Mexican investments in mining exploration should reach its weakest level in 14 years, according to local mining chamber, Camimex. Mining investments this year is expected to decline to $399 million, as investor confidence has deteriorated, according to a media report from Reuters.
The figure represents a 25.6 percent year-over-year decrease, when compared to 2019, and the weakest level since 2006.
Mexican president Andres Manuel Lopez Obrador’s relationship with the business and industrial sector has been difficult, the media report noted. The Mexican leader canceled a major new airport and suggested the country could increase control over the energy sector.
“Mexico has lost its appeal as a mining investment destination,” Fernando Alanis, president at Camimex said at a recent conference.
Camimex includes several Mexican mining companies, including manganese and ferroalloys producer Minera Autlan.