accounted for 75.2% (14,777t) and 59.8% (40,564t) of national production, respectively.

Sonora maintained its role as the primary copper hub, contributing 47,265t, which accounts for 82.9% of the 57,048t extracted nationally. Iron production, which totaled 467,540t, was led by Michoacan with 242,832t, representing a 51.9% share of the national market. 

Non-metallic minerals showed the highest levels of geographic specialization; San Luis Potosi produced 125,752t of fluorite, representing 94.9% of the 132,502t produced across the country. Finally, sulfur production was led by Tabasco, which contributed 7,287t, or 53.2% of the national total of 13,689t. 

Mining Continues to Show Negative Performance

Mexico's mining sector has now recorded four consecutive months of annual contraction. Following a peak of 17.9% growth in December 2024, the industry experienced a steady decline throughout 2H25, culminating in year-on-year drops of 1.2% in October, 4.7% in November, and 7.2% in December. Although January 2026 saw a modest monthly recovery of 1.5%, the 5.3% annual decrease confirms that production levels remain significantly below the previous year's performance.

While Mexico maintains competitive mineral potential, ranking 27th out of 58 jurisdictions evaluated in the Fraser Institute Annual Survey of Mining Companies 2025, the report emphasizes that the country's attractiveness is negatively impacted by the current regulatory and political environment. This sentiment aligns with the ongoing uncertainty surrounding the 2023 Mining Law Reform and its pending secondary regulations, which continue to influence investment and operational certainty across the sector. “A modernized law should establish clear, streamlined procedures regulated by the federal government while providing legal certainty for investors,” Laura Díaz, Partner, DBR Abogados, told MBN.

Díaz noted that several provisions remain unregulated, including financial instruments, guarantees, and community or indigenous consultation processes, which results in regulatory uncertainty, which increases operational risk and constrains the growth potential of the mining sector.

What to Expect from the Mining Law’s Regulations?

According to Santiago Suárez, Partner, Servicios Legales Mineros (SLM), several modifications introduced in the reform require the issuance of regulations to become operational. Among the obligations that depend on regulatory development are those related to social impact studies, environmental impact statements, and prevention measures, where the technical content, submission deadlines, and competent authorities are subject to the provisions of the regulations. Similarly, the required level of detail and evaluation methodology for the social impact assessment, as well as the structure and scope of geological-mining reports and annual reports on works and projects, depend entirely on these pending guidelines.

Suárez also notes that the reform introduced the concept of a financial vehicle to guarantee compliance with measures derived from the social impact assessment, but the regulations must still define the acceptable mechanisms, minimum amounts, and procedures for enforcement. Regarding the granting of concessions, the system has shifted from temporal priority to public bidding; however, the law leaves it to the regulations to establish the basis for the clauses of contracts subject to bidding. 

Consequently, Suárez highlights a legal impossibility of granting new concessions or fully operating the procedure for the transfer of concessions between private parties until the regulations are issued. “It is important that stakeholders in the mining sector remain informed and attentive to regulatory developments. Conducting due diligence processes and having detailed knowledge of one's own operations will be key elements in facilitating an orderly transition to the new regulatory framework,” he stresses.