Introduction

2021/22 Introduction

After more than a year of COVID-19, Mexican mining companies have learned to work safely to avoid contagion and are returning to prepandemic production levels. Metal prices and demand are in an upward trend, suggesting a stronger 2021 compared to the year before. However, challenges continue to hamper the industry’s growth.

Mexico is among the Top 10 producers of 17 minerals. The country ranks first in silver production, sixth in zinc, eighth in gold and ninth in copper. Mining is essential for the country’s development, representing 2.3 percent of national GDP and 8.3 percent of industrial GDP. Despite its great potential however, the sector’s attractiveness has been declining amid uncertainty during the administration of López Obrador following a complete halt in the granting of new concessions and constant pressure from the government regarding mining companies’ fiscal and environmental compliance. Authorities have also expressed an inclination for greater control over the sector and resources like lithium, which has worsened investment confidence, leading some companies to other jurisdictions perceived as mining-friendly.

Despite the multiple challenges facing the industry, the sector is one of the main pillars of the Mexican economy and the country remains an attractive destination for projects. Its wealth of resources, mining culture and strategic geography make it a solid choice. In addition, through new technologies and the modernization of processes, the industry is becoming smarter, more efficient and more responsible. Although the lack of government support and an adherence among some companies to traditional operations have made the transition to Mining 4.0 slower compared to other mining countries, the sector is on the right track.

Mexico Mining Review 2021 presents in-depth analyses, interviews and insights on the main challenges and opportunities facing the country’s mining sector, as well as the external factors that are shaping it. Recovering investor confidence, a change in the relationship between companies and the government, improving regulatory frameworks and the adoption of better technologies are among companies’ main concerns. However, if properly addressed, Mexico could further enhance its position as a major mining destination.