Mining Sector’s Growth Driven by Precious Metals

Research forecasted that the Mexican mining industry’s value will continue to grow at a slow but steady pace owing to increasing demand for different minerals like gold, silver and copper.

The Mexican mining sector’s market value totals US$1.8 billion. A report from Grand View Research predicted that its value will grow by 2.9% year-to-year between 2023 and 2030. According to Grand View, the sector’s value will reach US$1.87 billion in 2023 US$2.3 billion in 2030. 

The report links the potential growth to the increasing demand for precious metals, which represent the largest market share of the industry, as well as for metals used for the energy transition like copper, zinc and lead. On Jan. 11, 2023, MBN reported that gold stocks had been experiencing an upward trend over the past six months. For instance, VanEck’s Gold Miners ETF (GDX), a benchmark for the sector, has continued its yearly growth trend. 

According to Grand View’s report, precious metals were the main source of income for the sector with 47% in 2022 due to a higher demand for luxury products. For silver, experts predict the energy industry will drive demand, as the metal is used for the manufacturing of solar panels.  

Other important sources of the sector’s revenue are minerals like lead, copper, zinc and molybdenum, which are gaining relevance because of their application in the automotive industry. Similarly, the increasing demand for electric devices is fostering further demands. However, in the case of copper, experts believe that its prices will be volatile in 2023 due to COVID-19 restrictions in China and a tight supply, among other factors, as reported by MBN. 

The report highlighted the increasing importance of the lithium industry in Mexico. Nonetheless, it also warned that most of the discovered deposits are in remote areas that are difficult to reach. It also noted that there are just a few high-quality deposits to explore. Grand View said that due to the geology of the deposits, the obtained grades could be lower than those projected, which may affect production.