SGM Limits New Exploration Projects for 2026

The Mexican Geological Survey (SGM) will pause the expansion of new exploration projects in 2026 due to the size of the areas already assigned and the operational capacity available, according to its Director, Flor de María Harp. 

She explained that the Ministry of Economy issued three exploration orders this year, which will remain the agency’s main focus throughout 2026. “For now, given SGM’s operational capacity, we will move forward with these three orders and, depending on the results, we may request an additional project. These areas cover large extensions that require detailed study,” she said.

The three projects include Las Granadas in the State of Mexico, covering 75,907ha with potential for lead, zinc, copper, gold, and silver; Delia in Sonora, covering 15,366ha with a focus on gold; and La Soledad in Durango and Sinaloa, covering 6,236ha with targets for copper, molybdenum, gold, and tungsten. 

She noted that Mexico needs a larger SGM to accelerate exploration, although the institution already has more than 1,300 employees and an annual budget of MX$1.3 billion. Harp explained that the SGM carries out over 48 exploration services focused on critical and strategic minerals, in addition to other research for the industry. She added that the exploration process increases in intensity and cost as it progresses, and many projects are halted when geological, analytical, or geophysical results do not support the potential, reflecting the high inherent risk of the activity.

Although the SGM has set limits for 2026 on projects, private investment is expected to play a more active role. Harp explained that bringing private actors back into exploration should occur “under conditions in which private companies can decide and contribute to a combined model,” said during the XXXVI International Mining Convention 2025.

Mineral Exploration Could Be Reactivated

Recently, Minister of Economy Marcelo Ebrard announced plans to accelerate mining permit approvals in 2026 to support large-scale exploration and meet rising global demand for critical minerals. “We reaffirmed our commitment to restart large-scale exploration next year, streamline pending permits, reduce processing times, and facilitate investment,” Ebrard said. He noted that in the current geopolitical climate, access to minerals and processing capacity is essential for competitiveness and supply chain stability. “Securing supply chains is a national priority,” he added, confirming that three new mining permits have already been approved, covering land-use authorizations for exploration and extraction as well as environmental impact approvals.

Mining Exploration: An Overview

Since 2022, Mexico’s exploration sector has slowed, with investment falling from over US$500 million in 2023 to an estimated US$400 million in 2025. The decline reflects global market pressures and domestic regulatory uncertainty, prompting companies to adopt a more cautious approach. A central concern has been the 2023 Mining Law reform, which reserves exploration rights primarily for the SGM and imposes stricter environmental and operational obligations on private firms.

While the previous administration implemented these measures, the current government has maintained a state-led model. President Claudia Sheinbaum has confirmed that no new mining concessions will be granted during her term, emphasizing sustainable development and strategic oversight. Even as the government works to streamline pending permits and support large-scale exploration within the existing framework, companies still face higher financial and legal risks due to increased royalties, tighter environmental standards, and budget constraints.

Despite these challenges, Mexico’s investment environment in mining has shown signs of recovery. In 2024, the country rose to 49th place in the Fraser Institute’s Mining Investment Attractiveness Index, up from 74th in 2023. The improvement was driven mainly by a stronger Geological Potential Index, which increased from 37.50 to 64.29 points, while the Policy Perception Index saw a modest rise from 35.02 to 39.78 points. The 2023 ranking had been Mexico’s lowest in 14 years.