Nota Destacada

Mining in Mexico has a 28.5% drop in investments

Mining in Mexico (excluding oil and gas extraction) captured $ 3.5 billion of investments in 2019, a drop of 28.5%, according to preliminary data from the Mexican Mining Chamber (Camimex).

Mexico has a substantial and varied variety of mineral resources and is one of the world’s leading producers of silver, bismuth, antimony, fluorite, graphite, barite, molybdenum, lead, and zinc.

Under the Constitution and applicable Mexican laws, mineral mining activities can only be carried out by the Government or, alternatively, by Mexican individuals or corporations, if they are granted a government concession.

In particular, foreign investment, including controlling interests, in Mexican mining companies is permitted by Mexican law, with the exception of any extraction of radioactive minerals.

Mining

In addition, foreign investment and mining regulations allow foreign investors to have a majority interest in any Mexican company engaged in mining activities during the concession period.

These foreign investment regulations promote the development of the mining industry, since they allow: a broader exploration; the discovery of new sources of financing; and further development of national technology.

According to the Mining Law (of Mexico), private companies are granted concessions to explore for up to six years and to mine for up to fifty years.

Mining and COVID-19

Several companies in the mining sector in Mexico are preparing for the restart of operations starting this May 17.

In general, global financial conditions and the global economy in general have experienced, on various occasions in the past and in the future, extreme volatility in response to economic shocks or other events, such as the current situation regarding the new coronavirus COVID-19.

Many industries, including the mining industry, are affected by volatile market conditions in response to the widespread outbreak of epidemics, pandemics, or other health crises.

Such public health crises and the responses of governments and private actors can lead to shocks and volatility in global economies, financial markets and supply chains, as well as declining trade and market sentiment and mobility. reduced people, all of which could affect commodity prices, interest rates, credit ratings, credit risk, and inflation.

 

pleca

Publicidad
Mostrar más
Botón volver arriba