Investment in mining exploration in Mexico falls 35.9%
Mexico received 382 million dollars of investments in mining exploration in 2019, a fall of 35.9% year-on-year, according to data from the Mexican Mining Chamber (Camimex).
Mining development risk is concentrated in the exploration stages and decreases as the operation stage progresses. In addition to large companies, companies called juniors (small and medium) are more focused on exploring.
In 2018, in mining exploration in Mexico, 596 million dollars were invested, a decrease of 2.6% year-on-year.
At its peak, Mexico achieved its best year in the arrival of investments in mining exploration in 2012, with 1,165 million dollars, while its previous lowest record occurred in 2006, with only 173 million dollars.
Mining exploration and land
In Mexico, the legal rights applicable to mining concessions are different and are separate from the legal rights applicable to surface lands.
Consequently, the holders of mining concessions must obtain the agreement of the owners of the surface lands to obtain adequate access to the mining concessions and the amount of compensation with respect to the mining activities carried out on said lands.
If a company cannot agree to the terms of access with the surface rights holder with respect to a particular claim, it can obtain access through a regulatory process in Mexico, however there is no guarantee that such process will be successful. timely or that the terms of such access will be favorable for that company.
In either case, access to company property may be limited, which can result in reductions in production and corresponding reductions in revenue.
Any of these reductions could have a significant adverse effect on the company, its business, and its results of operations.
Around 25% of the Mexican territory has been explored in detail, so there is a great opportunity for the development of new projects. Mexico is a leader in silver production and, year after year, places 12 to 19 minerals in the top 10 globally.
