Foreign investment in Mexican mining (extraction of metallic metals) fell at a year-on-year rate of 82.8% in 2024, to US$360 million, according to data from the Ministry of Economy.
Among others, metallic minerals include iron, gold, silver, copper, lead and zinc. In addition, mining companies carry out beneficiation processes, including crushing, screening, grinding, magnetic concentration, flotation and leaching, to obtain concentrates and precipitates.
Foreign investment in Mexican mining
In the last seven years, foreign capital directed to the extraction of metallic minerals has registered ups and downs.
Mexico has a long history of mining production; it is the world’s largest silver producer and has world-class gold mines. It is also a competitive producer of copper, iron, lead and zinc.
Foreign Direct Investment (FDI) in the extraction of metallic minerals in Mexico, in millions of dollars, is shown below:
- 2018: 758.
- 2019: 661.
- 2020: 341.
- 2021: 2,648.
- 2022: 869.
- 2023: 2,090.
- 2024: 360.
Mining regulation
In April 2023, Mexico approved a mining reform with new restrictions. It now prohibits activities in areas with bodies of water and natural reserves. It also permits the removal of tailings under certain conditions and restricts the use of national waters to transport materials.
In addition, it grants the Mexican Geological Service exclusive exploration rights. Mining concessions have a term of 30 years and can only be renewed through a bidding process. However, they can be revoked for non-compliance or mine closure.
In turn, new permits depend on the availability of water. The reform also establishes regulations on royalties and consultations with indigenous communities. Its constitutionality is currently under review by the Supreme Court.
Safety
Ternium’s mining operations in Mexico have faced legal and safety challenges. Some local communities have demanded more benefits or have tried to stop mining. Although the courts have not ruled against them, the law allows permits to be suspended while disputes are resolved.
In Aquila, violence increased due to the presence of criminal groups and internal conflicts. As a result, Las Encinas stopped operations in 2023. Jalisco, where Consorcio Peña Colorada operates, also faces security problems. If this situation continues, Ternium’s mining operations in Mexico could be affected or even shut down.