Mexico Needs Structural Reforms In Mining

Mexico needs structural reforms in mining

14/12/2010 22:58
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According to estimates by the Mining Chamber of Mexico (Camimex), Mexico could receive investment for up to $13,083 billion dollars in the mining sector for the period 2010 – 2012.

However, this investment is at risk if structural reforms in the energy, fiscal and labor sector are not carried out. For this reason there is a risk that Mexico's mining sector lost profits obtained from the so-called 'mining boom' expected worldwide for the next decade, informed the Camimex.

Experts share this view. Doug E. Stretton, director of mining asset management of PriceWaterhouseCoopers (PwC) said that the strengths of Mexico to take advantage of global mining growth are its geographical location, its bilateral trade and potential to develop infrastructure that would allow the country to move its mineral exploitation abroad and obtain profits.

Mining sector has also begun to emerge locally. Only in 2010 Mexican mining production has become the fourth largest manufacturing sector in Mexico, behind oil generation, remittances and tourism.

According to data provided by Camimex it is expected that later this year, Mexican mining production hovers around $10 billion dollars in production value.

But this amount is only a sample of what the Mexican mining sector can represent for the country.

According to estimates of the Mining Chamber of Mexico, if reforms required for this industry are carried out, investment could reach $4,018 billion dollars for 2011 and $4,484 billion dollars for 2012. This would mean that production value could increase over the next two years.
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