The Base Metal Industry In Mexico Its Current Status And Implications For The Future ? Introduction

Mexico's mineral wealth has long been recognised and indeed has played a historically significant role on a world scale. The dynamics of the Mexican mineral industry have experienced a dramatic transformation especially over the last two decades. This transformation has mainly been instigated by the high growth rates and industrialisation of the Mexican economy since the 1960's. This paper focuses on the base metals sector of the industry which represents one of the major contributors to this transformation. The objective is to present a brief base metals review and to discuss some recent occurrences which pertain to this sector of the industry. This is followed by a discussion of mining's relevance in the current economic situation in Mexico. With this overview as background, the investment climate, primarily from a domestic investor's perspective and secondly in terms of foreign investment, is discussed. Finally, some recent government initiatives, including tax and accounting changes, are outlined. Any one of the sections of this paper can easily be developed into an extensive and indepth analysis; however, the intention of this paper is to provide the reader with a broad overview of the topics discussed.