Mining Production Value Down by 1.3% in September

Mining production value contracted 1.3% in September 2024, INEGI data reveals. The decrease was highly driven by the mining-related services segment, which reported a 10.8% contraction when compared to August 2024. Year-on-year, mining-related services also experienced the largest drop, with a 15.2% contraction compared to September 2023. This was followed by oil and gas extraction, which saw a 6.1% decline. In contrast, metallic and non-metallic mining reported a 2.7% increase.

According to INEGI’s Monthly Index of Industrial Activity (IMAI), Mexico’s industrial activity rose by 0.6% in September 2024, when compared to August 2024. This growth was driven by a 1% increase in the manufacturing sector and a 0.7% rise in the construction sector. However, the electricity generation, transmission, distribution, and commercialization sector, along with water and natural gas supply, saw a decline of 1.1%. Additionally, the mining sector experienced a 1.3% contraction, marking the largest decrease among the index’s segments.

Year-on-year, industrial production value remained flat, with no change in real terms compared to September 2023. However, within the index, manufacturing saw a 1.5% increase, while electricity, water, and gas supply grew by 1.2%. In contrast, construction and mining faced setbacks, declining by 2.3% and 4.3%, respectively.

The monthly contraction in the mining industry was primarily driven by mining-related services, which saw a decline of 13.8%. This was followed by a 0.4% decrease in oil and gas extraction. However, metallic and non-metallic mining, excluding oil and gas, reported a 0.1% increase in production value during September.

Mineral Production and Investment Outlook

According to INEGI’s data for August 2024, gold production fell by 1.5% year-on-year, totaling 5,374kg. In contrast, silver production increased by 19.8%, reaching 317,532kg. Zinc production saw a significant rise of 91%, totaling 30,522t. Copper production, however, declined by 2.6%, reaching 42,274t, while lead production increased by 46.9%, totaling 12,069t.

CAMIMEX projects mining investment in Mexico to drop to US$3.8 billion by 2025, marking the lowest level in nearly a decade. Investment for 2024 is expected to reach around US$5 billion, similar to 2023's US$4.96 billion. Pedro Rivero, President, CAMIMEX, attributes the decline to a halt in new mining concessions since 2018. Exploration investment is also set to fall, from US$543 million in 2023 to US$500 million in 2024 and US$400 million in 2025, as reported by MBN.