Mexican mining industry expects investments to rise 15% in 2022
Posted On August 23, 2022
MEXICO CITY, Aug 23 (Reuters) – Mexico’s mining industry plans to invest $5.5 billion in 2022, up 15.2% from 2021, the Mining Chamber of Mexico (Camimex) said on Tuesday, but will remain below the record figure of $8.04 billion seen in 2012 amid challenging conditions.
Growing security problems, a high tax burden and the government’s decision to stop granting concessions for projects have kept investments in the sector from rising faster, said Jaime Gutierrez, the head of Camimex. As Mexico has become less attractive for investments, some 800 mining projects have been put on hold, he said.
“Maintaining sustained growth will depend on improving conditions for investment, supporting fiscal competitiveness, legal certainty and strengthening mining exploration,” he said in a presentation.
President Andres Manuel Lopez Obrador’s administration stopped granting new concessions, arguing that much of Mexico’s land has been handed over to the industry for speculative purposes.
Camimex includes Mexican mining firms such as Grupo Mexico (GMEXICOB.MX), Industrias Penoles and Compania Minera Autlan (AUTLANB.MX).
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Reporting by Noe Torres; Writing by Valentine Hilaire; Editing by Anthony Esposito and Leslie Adler