Mining-related services in Mexico have attracted an annual average of US$537 million in Foreign Direct Investment (FDI) over the last seven years, according to data from the Ministry of Economy.
These investment flows went from 603 million dollars in 2023 to 551 million in 2024.
What activities are included in this productive branch? Among the participants are economic units dedicated mainly to the drilling of oil and gas wells on a contract basis, as well as economic units dedicated mainly to exploration or mining prospecting exclusively for oil and mining fields in any of the phases necessary for the exploitation of mining, oil and gas deposits.
Mining-related services
Although the Foreign Investment Law allows foreign citizens or companies to obtain mining concessions, Mexico’s Federal Mining Law provides otherwise. According to this law, only Mexican citizens or companies may receive concessions. For this reason, foreign companies must create a subsidiary in Mexico to access these concessions.
Here are FDI arrivals in mining-related services to Mexico, in millions of dollars:
- 2018: 290.
- 2019: 563.
- 2020: 779.
- 2021: 462.
- 2022: 510.
- 2023: 603.
- 2024: 551.
Mining concessions
The Federal Mining Law does not require the payment of discovery rights or royalties to the Government. However, there are some exceptions. First, a mining royalty of 8.5% and an extraordinary fee of 1% on precious metals apply.
In addition, in concessions or assignments contracted directly with the Mexican Geological Service and awarded by public bidding, a discovery premium or economic consideration is required.
Also, concession holders must pay mining concession fees. These fees are calculated on a per hectare basis and increase as the term of the concession is extended. Payments are made semiannually.
Mineral exploration and exploitation in Mexico is reserved for Mexican citizens or companies incorporated under Mexican law. To do so, they must obtain concessions covering both activities.
As of April 8, 2023, amendments to the Federal Mining Law, the federal government grants these concessions for a period of 30 years, counted from their registration in the Public Mining Registry. However, concessions granted prior to this reform maintain their original 50-year term.
In addition, concession holders may carry out both exploration and exploitation works.