Mexico’s rich mining industry is among the top leading-best prospect industry sectors for U.S. companies. This section provides a market overview and trade data.

Overview

As the world’s top producer of silver and twelve other distinct minerals, Mexico’s mining sector represents a leading opportunity for U.S. exporters. The industry has grown over ten percent annually since 2017. In stark contrast to other sectors that suffered from the pandemic for the last two years, Mexico’s mining production increased by 23 percent in 2021.

Mexico’s mining sector market value in 2021 was USD 1.81 billion. About half of Mexico’s mining production consists of the extraction of precious metals, with the remaining output composed of forty percent Non-Ferrous, five percent Metallurgy, and five percent ores. In 2021, production in mining reached USD 16.68 billion. Finally, Mexico is a large consumer of mineral fuels and in 2021 imported fuels were valued at USD 43 billion. About 65 percent of Mexico’s total mineral fuel imports originate in the U.S.

Mexico is a large exporter of mining products; with a trade balance surplus of USD 14.87 billion in 2021. Mexican exports of minerals and ores to the world totaled USD 18.9 billion in the same year, growing 8.73 percent since 2017. On the other hand, imports grew over 12 percent annually since 2017. Fifty-four percent of Mexico’s imports of minerals and ores come from the U.S. reaching USD 2.18 billion in 2021. The United States relies 100% on imported fluorspar, graphite, manganese, and strontium imports from Mexico and other countries.

Investment in Mexico’s mining industry has slowed as the current López Obrador Administration has placed a hold on issuing new mining concessions. The U.S. has a strong presence in Mexico’s mining industry with thirty-two companies, led by Newmont and Coeur Mining, having operations or significant investments in the country.

Total market size = (total local production + imports) – exports 
*2022 estimate of market growth of 2 percent, per IMF forecast 
Source: INEGI, OTEA

Leading Sub-Sectors

The following have been identified as the top sub-sectors in the mining industry with sales potential for U.S. minerals, machinery, tools, technology, and professional services.

Metallurgy

Grupo Mexico, Met-Mex Peñoles, and Fresnillo PLC are the three main mining producers in Mexico, accounting for 82 percent of market value. They are Mexico’s largest producers of metallic ores supplying the national steel industry in Mexico. Despite their strong supply capabilities, Mexico imported USD 1.8 billion worth of metal ores from the United States in 2021 (NAICS 2122).

Non-metallic ores

Mexico’s yearly imports of non-metallic mineral products including glass, clay, cement, lime, and gypsum from the United States exceeded USD 341 million, per the 2021 figures. This is the highest amount in ten years (NAICS 2123,).

Cement

The cement market in Mexico is made up of six major companies including, Cemex (46% market share), Holcim-Apasco (19%), Grupo Cementos Chihuahua (2%), Cementos Fortaleza (15%), Cemento Moctezuma (12%), and Cruz Azul (5%). Most of Mexico’s imports of this material comes directly from the foreign subsidiaries of these companies.

Opportunities

The U.S. Commercial Service Mexico is happy to assist you in exploring opportunities in the mining sector.

Exploration

The sector lacks enough suppliers of exploration services and perforation technologies. Mexican Government officials have expressed concern about the decrease in exploration investment over the last few years. In 2022, exploration will still be a priority for the Mexican Government in the mining sector.

Lithium Production

With the interest of developing of a local supply chain of processed lithium, battery manufacturers could start establishing plants in Mexico. However, it may take years to see a fully developed lithium industry. Mexico nationalized lithium mining and extraction in April 2022, giving a state-run company exclusive rights to mine lithium. The U.S. Geological Survey (USGS) reports it has identified resources of 1.7 million tons of lithium, positioning Mexico 10th globally. However, the deposits are largely held in clay substrates that are not yet accessible with current technology. Nevertheless, U.S. technology could be the key to unlocking the lithium believed to be in these deposits.

Capital Equipment

Mexico is the United States’ second-largest trade partner for construction and mining machinery, after Canada. Total U.S. exports to Mexico of machinery for construction, mining, and agriculture totaled USD 2.84 billion in 2021. (NAICS 33313).

Technology

There are opportunities for 3D modeling and mining simulation software applications in new operations. Leading mining companies will implement new technologies to reach Industry 4.0 status. Automated preventive maintenance solutions, condition monitoring, and autonomous production are some examples of solutions needed at the mines.

Repair

The best prospects in Mexico for selling replacement parts are specialized technicians and repair service companies with capacities to provide the fastest technical service and support. Dealers of replacement parts offering permanent inventory on consignment at mining locations are also preferred.

Environment

Mining activities in Mexico are required to comply with enhanced environmental and labor requirements. As a result, there are opportunities to supply environmental control products to the local mining industry.

Barriers

U.S. suppliers to the mining industry face no commercial barriers for entering this market. However, Mexico has experienced an increase in criminal activity. This is occurring in areas with working mines and causes continuous interruptions in the supply chain while it reduces the opportunities for new businesses and the market’s investment attractiveness.

Resources

Mexico Mining Chamber (CAMIMEX)                                                     

Assoc. of Mining Engineers, Metallurgists and Geologists of Mexico (AIMMGM) 

National Institute of Statistics and Geography (INEGI)                   

Chihuahua Mining Cluster (CLUMIN)                                                      

Zacatecas Mining Cluster (CLUSMIN)                                                     

Sonora Mining Cluster                                                                                    

Events

• 14 Congreso Internacional Minero Sonora, October 18 – 21 2022, Hermosillo, Sonora
• For other events, please visit: www.geomin.com.mx

Contacts

For more information on the mining and minerals industries in Mexico, please contact:

Mario Vidaña
Commercial Specialist
U.S. Commercial Service–Monterrey
Tel.: +52 (81) 8047-3118
Mario.Vidana@trade.gov