Mexico Mining Market Size 2024-2028 

The mining market size in Mexico is forecast to increase by USD 3.86 billion at a CAGR of 3.21% between 2023 and 2028. The mining sector in Mexico is experiencing significant growth, with increasing investments from market companies. This trend is driven by the discovery of new mineral and metal deposits, making Mexico an attractive destination for exploration activities. Innovative technologies are being incorporated into mining operations to enhance efficiency and productivity. Companies are leveraging advanced tools such as geophysical surveys, automation, and data analytics to optimize resource extraction and reduce environmental impact. The Mexican government's supportive policies towards the mining industry, including tax incentives and streamlined regulatory processes, further bolster this growth trajectory. Overall, the mining market in Mexico is expected for continued expansion, driven by a favorable business environment and the discovery of valuable mineral and metal resources.

What will be the Size of the Market During the Forecast Period?

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Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AHMSA: The company offers marine mining solutions for deep sea mineral exploration for harvesting small metallic rocks, and polymetallic nodules through its subsidiary Maersk Supply Services

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Alamos Gold Inc.
• ArcelorMittal SA
• Aurcana Corp.
• Coeur Mining Inc.
• Excellon Resources Inc.
• First Majestic Silver Corp.
• Fortuna Silver Mines Inc.
• Grupo Mexico SAB de CV
• Industrias Penoles SAB de CV
• Newmont Corp.
• Pan American Silver Corp.
• Frestnillo plc

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Type 

Precious metals segment is estimated to witness significant growth during the forecast period. Mexico is one of the worlds top producers of precious metals, including the largest producer of silver and a major producer of gold worldwide. Mexico has a largely favorable environment for the mining drills industry. The geological potential remains strong, with the country having a terrain that is among the most tectonically active and complex in the world. Orogenesis has pushed up and created mountain ranges all across Mexico, including Sierra Madre Oriental, Sierra Madre Occidental, and Sierra Madre del Sur. These three mountain ranges have some of the key metallogenic areas.

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Precious metals segment accounted for USD 9.82 billion in 2018 and showed a gradual increase during the forecast period. The demand for precious metals, such as platinum and gold in Mexico is anticipated to rise during the forecast period. Increasing disposable incomes in Mexico is anticipated to drive the demand for gold and silver, especially among the growing middle-class urban population. Apart from being used in jewelry, these precious metals are also seen as a great investment opportunity by investors, owing to their dynamic pricing in the business world.  As a result, these precious metals find applications in various sectors, such as electronics, electrical resistance thermometers, dentistry equipment, medical supplies, and others. Platinum is used in chemotherapy to treat certain types of cancer, while gold is used in the treatment of arthritis. With these precious metals having diverse applications across various industries, their demand is expected to increase. This will subsequently lead to increased mining activities related to precious metals in Mexico, in turn driving the growth of the mining market in Mexico during the forecast period.

Market Dynamics

In the realm of metal mining, a diverse array of resources fuels industrial progress. Copper, nickel, lead, and zinc are extracted from metal ores across the globe. These ores are often found in conjunction with coal, lignite, and anthracite, vital for energy production. Industrial sand is another crucial resource, used in construction and manufacturing processes. Companies like Newmont Mining, Peabody Energy, and Teck Resources lead the charge in sustainable mining practices. Their innovations in automated tunnel drilling streamline operations while prioritizing environmental stewardship. Beyond traditional mining, natural resources like salt, magnesite, sulfur, and asbestos play pivotal roles in various industries. Feldspar, boron, gypsum, talc, and graphite are essential minerals in ceramics, construction, and electronics. The market advancements in solar energy, solar pannel  and electrical electronic technologies aim to reduce dependency on fossil fuels while enhancing global sustainability efforts. The quest for precious metals continues to drive exploration and innovation in resource management worldwide.

Key Market Driver

Growing mineral and metal exploration activities in Mexico are the key factors driving the growth of the market. The mining industry is one of the key sectors of the Mexican economy. It plays an important role in regulating the supply of various mined commodity products, such as metals and minerals, which are used in different industries. The implementation of several infrastructure projects in Mexico has resulted in the country's domination in the global mining industry. As the demand for minerals and metals continues to rise, mining companies in Mexico are increasingly investing in exploration efforts to discover and access new deposits of metals and minerals. This trend has led to an increased demand for advanced and efficient mining.

Moreover, the advances in exploration technologies, including geospatial mapping, satellite imagery, 3D modeling, and data analytics, have improved the accuracy and efficiency of metal and mineral exploration activities in Mexico. Moreover, companies operating in the region have been following strategies such as mergers and acquisitions (M and A) to increase mineral and metal exploration activities in Mexico. For example, in November 2023, Coeur Mining stated that Coeur Mexicana, S.A. de C.V., a subsidiary of Coeur Mining, had entered into an agreement with a subsidiary of Fresnillo plc (Fresnillo) to purchase mining concessions next to the Palmarejo gold-silver complex in the Mexican state of Chihuahua. Thus, such strategies by companies will support mineral and metal exploration activities in Mexico and will drive the growth of the market in focus during the forecast period.

Key Market Trends

Rise in automation of mining operations is the primary trend in the market growth. Mining companies in Mexico are exploring ways to reduce the costs and time associated with mining operations. The mining industry is transitioning toward automation. Automation not only helps reduce the costs and time involved in mining operations but also improves worker productivity and safety at mining sites and helps streamline operations. With the help of automation, mine owners can collect all the data related to the performance of mining equipment. This data can be used to monitor and improve mining operations, leading to the efficient use of resources. In addition, automation helps achieve the optimal use of water and electricity in any mining site.

Moreover, electricity cost is one of the most expensive inputs in mining projects. The reduction in the use of electricity can offset these costs and result in a minimal impact of mining operations on the environment. The need to increase productivity, lessen environmental impact, and improve safety have all fueled the use of automation in the mining industry. Automation has also proven essential in tackling the difficulties of these environments as mining activities reach farther into the earth and more isolated areas. Thus, the rising automation of mining operations is expected to drive the growth of the mining market in Mexico during the forecast period.

Major Market Challenge

Stringent environmental regulations on mining activities are a major challenge to the growth of the market.  The overall mining industry is associated with several negative impacts on the environment, such as the formation of sinkholes, loss of biodiversity, soil erosion, land pollution, and erosion of exposed hillsides. Mining operations also hurt the health of mining workers and those people residing near mining sites besides leading to issues like the contamination of groundwater and surface water. Also, mining activities disturb wilderness areas surrounding the mining site by causing disturbances to wildlife and the destruction of ecosystems and habitats. Hence, mining companies worldwide must comply with stringent environmental regulations imposed by government or regulatory authorities or, sometimes, may even face a ban on mining activities during certain times of the year.

However, in Mexico, there are stringent rules and regulations, such as the Mining Control Act implemented by the Mexican government. Certain mining companies have also faced stiff opposition to extensive mining from local communities, which may lead to reduced mining activities. In 2023, the Mexican government passed a set of legislative amendments that together constitute a significant reform in the mining sector, which included a new mining law that shortens concessions in the mining sector. Mining concessions are granted through a public bidding process, but the period for these concessions has been cut from 50 years to 30 years and will be provided after the required labor, social, and environmental permits are obtained. Currently, concessions are only awarded for particular minerals, not for all of the mineral reserves in a certain area. Thus, the increasing stringency of laws and legislation related to mining activities in Mexico will negatively affect the growth of the market in focus during the forecast period.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Market Analyst Overview

The world of mining encompasses a wide spectrum of resources and technologies crucial for global industries. From stones used in construction to metal iron ores like gold, iron, and silver, each plays a vital role in economic development. Kaolin, ball clay, and potash are essential for ceramics and agriculture, while phosphate rock supports fertilizer production. Underground mining, connected minings and surface mining techniques are employed for extracting these resources, with advancements such as autonomous vehicles, drone technology, and intelligent sensors enhancing efficiency and safety. Companies like Vedanta, Vorkutaugol, and Ural Mining and Metallurgical Company are at the forefront, leveraging drilling systems such as Eprico and Boltec for exploration and production. In the realm of nonmetallic minerals, silica, diatomite, and perlite are essential, while metal prices influence market dynamics. The industry navigates challenges like social distancing norms and manages risks through derivative contracts and long-term supply contracts. Gold production and molybdenum mining contribute significantly to global economies, underscoring the sector's pivotal role in modern society.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Mexico
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies