Mexico Mining Market Size, Share & Trends Analysis Report By Sector (Precious Materials, Non-Ferrous, Non-Metallic), And Segment Forecasts, 2023 - 2030

Report Overview

The Mexico mining market size was valued at USD 1.83 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 2.9% from 2023 to 2030. Increasing demand for precious metals, non-ferrous, and non-metallic products in the end-use industries such as construction, automotive, electrical & electronics, and aerospace & defense are expected to augment the market growth.

Investments in smart technologies to control costs and improve efficiency are projected to remain an important trend over the coming years. The shift toward a low-carbon economy and strict emission regulations is anticipated to have an impact on environmental standards and would lead to the scrutiny of mining activities.

Mining holds vital significance for the Mexican economy. For instance, as of 2021, the mining industry contributed 3% to Mexico’s GDP and 9.6% to its industrial GDP. Furthermore, a growing number of joint ventures, increasing acquisitions, and rising investments by giant companies, such as Grupo Mexico, Industrias Peñole, and ArcelorMittal, to boost their mining operations in Mexico is expected to positively aid the market growth.

The Mexican mining industry holds major importance at a global level. For instance, the Mexican export of minerals and ores to the world was around USD 18 billion in 2021. Growing demand for minerals is propelling investments in the country. For instance, in 2021, Industrias Peñoles invested USD 40.7 million in exploration, which was 21% more than the previous year. In this, USD 18.2 million was allocated for new projects and USD 22.5 million for the exploration of mines to replenish and increase the reserves.

Metals such as copper, zinc, and lead find various uses in electrical & electronic applications. Growing demand for electronics is propelling its production in Mexico. For instance, in July 2022, Samsung announced investing USD 500 million in two of its plants in Mexico. The investment is expected to help the company to boost the production of household appliances.

The increasing demand for computers, mobile phones, EVs, and battery storage has created a demand for lithium. Lithium mining has become crucial for Mexico. According to the U.S. Geological Service, Mexico has the ninth-largest identified lithium reserves (1.7 million tons) in the world. However, there is currently no commercial mining exploitation of lithium in the country.

A challenge that the mining industry is facing is that few deposits of high-quality ore deposits are still available to be explored. Most new deposits are difficult to reach and are in remote locations. As a result, there are rising risks, costs, and lead times associated with creating and running new mines. Due to the complicated geology and mineralogy of reserves, the grade of ore mined may differ from projections, which could negatively affect production and operational outcomes.

Sector Insights

Precious metals held the largest revenue share of over 47.0% in 2022 of the Mexico market. Growing consumer preference for fashionable and luxurious items is propelling the demand for precious metals. Owing to their rising consumption, key players are spending significantly on the exploration and development of existing green field projects. For instance, in 2021, Fresnillo plc spent USD 130.3 million on exploration expenses. Owing to this the silver reserves of the company went up by 1.2%.

In 2021, Mexico was the largest silver producer in the world. Furthermore, growing investments in silver mining are anticipated to boost its production in the country to reach pre-pandemic levels. Fresnillo, Pan American Silver, and First Majestic Silver are some of the prominent silver-producing companies in Mexico. Almost 50% of the silver produced in Mexico finds usage in industrial applications such as electronics, medicine, water purification, manufacturing, and solar.

Non-ferrous was the second-largest segment of the market in 20222. Increasing penetration of EVs is expected to increase the demand for non-ferrous products such as lead, copper, zinc, and molybdenum. These metals find use in EV-related applications such as charging stations, batteries, and wiring for the car.

Many non-ferrous metals find use in solar-related applications, which is increasing investment in the construction of solar power plants and propelling segment growth. For instance, in July 2021, the government announced that it is planning to develop the largest Latin America solar power plant in Puerto Peñasco. The plant is expected to have a capacity of 350 MW.

Key Companies & Market Share Insights

The market is competitive with the presence of various established players as well as small and medium players. The industry is facing acquisitions and capacity expansions to stay ahead of the competition. For instance, in March 2022, Asia Broadband (AABB), U.S. based resource company announced that it has acquired the Zodiac Gold Mine project in Buen Pais. Jalisco, Mexico. This acquisition is expected to help Asia Broadband (AABB) to enter the Mexico mining market.

Investments in smart technologies to control costs and improve efficiency are projected to remain an important trend over the coming years. Furthermore, the growing shift toward a low-carbon economy has led major economies to enforce strict restrictions on mining activities. Automation is another key area that is likely to help miners reduce costs. Some of the key players in the Mexico mining market include:

• AHMSA

• ArcelorMittal

• Coeur Mining Inc.

• FIRST MAJESTIC

• Fortuna Silver Mines Inc.

• Frestnillo plc

• GRUPO MEXICO

• Industrias Peñoles

• Newmont Corporation

• Pan American Silver Corp

Mexico Mining Market Report Scope

Mexico Mining Market Segmentation

This report forecasts revenue growth at the country level (Mexico) and provides an analysis of the latest industry trends and opportunities in the segment from 2018 to 2030. For this study, Grand View Research has segmented the Mexico mining report on the basis of the sector:

• Sector Outlook (Revenue, USD Million, 2018 - 2030)

  • Precious Metals

  • Non-Ferrous

  • Non-Metallic

  • Others