The Growing Presence of Canadian Mining Companies in Mexico and the Dominance of Mexican Business Groups

Abstract

This article examines the changes in the Mexican mining sector over the past 20 years resulting from the implementation of more than 19 economic agreements endorsed by the Mexican government. The analysis highlights how the protection that these instruments have provided to the movement of North American capital has facilitated the positioning of Canadian mining companies through direct investment or co‐investment projects with Mexican and foreign companies. Unlike in other Latin American countries with an important extractive industry and a clear dominance of foreign investment, since 1994, Mexican and Canadian capitals have been relatively complementary, although Mexican mining companies continue to dominate the mining industry. Finally, the article examines the 2013 constitutional energy reform and its effects on the mining activity.