Royalty Increases Threaten US$6.9 Billion in Mining Investments

The proposed increase in mining duties in Mexico could put over US$6.9 billion in projected investments at risk over the next two years, according to CAMIMEX. The chamber warned that higher royalties, restrictive permitting policies, and exploration limitations collectively pose significant threats to investment in the sector.

The Ministry of Finance (SHCP) recently announced revisions to special and extraordinary mining duties, raising rates from 7.5% to 8.5% and from 0.5% to 1%, respectively, effective 2025. These adjustments, according to the SHCP, are intended to align with global trends in rising mineral prices and to ensure fair contributions from those deriving benefits from these resources.

The organization emphasized that Mexico’s total tax burden of 52.68% places it at a significant disadvantage compared to leading mining jurisdictions such as Chile, Peru, and Canada. “This additional increase would further erode incentives for exploration, which has already contracted by 50% since the 2014 Tax Reform, while deepening legal uncertainty and diminishing Mexico’s attractiveness as an investment destination,” CAMIMEX stated.

The chamber highlighted that, since the 2014 Tax Reform, the mining sector has contributed MX$362.8 billion in fiscal revenue—equivalent to 4.1 times the budget of AIFA—and has invested billions in social, environmental, and educational initiatives benefiting 696 communities nationwide.