Intro: Along with the many tasks operators must balance, such as maximizing productivity and assuring the entrance of new projects to replace aging ones, companies must also prioritize the establishment of a strong financial structure to continue attracting investors and capital. Access to funding is a hot topic in the industry as both major and junior players are on the hunt for new projects in light of the industry’s comeback. However, in 2016, companies invested 18.9 percent less into the Mexican mining industry in comparison to 2015. To make sure capital stays in the country and does not stray to competing mining jurisdictions, the industry’s financial health must be held to a standard similar or higher than those seen in countries like Canada where most banks and investors are familiar with the sector’s cycle and its benefits. It would facilitate national access to capital for junior and major miners.
This chapter explores the most pressing financial challenges that the mining sector faces and highlights best practices used by leading commodity traders. It also shares insight into the country’s logistics and its ability to foment trade through the perspective of leading service providers and operators.
Key Question: How can Mexico improve its ability to attract FDI in comparison to other mining jurisdictions and strengthen the financial health of the industry?