Mexico Mining Market Growth & Trends
The Mexico mining market is expected to reach USD 2.30 billion by 2030, according to a new report by Grand View Research, Inc, expanding at a CAGR of 2.9% over the forecast period. The growth of the industry is attributed to increasing demand for precious metals, which account for the major share of the market. Moreover, the growing demand for metals such as copper, zinc, and lead that find various uses in electrical & electronic applications are further fueling the market growth.
The mining sector is getting rapid exposure of technological advancements such as automation and digitization. These include the introduction of automated tunnel drilling and drilling systems, autonomous vehicles, drone, and intelligent sensors, which are designed to increase the efficiency and management of mining operations and reduce wastage.
For instance, in July 2022, Fresnillo, one of the world’s largest silver producers, placed an order to Eprico for underground mining machines. The order consists of Boltec and Cabletec rock reinforcement rigs, Boomer face drilling rigs, Simba production drilling rigs, Minetruck haulers, and Scooptram loaders.
Based on sector, the non-metallic minerals segment is anticipated to witness the fastest growth rate over the forecast period. The segment growth is attributed to widespread applications of products like kaolin, silica, and feldspar in various industries. Growing investments in the end-use industries of these products is propelling their demand and thus, mining.
Metal prices in Mexico witnessed a sharp decline from January to April 2020 owing to a sudden drop in demand caused by the outbreak of COVID-19. However, post-April 2020, prices recovered sharply owing to the restart of manufacturing activities with social distancing norms in place.
To remain competitive, mining companies are entering into long-term supply contracts with end users. Also, the companies use derivative contracts to protect them from market volatility. These fluctuations expose the companies to the risk of opportunity loss and mark-to-market fair value adjustments. These contracts could include forward sales, futures contracts, call options, and other derivative instruments.
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Mexico Mining Market Report Highlights
Based on sector, precious metals held a revenue share of more than 47.0% in 2022 in the market. This market share is attributed to growing consumer preference for fashionable and luxurious items
Mexico has wide reserves of gold and silver. As of 2021, Mexico stood 7th in the world, in terms of gold production. In 2021, similar to other prominent gold producers in the world, Mexico’s gold production fell too, and dropped down to 100 tons in 2021 from 101.63 tons in 2020
The non-ferrous held second-largest share of the market. Its growth can be attributed to increasing penetration of metals in electric vehicles (EVs). Growing EV production further propels the demand for metals such as lead, copper, zinc, and molybdenum
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