MEXICO: An Introduction to Energy & Natural Resources: Mining

The mining industry in Mexico has long been, and remains, a cornerstone of the nation’s economy. The country is endowed with a vast and diverse range of mineral resources – including silver, gold, copper, zinc, lead, fluorite, manganese and barite – distributed throughout its territory. This geological wealth, paired with Mexico’s favourable mining geography, supports the sector’s strategic importance and long-term potential.

Mexico’s mining strength lies not only in the abundance of its deposits but also in the variety and quality of its resources, which position the country as a global leader in the production of several key minerals – most notably silver, for which it ranks first worldwide. In addition, the country benefits from a skilled, experienced and resilient workforce, which adds to the sector’s competitiveness and capacity for innovation.

Together, these factors make Mexico an attractive and reliable destination for mining investment, particularly for companies focused on sustainability, community engagement, and long-term value creation.

However, as of 2025, Mexico is undergoing a profound political, legal and economic transformation that is redefining the framework for doing business – particularly in strategic sectors such as mining, energy and infrastructure. This environment of structural change presents both significant opportunities and new challenges for investors, legal advisers and economic operators, both domestic and international.

Following the 2024 general elections, the new federal administration – backed by a congressional majority – has advanced an ambitious constitutional reform agenda aimed at reshaping the balance of power between government branches, with particular focus on the judiciary. Officially, the reforms seek to democratise access to justice and combat corruption in the judicial system.

Among the most significant reforms are:

• The popular election of judges, magistrates and Supreme Court justices, implemented for the first time in June 2025, under the oversight of the National Electoral Institute.

• The reduction in the number of Supreme Court justices from 11 to nine, and the imposition of a single, non-renewable 12-year term.

• The dissolution of the Federal Judiciary Council and its replacement by two new bodies: the Judicial Administration Office (handling court operations) and the Judicial Disciplinary Tribunal (in charge of investigating and sanctioning judicial misconduct).

While framed as democratic reforms, these measures have raised concerns among academic institutions, the private sector and international observers about the erosion of judicial independence and the weakening of institutional checks and balances. A growing perception of political influence over the courts poses risks to legal certainty – particularly in matters related to constitutional protections (amparos), contract enforcement and property rights.

Economically, Mexico is showing signs of resilience amid these transitions. According to the National Institute of Statistics and Geography (Instituto Nacional de Estadística y Geografía or INEGI), the Mexican economy grew by 1.4% in 2024 – moderate growth compared to previous post-pandemic recovery rates, and slightly below the regional average. Notably, the mining sector increased its share of GDP from 2.75% in 2023 to 2.77% in 2024. The total value of national mining and metallurgical production grew by 19.6% year on year, marking a recovery after two years of contraction, according to the 2025 Annual Report of the Mexican Chamber of Mining.

Not only is Mexico the world’s top producer of silver, it ranks among the top ten producers of gold, copper, zinc and lithium.

The peso-dollar exchange rate has remained relatively stable around MXN18.50 to USD1, although it remains sensitive to domestic political shifts and international trade dynamics. This stability was challenged in early 2025 by a new round of tariff rates introduced by the US administration, which fuelled market uncertainty and reinforced the role of precious metals as safe-haven assets.

Despite these headwinds, Mexico continues to attract foreign investment. However, net inflows have slightly declined in 2025, particularly in regulated sectors like energy and mining. This trend is largely attributed to increased regulatory scrutiny, community resistance to extractive activities, and a perceived decline in institutional predictability.

Still, mining remains a pillar of the Mexican economy. Not only is the country the world’s top producer of silver, it ranks among the top ten producers of gold, copper, zinc and lithium. The sector accounts for approximately 2.4% of national GDP and directly employs over 350,000 people, while generating a robust value chain – particularly in northern and central Mexico.

Nonetheless, doing business in the sector has become more complex. Key factors contributing to a more restrictive environment include:

• stricter environmental, social and fiscal compliance frameworks;

• increased government scrutiny of mining concessions, royalties and contractual conditions;

• heightened tensions with local communities demanding greater participation and environmental accountability; and

• more frequent litigation and administrative disputes, particularly around environmental impact assessments (EIAs) and water rights.

These dynamics have extended the timeframes and increased the costs associated with launching, expanding or divesting mining projects. Legal processes now unfold within a judicial system undergoing profound institutional change, further heightening operational uncertainty.

In this context, a proactive, interdisciplinary legal approach is essential. Investors must go beyond traditional legal compliance and integrate social, environmental, and reputational risk management into their strategies. The design of robust contractual frameworks, implementation of effective corporate governance structures, and readiness for complex dispute resolution in an evolving legal environment will be critical in protecting investments and ensuring long-term viability.

At the same time, these challenges present unique opportunities. Investors and operators who are well advised, strategically positioned, and committed to transparency and sustainability can differentiate themselves and thrive in Mexico’s evolving mining landscape. The country’s vast mineral wealth, geographic proximity to major markets, skilled labour force, and integration into international trade frameworks (such as the United States-Mexico-Canada Agreement or USMCA) continue to offer strong competitive advantages.

For investors and operators navigating this environment, specialised legal counsel becomes not only a safeguard but a driver of value. Navigating today’s Mexico requires an integrated understanding of legal, political, regulatory and community dynamics. Expert legal advisers who understand the evolving landscape can help mining companies structure defensively while identifying growth opportunities aligned with Mexico’s strategic priorities.

With sound planning, strategic insight and a long-term vision, the mining sector in Mexico offers not just resilience, but renewed potential in an era of transformation.