Mining Mexico: An Introduction To New Opportunities

Mining in Mexico has an immensely long tradition. In his first letter reporting to his sovereigns from Mexico in July 1519, Hernan Cortes wrote, "To our mind it is probable that this land contains as many riches as that from which Solomon is said to have obtained the gold for the temple ... " 1 But not only precious metals drew his attention; in 1524, short of tin needed for casting guns, he found it in Taxco. As an added bonus, those who went to find it "came upon a vein of iron which according to experts is of exceeding richness." 2 Since then, the mines of Mexico have yielded up enormous amounts of mineral and continue to do so. Mexico is one of the ten principal producers of minerals world-wide both in production volume and diversity. 3 Tens of thousands of tons of iron, sulphur, and coal come from its earth annually; it is the world's second largest producer of barite; third of antimony, fluorite, and graphite. 4 Copper, zinc, silver, molybdenum, arsenic and cadmium and others are wrested from its mines. The wealth is there; but maximizing its potential requires investment, technology, and markets that the government cannot itself provide. Thus mining, since the Mexican Revolution severely restricted by both law and policy, today looks to private investment to develop its potential. Beginning in 1989, Mexico's government cautiously moved to liberalize private sector involvement in mining; 5 using the experience gained from these initial regulatory changes, the current new Mining Law was adopted in 1992 6 and new Regulations were promulgated in 1993. 7