Sustaining Capital Success in Mexico Mining: Five Key Strategies

Each year in Mexico, more than US$1 billion is invested in sustaining capital projects in the mining sector. A closer look across various projects reveals some recurring themes. Many mine owners want to improve operations and reduce water use, often rethinking their tailings management strategies and project footprints. Others are updating their technology to enhance efficiency and process performance. For mature operations facing declining ore grades, the focus shifts toward increasing throughput and recovery rates.

At the same time, rising metals prices are prompting many mine owners to reassess and, in some cases, restart assets that were once considered uneconomical. Ausenco is currently supporting several mine owners in Mexico who want to rapidly restart or expand their operations while market conditions remain favorable.

Opportunities Missed

The challenge is that many sustaining capital projects fail to deliver the full value they promise. Execution often falters because these projects require meticulous planning, careful sequencing, and integration into ongoing operations — all while minimizing downtime.

In some cases, the shortfall simply comes down to limited resources, whether people, financial, technical, or time. Projects are sometimes delegated to existing technology vendors, resulting in siloed efforts where risks can be poorly integrated and prioritization is unclear. Without a unified perspective, new bottlenecks start to emerge, and operational efficiency suffers.

Even when sustaining capital projects are well integrated, opportunities for improvement are often overlooked. Teams naturally gravitate toward familiar solutions, defaulting to engineering fixes rather than exploring process innovations. Similarly, the chance to make slightly larger investments for long-term gains, such as water reduction, enhanced safety, or reduced environmental impact, can be missed.

The value of getting sustaining capital projects right is massive. Our work planning and executing sustaining capital projects around the world suggests that the right capital program can often extend the life of a mine by 50%. Ausenco has also helped mine owners double throughput and significantly reduce operating costs.

Five Keys to Sustaining Capital Success

Drawing on decades of global experience supporting mine operations, we’ve identified five considerations for realizing value from sustaining capital investments. This is particularly relevant for Mexico’s mining sector, which deploys US$1 billion each year.

See the whole operation. Every modification to the circuit or ore body can impact the broader operation, potentially introducing new bottlenecks or exacerbating existing ones. Yet, such changes may also uncover opportunities, particularly where new technologies (such as ore sorting) can unlock productivity gains. Maintaining a holistic perspective from the outset helps ensure that impacts and opportunities are properly assessed, both for today’s operations and the mine’s long-term future.

Evaluate every option. The range of available technologies and processes to modernize or extend mine operations has expanded significantly, especially for assets more than a decade old. Each mine is unique, and technology choices must align with the ore body and processing context. Evaluating all feasible options, understanding trade-offs, and anticipating integration challenges are essential steps. Partnering with advisers who have a deep, cross-technology view can help mine owners make more informed, value-driven decisions.

Define the right scope. Defining scope, building the business case, and determining financial requirements can be difficult, especially for first-time sustaining capital project leads. Avoid “gold plating” and focus instead on scope elements that create tangible value. Don’t overlook the environmental and social outcomes that can enhance long-term project acceptance and investor confidence. A well-defined scope underpins successful execution and strengthens the case for capital allocation.

Balance speed with risk management. In today’s market, where commodity prices are climbing, mine owners are understandably eager to move quickly. Speed, however, must be balanced with robust risk management. Establishing a clear scope, realistic schedule, and proactive risk mitigation plan — covering operational, safety, and integration risks — helps prevent future delays and cost overruns. Risks managed early are disruptions avoided later.

Collaborate for long-term success. Sustaining capital projects, whether modest or large-scale, can be complex and may demand specialized capabilities beyond what’s available on site. External partners bring additional capacity, technical expertise, and strategic insight. The ideal partner can provide an end-to-end view, identifying opportunities, optimizing design, supporting execution, and transferring knowledge to build local capability and ensure enduring value.

Unlocking Value

With permitting challenges continuing to constrain new mine developments in Mexico, well-executed sustaining capital projects will play a pivotal role in driving sector growth. Extracting maximum value from the 10 figures’ worth of annual investment is essential, not only for mine owners but for Mexico’s economy and the global minerals supply chain.