What Are the Priorities of Mexico’s Silver Mining Industry?

Mexico has long been recognized as one of the world's leading producers of silver, with a rich history deeply intertwined with the mining industry. The silver mining industry plays a crucial role in the national economy, contributing significantly to job creation and export revenues. However, the country needs to continue investing in sustainability, exploration and technology to sustain its production levels, agree industry experts.

The silver mining industry has played an unquestionable role in Mexico’s economic development. "During 80% of the past 120 years, Mexico has been the largest silver producer in the world,” says Armando Alatorre, Vice President, CIMMGM. 

In recent years, there has been a growing emphasis on environmental sustainability within the mining industry worldwide and Mexico's silver mining sector is no exception. Mining companies in Mexico are increasingly prioritizing sustainable practices to mitigate environmental impact and promote responsible resource extraction. “Currently, the biggest challenge the mining industry in Mexico faces is integrating sustainable measures that protect the environment and attract foreign investments,” says Salvador García, General Director, Starcore International Mines LTD.

Embracing sustainability also opens the door to changing the negative perception that a significant part of the public has about the sector. “Practicing responsible mining can significantly improve the public perception of miners, leading to increased investor interest in the mining sector,” says Carlos Alberto Silva, CEO, Santacruz Silver Mining LTD. This negative public perception has provoked an active disdain toward an industry that keeps afloat countless others: “it is important to recognize that mining is the cornerstone of the world's production chain,” says Silva. 

2023 is expected to be another solid year for silver demand, according to The Silver Institute. Industrial demand should reach an all-time high, boosted by continued gains in the market and healthy offtake from other industrial segments. Although bar and coin demand and jewelry demand are expected to fall short against last year's exceptional levels, both are forecast to remain historically high. However, “despite having highly rich mines in the country, Mexico needs to continue exploring its geological assets in order to sustain its accustomed level of production,” says Jesus Velador, Vice President of Exploration, Vizsla Silver Cup.

Supply, by contrast, is expected to achieve low single-digit gains. As a result, this year will also see another large deficit of silver, amounting to a projected 142.1Moz, which would be the second-largest deficit in more than 20 years. “Global demand for silver has surpassed Mexico's supply for the second consecutive year,” says Velador. 

To remain competitive in the global market, Mexico's silver mining industry is prioritizing technological innovation and operational efficiency. Digital transformation, automation and advanced data analytics are being harnessed to optimize mining processes, reduce costs and improve productivity. Despite these advances, the human factor will continue to play an essential role. “What ensures productivity within the mining industry is the human personnel, not the technology employed by them,” says Silva. 

In recent years, there has been a growing emphasis on environmental sustainability within the mining industry worldwide. Mining companies in Mexico are making efforts to reduce water consumption, manage waste effectively and implement reclamation and rehabilitation programs to restore mined areas. Unfortunately, “as time goes on, the exploration of silver mines becomes increasingly complex,” says Silva.

As Mexico's silver mining industry embraces sustainable practices, technological advancements and environmental stewardship, it positions itself to remain competitive in the global market and meet the rising demand for this precious metal. By prioritizing responsible mining and embracing innovation, Mexico's silver mining industry can secure a prosperous and sustainable future, contributing to both economic growth and environmental well-being.