Study by CIDE and Camimex Highlights Potential of Mexico’s Mining Industry
The Centro de Investigación y Docencia Económicas (CIDE) and the Cámara Minera de México (Camimex) conducted a study on Mexico’s mining sector, revealing that a 10% increase in operational efficiency could generate an impact of over 18,000 million pesos on national production. This improvement would also create a multiplier effect of more than 64,000 million pesos in the rest of the economy, resulting in a fiscal revenue increase exceeding 14,000 million pesos.
Key Findings and Recommendations
The study, titled “192 Reasons to Promote Conscious Mining in Mexico,” emphasizes the need for clear and sustainable laws, promoting exploration and innovation, as well as continuing to foster local training and employment. It also highlights the importance of Mexico’s energy transition, stating that without critical minerals, renewable energy production is impossible.
- Energy Transition and Critical Minerals: The study points out that Mexico’s energy transition is a crucial challenge. Although the national production of electric vehicles was only 2.8% in 2023, Mexico is projected to capture up to 67% of the Latin American market for electric vehicles by 2030. To achieve this, a solid industrial base and access to essential minerals are required.
- Mineral Composition in Vehicles: Both conventional and electric vehicles consist of 70% steel, which is produced from minerals like iron, silicon, and manganese. However, electric vehicles require 6.1% more critical minerals than conventional ones.
- Mining as the Backbone of Clean Energies: The study asserts that mining is fundamental to clean energy sources, including solar panels, wind turbines, electric vehicles, and advanced batteries.
Value Multiplication through Minerals
The analysis further explains that each mineral generates value across various industries. For instance, gold starts with an initial value of 96,000 million pesos and multiplies its impact along the value chain to reach a final value 20 times greater. Gold influences 14 key industries, such as electrical and electronic equipment, extractive industry machinery, furniture, automotive, jewelry, and toys.
Multiplication of mineral value along the transformation chain.
Key Questions and Answers
- What is the main focus of the CIDE and Camimex study? The study focuses on Mexico’s mining sector, highlighting the potential benefits of a 10% increase in operational efficiency and its positive impact on national production, fiscal revenue, and the overall economy.
- Why is the energy transition crucial for Mexico’s mining industry? The study emphasizes that without critical minerals, renewable energy production is impossible. Access to these minerals is essential for Mexico to capture a significant portion of the electric vehicle market by 2030.
- How do minerals contribute to various industries? Each mineral generates value across multiple industries. For example, gold’s initial value of 96,000 million pesos multiplies along its value chain to impact 14 key industries, including electrical and electronic equipment, extractive industry machinery, furniture, automotive, jewelry, and toys.
