Mexico captured 572 million dollars in mining exploration in 2022 and the Mining Chamber of Mexico (Camimex) projects that this capital will decrease 4.8% in 2023, to 544.4 million.
The exploration phase is essential to identify economically exploitable mineral resources and to give continuity to the mining industry, and thus maintain self-sufficient value chains in the immediate future, local and regional economies, generate employment and improve the living standards of the populations that depend on it.
These exploration activities are developed by companies with private capital and require state-of-the-art technology, as well as several years to be carried out, so large amounts of investment are necessary.
From Camimex’s perspective, to limit the development of mining exploration is to compromise the future of the industry and with it the supply of raw materials to more than 70 industries of the national productive apparatus, the generation of 3 million jobs, between direct and indirect, the quality of life of the mining communities and the generation of wealth through investment, decent salaries and fiscal contributions.
Camimex believes that it will be a great challenge to make the development of new projects viable, so working together with government authorities within the framework of the new mining legislation will be of key importance, as there is a very high risk that the dynamics of the development of new projects will be significantly affected.
In recent years, investment in exploration has been impacted by the lack of incentives for exploration in Mexico, which has led to a downward trend.
Mining exploration
Recently, a reform to the Mining Law and other provisions was approved, which, among other changes, modified the scheme and time period of mining concessions, which will now have a duration of 30 years, with an extension of 25 years.
At the end of this period, mining companies may participate again in the bidding for the same mining lot, with preference for the determination of the ruling, if the highest bid is equal, for a non-extendable period of 25 more years, giving a maximum total of 80 years.
The granting of new concessions, under the new scheme established by law, is necessary to continue developing a responsible industry, to guarantee the supply and well-being of future generations and that Mexico’s mineral deposits continue to contribute to Mexico’s growth.
However, in reality, a mining project requires long maturation periods, which can range from 10 to 20 years, so that exploration activities can be developed and the granting of a concession does not guarantee that it will become a mine, since, out of every 1,000 indications of mineralization, 100 go to an exploration stage, only 10 to an advanced exploration stage, and one becomes a mine, according to Camimex.