Loading ...Mexico’s large mining sector will likely see some recovery this year after 2020’s pandemic-induced slump, but a key industry leader said he fears rising political risk will drag down growth as companies focus new investments elsewhere.
Fernando Alanis, president of Mexican mining chamber Camimex, said in an interview that growing doubts on government polices like permitting and concessions will lead to at least a dozen companies to shift new investments to more inviting countries like Peru and Chile this year.
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“In 2021, I think we’re beginning to see other (negative) factors that have nothing to do with covid,” he said late on Thursday, specifically citing investor uncertainty.
Around a dozen companies, he said, “are saying that they’re going to make their next investments elsewhere” as Mexico’s regulatory and tax issues have made it less attractive than the South American mining hubs.
Trade publications have recently reported that firms with significant Mexican projects including Argonaut Gold Inc, Excellon Resources Inc and Sierra Metals Inc are likely looking outside the country to foster new growth.
https://www.mining.com/web/mexican-mining-chamber-warns-uncertainty-to-bring-investment-cuts/