Mining in Mexico

Mexico: A Mining Giant

Mexico is a stable economic powerhouse with the world’s 12^th largest GDP (2023) [1] and is forecast to rise to become the 10^th largest by 2030. It is the world’s 9^th largest recipient of Foreign Direct Investment.

Mexico is a party to the  United States-Mexico-Canada Agreement (formerly NAFTA), a longstanding trade agreement that provides protections to foreign ownership of mineral concessions. 

Mexico s a global mining giant ranking in the Top 10 for production of silver, lead, molybdenum, zinc, copper and gold. The country’s mining sector accounts for 1.5% of national GDP, and supports 420,000 direct and 2 million indirect jobs. [2] [3]

Mexico is the 4^th largest recipient of foreign direct investment for mining, with Canada as the leading foreign investor. Between Q1-Q3 2023 the mining sector saw FDI of US$2.9 billion, the highest figure since 2013, representing 9% of all FDI in Mexico. [4]

Key Facts & Figures

• World’s #1 Silver producer, #5 Lead, #5 Molybdenum, #6 Zinc, #8 Copper, #9 Gold, #12 crude oil. [5]
• Mexico’s exports of minerals and ores amounted to US$17.6 billion (2022). [6]
• Mexico’s annual copper production has almost tripled between 2010 and 2022.
• Mexico hosts the world’s 5th largest in situ resources of copper.
• 2023 saw the highest level of FDI in Mexico’s mining sector since 2013 with seven major projects moving toward production [7] 
• Mexico’s diversified economy is integrated into neighboring N. American economies through memberships in the USMCA Trade Agreement (formerly NAFTA).
• Mexico’s economy stands to be one of the key beneficiaries of the US’ Inflation Reduction Act, which extends tax credits and investments to promote electric vehicles, renewable energy technologies, and critical minerals to select Free Trade Agreement countries, including Mexico.

Sinaloa: An Economic Powerhouse

The state of Sinaloa is Mexico’s largest exporter of agricultural projects and home to the 2^nd largest fishing fleet. It’s preferential geographic location on Mexico’s Pacific coast provides easy access to international markets, e.g. from the port of Topolobampo. International exports from Sinaloa totaled US$4.12 billion in 2022. [8]

Key Facts & Figures

• Sinaloa is home of Grupo Coppel, a national retail and wholesale chain with >100K employees, and Casa Ley, a leading national grocery retailer.
• Sinaloa attracts FDI from major investors around the globe, including TC Energy’s US$1.2 billion Topolobampo Pipeline and Proman’s (Switzerland) US$1.5 billion investment in an Ammonia plant.
• In December, 2023 Houston-based Transition Industries and the International Finance Corporation announced an agreement to invest >$2 billion to develop a world-scale methanol project in Sinaloa, with the La Entrada al Pacifico, the designated trade and transport district that also hosts Oroco’s Santo Tomas project.
• Additional FDI within Sinaloa includes investments from Delphi Automotive (USA), Sumitomo Contec (Japan), Walbro Engine Management (USA), Hikam (Japan), and InsurTech (Canada).
• Santo Tomas is located within the La Entrada al Pacifico, a multi-modal transport and trade corridor designated under a US Federal Act.

Recent Industry Coverage of Mexico and Sinaloa State