Mining Sector Maintains Growth Trend for Six Consecutive Months

In June, Mexico's non-oil mining sector saw 8.6% year-on-year growth, marking its sixth consecutive month of strong performance, according to INEGI. However, growth in June was lower than the 12.5% increase reported in May.

In 1H24, mining activity rose by 5.6% compared to the same period in 2023. However, the mining services sector experienced a sharp 25% decline in June, continuing a trend of six consecutive monthly decreases, and contracted by 13% from January to June.

Experts point that the mining sector has been affected by President López Obrador’s policy to freeze new concessions and the uncertainties arising from the Mining Reform. Last month, the Supreme Court ordered a delay in resolving conflicts of interpretation and reviewing appeals related to the Mining Law reforms approved in May 2023. Experts have cautioned that this delay exacerbates uncertainty in the sector, particularly for companies seeking legal clarity to invest and advance their projects.

Jaime Gutiérrez, former President, CAMIMEX, told MBN that the Mining Law has gone through several phases to adopt a more pragmatic approach, though regulations still presents challenges rather than facilitating industry growth. “The constant change in laws is also an issue. Just as companies were adapting to the Mining Law, new proposals like the ban on open-pit mining, which lacked any solid technical or logical foundation, were introduced.”

Experts note that while uncertainty around the Mining Law has increased, it also offers an opportunity to reconsider proposals. "The Supreme Court is putting a stop to the current situation, and it is time to find more sustainable and beneficial solutions for the country," an anonymous expert told Outlet Minero.