There is a lot of geopolitical uncertainty around the world at the moment and that could have varying effects on the industry. We cannot influence the commodity price so we must focus on controlling the factors that we can. One of the positive outcomes of the downturn is that mining companies have now become more streamlined and more disciplined in terms of their capital spending.

Innovation is of course a major issue because I believe the mining sector lags behind other industries in that regard and it is essential for the sector to strive to develop new technologies.

The industry must continuously find ways to compete more aggressively and efficiently in the global market. The only companies that will survive in these new political landscapes will be those that adapt best to the situation. Players need to stop seeking short term benefits in order gain better long-term advantages.

Mexico is preparing itself for important levels of growth in the next 10-15 years through its regulatory changes. In the short term, it may be causing problems in terms of adjustment but it is opening doors for the country’s strong long-term growth. We are going through a difficult time but I doubt the rough transition will last much longer. The country should be able to adapt fully to the new regulatory landscape in a year or so. It obviously takes time to get used to the new laws.

Ore body grades are declining around the world and many of the largest gold, silver and copper mines are more than 50 years old. Mining companies have to ramp up exploration because the industry needs new large-scale assets. Grades are continuing to fall at an alarming rate and some of the world’s biggest mines are reaching the end of their lifecycle so we need to start developing the next major assets to meet global demand for metals and minerals. Digitalization is also a significant challenge. Companies need to be more willing to accept new technologies and integrate them into their operations because this can translate into dramatic long-term savings.

Everything is in place for the mining sector to play a leading role in the national economy. We have so much geological potential, a strong group of experienced mining experts, fantastic interest from the foreign investor community and we have a strong mining law. The mining industry pays higher salaries than most of its competitors so it can be crucial in helping to develop Mexico’s most underdeveloped areas. It has the potential to overtake the oil and gas industry because there is no state-owned mining company that monopolizes the market like PEMEX. I believe the government should place it higher on its list of priorities. We can only hope that these funds, which are generated from the hard work of thousands of Mexicans, are used in the correct manner to benefit people.

Everyone is talking about the return of the mining industry but prices in 2017 will remain similar to those of 2016 as the world continues to undergo high levels of volatility. The geopolitical context will continue to create waves like it did last year. As low metal prices continue to be present in the market, companies are decreasing their exploration investment, which is putting the future of the mining industry at risk. By 2050, analysts estimate that the consumption of metal is going to grow drastically and the current commodity price market is not stimulating enough growth to satisfy these demands. A mine takes many years to develop - even decades. The market needs to improve quickly to help promote growth in the exploration market and ensure future demand is met.

The main challenge is in the excessive regulation to which the mining sector is subject, which is becoming ever stricter, driving up prices and making exploration and development slower and slower. This is only exacerbated by the negative perception of the mining sector perpetuated by the media and by the lack of certainty in mining legislation.

Although it has improved greatly, we still have significant infrastructure, service and safety deficiencies, which requires higher investment, costs and time to develop a project. A common problem, particularly with Canadian and foreign companies, is that many of the directors in charge of the projects and operations are not familiar with the country and have no experience working in Mexico.

Operators need to begin articulating strategies that invest in transformation but this does not necessarily have to involve millions of dollars to be efficient. The process can be done through collaboration. The first step toward innovation and sustainability is to recognize the importance of securing capital returns and community engagement. Companies have to understand that they cannot simply sit and wait for innovation to come around. We actually find that junior companies have an advantage, as most are in an entrepreneurial phase that is more open to innovation.