Mining is the oldest industry in México, yet only 20% of its territory has been explored in the search of mineral resources which means that Mexico still remains a land of mining oppurtunities.
28/02/2008 ::
Under the constitution, minerals were part of the national patrimony. Today 137 foreign enterprises are contributing to the investment and exploration of México´s mining sector which shows that many new investments are just now beginning to come on line. As over one third of the worlds exploration drilling activities are directed to Latin America, the continent will remain in strong focus for all technology suppliers.
The industry gives great opportunities to export and local production of machinery for mining, coring and minerals processing.
Industry drivers
Obvios
- International demand and high (rising) prices for mineral raw materials boost production
- Between 2000 and 2005 the prices of metal increased in the following percentages: gold 52%, silver 33.5%, lead 109.7%, copper 72.8% and zinc 10.6%.
· Latin America remained as the main destination for investment capitals for
mining exploration, with a 21.8% share.
- Sustained direct foreign and domestic investment, government advocacy, and higher prices for most mineral resources are all positive signs and reflect a continuing optimism toward Mexico´s mining industry.
Non-obvious
- Industry investments rose 104% in 2004 from 2003 – will keep on rising
· Governments investments increased 70 % in 2004 from 2003§ These investments generated 6,953 jobs and 27,319 jobs were able to be maintained, in other words a total 34,272 jobs were supported
Expected changes
A new Mining law (published in 2005) gives greater legal certainty to investors and facilitates remarkably legal processes related to exploration and exploitation of mines
will promote opportunities to our clients through a boom in the industry:
-> Results expected to increase the infrastructure of R&D in the mining sector
-> Competition and modernization expected to rise
-> Promotes the incorporation of new corporations and new uses of metals and minerals, by including new technologies and processes, as well as by generating products with a high added value
Non-expected
- Sustained direct foreign and domestic investment, government advocacy, higher mineral prices
- As Mexico´s large mining firms continue to earn profits, the Mexican Government considers that small and medium-size mining operations will become leaders in the development of new reserves and projects.
Source: Finpro Mexico