Mexico Mining market to Eyewitness Huge Marginal Growth by 2030Posted by Mrudula Anil Karmarkar on April 28th, 2023 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. Increasing demand for precious metals, non-ferrous, and non-metallic products in the end-use industries such as construction, automotive, electrical & electronics, and aerospace & defense are expected to augment the market growth. To Request Sample Copy of this report, click the link: https://www.grandviewresearch.com/industry-analysis/mexico-mining-market-report/request/rs1 Investments in smart technologies to control costs and improve efficiency are projected to remain an important trend over the coming years. The shift toward a low-carbon economy and strict emission regulations is anticipated to have an impact on environmental standards and would lead to the scrutiny of mining activities. Mining holds vital significance for the Mexican economy. For instance, as of 2021, the mining industry contributed 3% to Mexico’s GDP and 9.6% to its industrial GDP. Furthermore, a growing number of joint ventures, increasing acquisitions, and rising investments by giant companies, such as Grupo Mexico, Industrias Peñole, and ArcelorMittal, to boost their mining operations in Mexico is expected to positively aid the market growth. Mexico Mining Market Report Highlights
The Mexican mining industry holds major importance at a global level. For instance, the Mexican export of minerals and ores to the world was around USD 18 billion in 2021. Growing demand for minerals is propelling investments in the country. For instance, in 2021, Industrias Peñoles invested USD 40.7 million in exploration, which was 21% more than the previous year. In this, USD 18.2 million was allocated for new projects and USD 22.5 million for the exploration of mines to replenish and increase the reserves. Metals such as copper, zinc, and lead find various uses in electrical & electronic applications. Growing demand for electronics is propelling its production in Mexico. For instance, in July 2022, Samsung announced investing USD 500 million in two of its plants in Mexico. The investment is expected to help the company to boost the production of household appliances. The market is competitive with the presence of various established players as well as small and medium players. The industry is facing acquisitions and capacity expansions to stay ahead of the competition. For instance, in March 2022, Asia Broadband (AABB), U.S. based resource company announced that it has acquired the Zodiac Gold Mine project in Buen Pais. Jalisco, Mexico. This acquisition is expected to help Asia Broadband (AABB) to enter the Mexico mining market. Investments in smart technologies to control costs and improve efficiency are projected to remain an important trend over the coming years. Furthermore, the growing shift toward a low-carbon economy has led major economies to enforce strict restrictions on mining activities. Automation is another key area that is likely to help miners reduce costs. Some of the key players in the Mexico mining market include:
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