Metals

Mexico maintains a prominent position in mineral production, leading the world in output of silver among the metals and strontium (celestite) among the industrial minerals. Mexico is among the world's top five producers of (white) arsenic, barite, fluorspar, graphite, and sodium sulfate; beyond these, it is one of the top 10 producers of antimony, cadmium, copper, gypsum, lead, manganese, molybdenum, salt, sulfur and zinc. In the Western Hemisphere, only Mexico and Brazil produce manganese in significant quantities.

The notable gains in Mexico's metal mining sector versus the bleaker picture in the overall economy throughout 1995 arose from several factors, starting with a general improvement in metals prices in world markets. This alone furnished impetus to plans for new mines and expansion of existing production, but, simultaneously, the peso devaluation abruptly lowered relative operating costs, including payroll obligations, of all Mexican mines. Valuation of output continued at dollar-denominated prices set by world markets, thus enhancing peso revenues to levels higher than normal and fostering increased contributions to revenues by exports. In 1996, this general picture continued, with particular gains in the output of gold and ferrous metals. The output of industrial minerals, weakened by lack of domestic demand during 1995, improved throughout 1996 as construction picked up; this was particularly true for cement, which had dropped sharply the previous year. Production increased of barite, used in petroleum drilling operations, and sulfur recovered from crude oil.

Less conspicuously, but nonetheless significantly, the long program of privatization of mining properties inherited from two previous administrations (1982-88; 1988-94) bore fruit as newly privatized mines increased operating efficiency and expanded production at virtually the same operating costs. Furthermore, Mexico's mineral sector received infusions of hard currencies as exploration opportunities attracted more companies. At yearend 1996, Mexico emerged as having the largest number (372) of registered international mining enterprises, almost 300 of them from Canada and the United States and at least 150 of them from Canada alone. Driven by foreign and domestic companies, investment was brisk, with an estimated $800 million expended, an increase of 10% over that of 1995. Moreover, the Mexican Mining Chamber forecast that at least $3.7 billion more will be invested during the 1997-2000 period.

Mexico
Key Sectors
Mining/Metals: Production