Mining Sector: Driving Development, Embracing Sustainability

Mining in Mexico goes beyond resource extraction. It is a key part of the country’s economic structure, supporting technological development and social progress. The government, through Plan México, recognizes mining’s strategic importance and highlights its environmental responsibilities, social impact, and governance framework. However, challenges remain that need to be addressed to maximize the sector’s potential.

According to CAMIMEX, the mining industry is a cornerstone of Mexico’s economy, representing 8.63% of the industrial GDP in 2023 and contributing 2.75% to the national GDP, rising to 4.5% when including the entire value chain. The industry drives local and regional economic activity, generating an estimated MX$269 billion (US$15 billion) in annual economic spillover, in addition to paying over MX$362 billion in taxes over the past nine years. As the country’s seventh-largest foreign exchange earner, mining supports economic stability and regional development.

Under Claudia Sheinbaum’s new government and Plan México, mining is recognized as a strategic sector, essential to the country’s economic growth and industrial diversification. It supplies critical raw materials vital to more than 70 industrial sectors, including automotive manufacturing, renewable energy, pharmaceuticals, steel production, construction, and agriculture. This role in supply chains promotes increased domestic content in Mexican products and supports the core goal of Plan México to reduce reliance on imports.

Marcelo Ebrard, Mexico’s Minister of Economy, emphasized that mining self-sufficiency is vital given the current global geopolitical context. “Our obligation as authorities is to be prepared,  not reactive, but proactive, to prevent vulnerabilities and seize opportunities to ensure our country’s resilience.” Ebrard highlighted that Plan México clearly prioritizes an increase in mineral production to safeguard the nation’s energy and self-sufficiency, reinforcing minerals as the foundation of Mexico’s economy.

The government’s current efforts are focused on reducing bureaucracy and simplifying investment procedures, which will make the country an even more attractive destination for foreign investors, explained  Lorenia Valles, President, Mining Commission, and Senator of Sonora. “Under Plan México, we aim to reduce the time it takes to process investment projects from 2.6 years to just one year or less. This will help streamline the process for mining companies to enter the country and get to work faster,” she says.

Through Plan México, the government also aims to increase company creation and strengthen the industrial base through the IMMEX 4.0 initiative, explains Valles. “We are at a crucial moment. By embracing modern practices, reducing bureaucracy, and attracting foreign investment, we can ensure that Mexico becomes a global leader in mining, contributing to a prosperous and sustainable future for all,” she says.

Environmental Responsibility: Advancing Sustainable and Low-Impact Mining

Mexico’s mining sector not only ranks among the world’s top producers of 17 critical minerals, including lithium, copper, silver, zinc, and molybdenum, but also plays a pivotal role in enabling development for emerging technologies like electric vehicles and renewable energy infrastructure. This positions Mexico as a strategic hub for the global energy transition and nearshoring opportunities.

Recognizing its environmental footprint, the sector is actively pursuing sustainability goals that align with the shift to a low-carbon economy.  In 2023, 35% of mining’s energy consumption is sourced from renewables such as wind (14.1%), hydro (1.3%), solar (0.4%), and renewable  cogeneration (9.7%), with targets to raise this share to 46% by 2030. Responsible water use is also prioritized, with mining representing only 0.27% of authorized water consumption nationally, recycling approximately 70% of its water through advanced treatment systems.

In addition to these efforts, the mining sector has made significant environmental investments, including the reforestation of 2,355ha in 2023 and a total of 14,300ha over the past five years. It also contributes to the protection of 25 species of flora and fauna. Thanks to advanced technology and improved practices, restoration work on mining sites has been successful, with some areas, such as the social and environmental closure of Minera San Xavier in San Luis de Potosi, being rehabilitated to the point that no trace of mining activity remains.

Social Contributions: Community Development, Inclusion 

Mining plays a crucial role in driving social development within local communities by promoting advances in education, healthcare, and infrastructure. Fabian Causabon, Partner, AOSENUMA, told MBN that viewing mining as a development partner aligns closely with the government’s vision of establishing development hubs to improve well-being.

“Mining, which has historically operated in remote and underserved regions, has a deep understanding of what vulnerability entails. Major mining projects are typically located far from urban centers, essential services, and transportation networks. Once these projects commence, they become focal points of their regions. Mining can support the government by channeling economic benefits to these vulnerable areas, transforming them into engines of prosperity.”

According to data from Mexico’s National Council for the Evaluation of Social Development Policy (CONEVAL), communities connected to mining have experienced a 45% reduction in social marginalization between 2000 and 2020, shifting from medium to very low levels of social lag. Educational attainment in these areas has also seen progress, with the percentage of individuals lacking basic education decreasing from 74% to 45%. Additionally, healthcare coverage has expanded, and housing conditions, including access to electricity, have improved compared to non-mining regions, underscoring the mining sector’s positive social impact.

In remote areas, the mining industry has become a crucial source of employment, providing over 416,000 direct jobs and an estimated 2.5 million indirect jobs nationwide. Notably, wages in the mining sector surpass the national average by 33% overall, and by 62% specifically within metallic mining, fostering quality employment and economic stability across many regions.

On the inclusion front, women’s participation in mining has steadily increased, accounting for nearly 18% of the workforce in 2023, with a total of 74,529 women employed. Mining companies invested MX$618.1 million in training and education programs to enhance the skills of all employees, leading to an average schooling level of 13.1 years among workers, but three years higher than the national average.

Beyond training, health and safety remain top priorities, with MX$6.063 billion invested in 2023 in programs focused on workplace safety, equipment modernization, and accident prevention. Although mining carries inherent occupational risks, companies affiliated with CAMIMEX report accident rates below the national average, 1.33 versus 1.83. The sector remains committed to its ambitious goal of further reducing incidents, striving toward zero accidents.

Governance and Transparency: Regulatory Framework, Accountability
Mining is among the most regulated industries in Mexico, governed by a comprehensive legal framework that ensures environmental protection, occupational safety, fiscal responsibility, and social accountability. Art. 27 of the Constitution establishes state ownership of mineral resources, which are exploited under government-issued concessions and regulated through more than 27 federal laws, official standards, and specific operational requirements covering surface access, handling of substances and explosives, fiscal levies, and special regulations. Mines face an average of 4,000 compliance obligations.

The mining lifecycle consists of distinct stages, each subject to rigorous oversight and permitting. Prospecting assesses geological potential, followed by exploration and advanced exploration involving field visits, sampling, geochemical analysis, and drilling. Development and construction include technical, social, environmental, legal, and economic feasibility studies that determine the mining method. Operations encompass extraction, processing, and smelting to obtain high-purity metals. Finally, restoration, closure, and post-closure phases ensure safe and sustainable site rehabilitation. The exploration phase alone can last up to 20 years, highlighting the sector’s long-term commitment and regulatory complexity.

Transparency initiatives such as Mexico’s participation in the Extractive Industries Transparency Initiative (EITI) reinforce the sector’s adherence to international standards. Throughout 2023, working groups advanced strategies to maintain compliance, including preparing national reports, addressing previous validation observations, and planning future validations to uphold Mexico’s position in global transparency efforts.

Challenges Facing Mexico’s Mining Sector

Despite significant investment and sector stability, challenges remain. In June, President Claudia Sheinbaum announced a halt on issuing new mining concessions, reaffirming her commitment to stricter environmental oversight. However, she clarified that regulations like an outright ban on open-pit mining were being dismissed.

“Two weeks after we took office, I said the initiative had issues because banning all open-pit mining would prohibit, for example, sand  or salt mines,” Sheinbaum explained, after consulting with former President López Obrador. She also noted that had López Obrador’s proposed constitutional reform passed, it might have blocked the development of lithium mining, a strategic priority for Mexico’s energy sovereignty.

Sheinbaum emphasized that mining projects must be evaluated on a case-by-case basis, focusing on their specific environmental impacts. In press remarks, she reiterated that no new mining concessions will be granted, clarifying that current permit reviews relate only to waste management and environmental mitigation, not new mining operations.

Foreign Minister Alicia Bárcena announced she is leading efforts to address legacy pollution, particularly from mining tailings. She stressed that mining activity continues in Mexico, though open-pit mining faces tighter scrutiny due to its global environmental footprint.

José Fernando Aboitiz Saro, Head of the Extractive Activities Coordination, Ministry of Economy, acknowledged that outdated permits and insufficient inter-agency coordination had stalled parts of the sector. He confirmed that SEMARNAT recently approved a large number of delayed permits. Sheinbaum stressed these permits aim to update existing operations to reduce environmental harm, such as improving tailings and water treatment management, rather than authorize new mining projects.

Industry leaders like Diego Torrolea, Managing Director, Takraf Mexico, highlight that the absence of a clear long-term mining policy and inconsistent short-term guidance creates uncertainty. This makes capital investment, financing, and workforce development difficult, prompting some companies to invest elsewhere. Nonetheless, he noted that many professionals, companies, and communities remain proactive despite these challenges.

“We are taking leadership roles on the ground with the tools we have. In the absence of clear government signals, our strategy is to focus on what we can control, building technical capacity, improving reliability, and maximizing the performance of existing infrastructure,” Torrolea affirmed.