FDI in metallic mineral mining in Mexico recorded a year-on-year drop of 82.8% in 2024, to US$360 million, according to data from the Ministry of Economy.
According to the Mexican Constitution and laws, only the government may extract minerals. However, Mexican individuals or corporations may
FDI in mining
do so if they obtain a government concession. In addition, foreign investment in mining companies is permitted. However, the extraction of radioactive minerals is not permitted.
Metallic minerals have a luster of their own and conduct heat and electricity well. In Mexico, the most common are gold, silver, lead, copper, zinc and iron.
In their natural state, they are usually mixed. For example, gold with copper or lead with zinc. To separate them, mechanical and chemical processes are used to obtain pure metal.
What follows is the trend of FDI inflows in metallic mineral mining to Mexico, in millions of dollars:
- 2018: 758.
- 2019: 661.
- 2020: 341.
- 2021: 2,648.
- 2022: 869.
- 2023: 2,090.
- 2024: 360.
Mining Law
Regulations in Mexico allow foreign investors to have a majority interest in mining companies during the concession period. As such, these regulations encourage the growth of the sector. In particular, they facilitate broader exploration, encourage new sources of financing and promote the development of domestic technology.
On the other hand, the Mining Law establishes the terms for concessions. Private companies may explore for up to six years and exploit for up to fifty years.
In 2023, Mexico introduced significant reforms to its mining laws, collectively known as the “Mining Reform”. These reforms were published on May 8, 2023 and brought several key changes to the mining industry.
These are some of the main modifications:
Public bidding process: all mining concessions must now be awarded through a public bidding process. Concession holders must obtain all necessary environmental, social and labor permits before receiving the concession.
Concession term: The term of mining concessions has been reduced from 50 years to 30 years, with a one-time renewal option for an additional 25 years.
Scope of concessions: Concessions are now granted for specific minerals rather than all mineral deposits in a given area.
Water availability: The granting of a mining concession is conditional on the availability of water.