Despite upbeat results from companies operating in the country, official data released early this year shows that silver output in Mexico, the world’s largest producer of the precious metal, has dropped over the past two years.
Like much of the rest of the world, the country’s mining industry saw very few new mines opening up in the period, marked by a sharp drop in commodity prices. Companies that were already operating, in turn, placed emphasis on cost-reduction and improving capital management.
But there are strong signs of wheels turning in Mexico’s mining industry thanks to the ongoing price rally experienced by many of the key metals the country mines —silver, gold and zinc.
Analysts such as those at BMI Research suggest the particular composition of Mexico’s mining industry will help the country reap quick benefits, as mineral prices for its key domestic commodities are expected to perform well until at least 2020.
“We forecast Mexico’s mining industry value (MIV) to increase from $15.7bn in 2016 to $17.8bn by 2020, averaging 3.3% annual growth. This growth rate will be largely in line with regional peers,” BMI says in a report released Friday.
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