Mexico Mining Report 2010

Date: May 22, 2010
Pages: 43
US$ 1,175.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Download

Download PDF Leaflet

Mexico’s mining sector contracted, in line with many other global mining industries, in 2009. Production of key commodities dropped against a backdrop of falling demand. However, with the worst of the global economic crisis widely believed to be over, we believe the scene is set for steady growth for the Mexican mining sector over our newly extended forecast period to 2014. Mexico is a major mining economy, with abundant resources of coal, copper, gold, iron ore, lead, silver and zinc, among other minerals. The country also has a world-class steel industry. The Mexican mining sector has proved attractive to foreign investment, notably from Canada and the US. The industry benefits from political and financial stability, coupled to a sound regulatory framework. The head of the country’s Chamber of Mines (Camimex), Manuel Luevanos, is hopeful that mining investment in Mexico should total US$13.1bn over 2010-2012.

New Data

For 2010 BMI has made significant changes to the way in which we forecast mining data. As well as using local statistics agencies and associations, we also draw on the expertise of the UN’s Industrial Commodity Statistics Database, the US Geological Survey and the World Bureau of Metal Statistics for our historical export and production data. We then forecast this data using our own proprietary econometric model. Human intervention plays a necessary and desirable role in our mining forecasting; experience, expertise and knowledge of industry trends and developments ensure that we can spot likely future changes and anomalous data that a purely mechanical model would not.

Country Overview

Mexico is home to reserves of coal, copper, gold, iron ore, lead, silver and zinc, among other minerals. It is the world’s second largest producer of silver, after Peru. It is a significant supplier of iron and steel. Most of Mexico’s natural resources have been extensively mapped and developed, so there are perhaps fewer new opportunities for miners than elsewhere in Latin America. The government is broadly supportive towards foreign investment in the mining sector. However, corruption and instances of weak judicial decisions have been commonplace in the past.

Industry Forecast

After a difficult 2009, where we estimate that the value of the Mexican mining industry shrank by 6.8% year-on-year (y-o-y), we believe that the scene is set for steady growth from the industry over our newlyextended forecast period to 2014. We believe the sector can grow at an average rate of about 2% to 2014. Much will depend on whether Grupo México can end the three-year stand-off that has seen production suspended at its key Cananea mine. If the deadlock can be broken, then there may be a faster increase in copper output, as the company will be able to implement long-delayed investment programmes.
Executive Summary 5
SWOT Analysis 6
Mexico Political SWOT 6
Mexico Economic SWOT 6
Mexico Business Environment SWOT 7
Global Mining Outlook 8
  Table: Rio Tinto’s Capital And Major Evaluation Projects For 2010 8
BMI Views 9
Risks To Outlook 11
Industry Trends And Developments 12
Overview 12
Regulatory Structure And Developments 12
Key Projects 13
Metals 13
Iron Ore 13
Gold And Silver 13
Copper 14
Minerals 15
Coal 15
Mining Business Environment Ratings 16
  Table: Americas Mining Business Environment Ratings 16
Political Environment 17
Domestic Politics 17
Regional Outlook 18
Industry Forecast Scenario 22
Commodities Forecast – Copper 22
  Table: BMI’s Copper Forecasts. 22
  Table: Copper Data And Forecasts, 2005-2011 24
Commodities Forecast – Aluminium 25
  Table: BMI’s Aluminium Forecasts 25
  Table: Aluminium Data And Forecasts, 2005-2011 28
Commodities Forecast – Gold 28
  Table: BMI’s Gold Forecasts 28
  Table: Gold Data And Forecasts, 2002-2009 (tonnes) 29
Mexico’s Mining Industry Forecast 30
  Table: Mexico’s Mining Industry Data And Forecasts, 2007-2014 30
Competitive Landscape 32
Company Monitor 33
Altos Hornos de Mexico 33
Grupo Mexico 34
Industrias Penoles 35
Global Assumptions 36
  Table: Global And Regional Real GDP Growth And Exchange Rates, 2009-2012 36
  Table: Global Assumptions, 2008-2014 37
  Table: Developed States’ Real GDP Growth, 2009-2012 38
  Table: Emerging Markets’ Real GDP Growth, 2009-2012 39
Business Environment Ratings Methodology 41
  Table: Mining Business Environment Indicators 42
  Table: Weighting Of Components 43
Skip to top

Mexico Mining Report 2013 US$ 1,295.00 May, 2013 · 66 pages

Ask Your Question

Mexico Mining Report 2010
Company name*:
Contact person*:
Request invoice
Your enquiry:
Please click on a Check Box below to confirm you are not a robot: