Despite its large mineral wealth, Mexico’s mining sector has struggled and investment has hit a 12-year low, rattled by political uncertainty and insecurity, writes the magazine Mining-technology´s reporter Patrick Kingsland. He took a look at the industry and asks what it can do to once again become an attractive investment opportunity.
But despite Mexico’s long tradition of mining and continued industrial potential – just 25 per cent of the country has been explored for minerals and oil to date – the sector is currently in an uncertain place, as new government policies, social unrest, insecurity and challenging access to finance undermine investment.
According to a report published in May by Camimex, Mexico’s mining industry chamber, investment in the sector hit a 12-year low last year with foreign and local companies spending roughly $383m on exploration, compared to $612m the year before.
“Mexico is losing its attractiveness as a mining jurisdiction globally,” chamber president Fernando Alanís told the local daily newspaper, La Jornada.
