Mexico fell from position 34 in 2021 to 37 in 2022 in the Investment Attractiveness Index for the mining industry carried out by the Canada-based Fraser Institute.
This research center annually publishes a report that measures the perception of investors worldwide about the advantages that a territory or jurisdiction offers to mining investment.
With an evaluation of both the policies that regulate the sector, as well as the mining potential, the investment attraction index for Mexico fell from 66.46 to 60.16 units, its lowest score in at least the last five years. The rating scale goes from 0 to 100.
However, this classification has a constant change in the number of territories or jurisdictions that it evaluates year after year. For example, in 2021 there were 84 and in 2022 they dropped to 62.
The Fraser Institute Mining Survey is an informal survey that attempts to assess mining company executives’ perceptions of various optimal and suboptimal public policies that could affect a jurisdiction’s hospitality to mining investment.
The 2022 survey was distributed to 1,966 directors and executives of companies around the world engaged in mining exploration and development and other related activities, and was conducted from August 23 to December 30, 2022, before Mexico was released. approved a comprehensive reform on the mining industry.
This reform reduces the duration of a mining concession from a maximum of 100 to 55 years, allows mineral exploration only to the State and obliges communities to deliver a minimum amount of 5% of net profit.
At the end of last April, Mary Ng, Canada’s Minister of Small Business, Export Promotion and International Trade, expressed her concern about the mining reform in Mexico, while it was still in the process of being approved by the Mexican Congress, warning that it could affect the Canadian investment.
But then, on May 8, after the new Mining Law had been approved, the Secretary of the Economy, Raquel Buenrostro, said that Canada would avoid a panel of controversies on the subject of mining.
“Even they saw the Mining Law well and they were also happy with the energy consultation and that they did not see the possibility of going to the panel, Canada has just announced it, and we are already in the same conditions talking with the United States to see if we can the same results,” Buenrostro said then.
In the Fraser Institute’s index, when it comes to policies alone, Mexico experienced a decline of 20.6 points. However, he moved up the policy ranking from 54th (of 84) to 44th (of 62).
Miners expressed greater concern about Mexico’s legal system (+13 points), uncertainty regarding disputed land claims (+10 points), and uncertainty regarding the administration, interpretation or application of existing regulation (+ 7 points).
The Institute received 180 responses from individuals, of which 150 completed the survey in its entirety and 30 completed part of the survey. More than half of those surveyed (57%) are company presidents or vice presidents, and 25% are managers or senior managers.
Companies that participated in the survey reported exploration spending of $1.9 billion in 2022.
The best jurisdiction in the world to invest according to the Investment Attractiveness Index is Nevada, which rose from third place in 2021.
Western Australia, which topped the ranking in 2021, was ranked second in 2022.
