Mining Ranked the Third Largest Sector for FDI in 1H24

Mexico reported a record US$31.1 billion in foreign direct investment (FDI) for 1H24, representing a 7% increase from the same period in 2023, according to preliminary figures from the Ministry of Economy (SE). The mining sector emerged as one of the Top 3 sectors driving FDI growth.

According to SE, of the US$31.1 billion received in FDI, US$30.3 billion was attributed to reinvested profits, while new investments amounted to US$900 million. “For the second consecutive year, we highlight the unprecedented amount of profit reinvestment by companies in the country, due to economic stability, the favorable business environment, and the competitive advantages offered. This situation is ideal for expanding and improving production processes, turning these companies into magnets for new investments,” SE noted in a press release.

The data also indicated that intercompany accounts in the 2Q24 suggest companies have sufficient liquidity to cover past debts and provide loans within their corporate groups.

The United States remained the largest investor, contributing 44% of the total FDI. Germany and Japan followed as significant investment partners. Additionally, 68% of FDI during the first six months was concentrated in five federal entities, with Mexico City being the primary destination, receiving over 46% of the total FDI. SE noted that 54% of the registered FDI was directed toward the manufacturing sector, which was followed by financial services with 15% and mining with 10%. 

Mining Sector and FDI

FDI in the mining sector experienced a substantial rise, increasing by 329% compared to the nearly US$700 million reported in 1H23. According to SE, mining now represents 10% of the total FDI, with preliminary figures indicating at least US$3 billion in investments.

In 2023, mining FDI grew 118% from 2022, reaching US$3.49 billion. According to CAMIMEX's Annual Report 2024, total FDI in the mining sector, including oil and gas, reached US$3.49 billion, a 104.8% increase compared to 2022. Of this amount, US$2.11 billion was allocated to metallic and non-metallic mineral mining, accounting for 60.3% of the sector's FDI.

CAMIMEX’s report highlights that there are 166 foreign-invested companies operating in Mexico. Of these, 73.5% are Canadian, and 10.2% are American. Companies from Australia, China, Japan, South Korea, the United Kingdom, India, Spain, Italy, Chile, and France are also present, among others, although not all these countries have projects currently operating in Mexico.