Mining Investment Attraction Index: Mexico
Mexico was ranked 37th in the Mining Investment Attraction Index, prepared by the Fraser Institute on Mining Companies in 2022.
Each year, the Fraser Institute sends a questionnaire to selected mining and exploration companies worldwide. The Fraser Institute survey is an attempt to assess how mineral endowments and public policy factors, such as taxes and regulatory uncertainty, affect exploration investment.
In 2022, the Fraser Institute’s Annual Survey of Mining Companies covered a total of 62 jurisdictions assessed.
According to this survey, Mexico’s greatest weaknesses in terms of competitiveness for attracting investment in mining are safety, labor legislation and the tax regime.
In May 2023, the Mexican government published several modifications to laws related to the country’s mining industry, including changes to the Mexican Mining Law, the National Water Law, the General Law of Ecological Balance and Environmental Protection and General Law for the Prevention and Comprehensive Management of Waste (“Mining Reform”).
Investment in Mining
The American company Newmont expects that the Mining Reform will add significant uncertainty for foreign investors in Mexico and companies operating in the mining sector.
As a result of the Mining Reform, Newmont expects to find it more difficult to access/maintain land and water rights, which will have a negative impact on its mining activities within Mexico, raising concerns around exploration programs, the security of concessions and off-cycle community negotiations.
According to the Mexican Mining Chamber (Camimex), the value of national mining-metallurgy production totaled 316,956 million pesos (15,751 million dollars), an amount that represented a decrease of 5.3% compared to the previous year, reflecting the difficulties that the sector went through.
All in all, Mexico’s non-oil mining industry captured $2,737 million in Foreign Direct Investment (FDI) in the first nine months of 2023.
