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Exploration & Development Mexico is among the world’s most important exploration and development destinations for the mining industry. The country is rich in minerals and has a strong mining culture that contributes to profitability. New techniques and technologies are opening the door to improved and more precise exploration, and Mexican miners are eager to seize the emerging opportunities. In terms of new project development, mining companies continue to build new mines but at a slower pace as the optimization and expansion of existing assets are further analyzed. New trends to achieve responsible mining are being explored. By implementing ESG practices, mining companies become more efficient, socially responsible and sustainable, which is necessary to reduce risks and adapt to the new challenges of the industry. The Mexican mining sector is embracing these ESG trends as important projects get underway in 2021, many of which were delayed due to COVID-19. However, the pandemic has not been the only challenge for the industry. Exploration has slowed dramatically since the elimination of the deductibility of preoperational and exploration expenses with the 2014 reform, causing a 40 percent decrease in investment for exploration. Additionally, the negative view of the López Obrador administration toward new concessions has made it difficult to continue developing projects in the country.
