The mineral industry was among the most profitable economic sectors of the country and

represented a major source of revenue for the Government. The continued world economic
recovery and the subsequent increase in mineral demand led to a 40.2% increase in the value
of mining production in 2010 compared with that of 2009. This change represented an
increase of 14.3% in the mineral industry’s contribution to Mexico’s GDP. employment in
the mineral industry increased by 5.3% as a result of the creation of about 14,299 new jobs in
the industry.

The leading mineral-rich areas where copper, gold, silver,and zinc (although not exclusively)
were produced, are located in the north and the west-central parts of the country. The main
oil-producing areas are located in the east and south (cámara Minera de México, 2011, p. 6;
U.S. central intelligence Agency, 2011).

Mexico was a leading world producer of several mineral commodities. in 2010, the country
was the world’s leading producer of silver, the second ranked producer of fluorspar,
and the third ranked producer of bismuth, celestite, and
sodium sulfate. Mexico also was the 4th ranked producer of wollastonite; the 5th ranked
producer of diatomite, lead, and molybdenum; the 6th ranked producer of cadmium; the 7th
ranked producer of barite, graphite, and salt; the 8th ranked producer of manganese and zinc;
the 11th ranked producer of feldspar, gold, and sulfur; the 12th ranked producer of copper
ore, and the 14th ranked producer of iron ore and phosphate rock (Brooks, 2011a, b; cámara
Minera de México, 2011, p. 73; carlin, 2011; corathers, 2011; Guberman, 2011; Kostick,
2011; Miller, 2011; Polyak, 2011; Tolcin, 2011a, b).

Minerals in the National Economy

The mineral industry was the third main source of foreign currency for the country after
crude oil exports and remittances by Mexicans living abroad; the other main source was
tourism. crude oil production had consistently decreased for several years, although in 2008,
Mexico’s crude oil exports achieved their highest value owing to the increase in the price of
crude oil in international markets. The mineral industry was a critical sector within the
Mexican economy (cámara Minera de México, 2011, p. 7–8). of the total mineral industry
production in Mexico in 2010, gold accounted for a 25.4% share followed by silver (20.3%),
copper (15.9%), zinc (9.9%), iron (5%), coke (4.9%), coal (4%), molybdenum (3.3%), lead
(3%), and other minerals (8.7%) (cámara Minera de México, 2011, p. 8). in terms of value,
the State of Sonora produced almost 22.97% of Mexico’s total nonfuel mineral production in
2010. The State of Zacatecas produced 22.94%; chihuahua, 14.05%, and coahuila, 11.30%.
The States of Durango and San Luis Potosi also contributed significantly to the value of
nonfuel mineral production (Secretaría de economiá , 2011, p. 60–92).

Mineral Trade

in 2010, Mexico was a net exporter of nonfuel minerals, in terms of value, registering a trade
surplus of $5.98 billion. This surplus was mostly because the country was a net precious
minerals exporter in 2010, as it had been for the past several years, and its precious metals
exports increased by 53.7% compared with those of 2009. The value of Mexico’s total
mineral production in 2010, excluding mineral fuels, was $13.900 billion, of which 92% was
metallic minerals and 8% was nonmetallic minerals (cámara de Mineria de México, 2011, p.
7–8).
Mexico’s principal export partners were the United States and canada (which were fellow
members of the North America Free Trade Agreement) and also, in order of the value of
trade, Spain, Japan, Germany, colombia, and china. Mexico’s principal import partners were
the United States and china; other significant sources of imports were, in order of amount of
trade, Japan, the Republic of Korea, Germany, canada, and Brazil (U.N. comtrade, 2012).

The role of china in the mineral production of Mexico was mostly as a consumer; china had
only three large investments in the Mexican mineral industry. China’s influence as a
destination for Mexican mineral exports, however, was considerable.

Industrial Minerals

Mexico was among the world’s top ten producers of industrial minerals. The value of the
country’s production of industrial minerals in 2010 was about $730 million (table 1;
Secretariá de economiá , 2012, p. 2).

Based on the value of production, the following nonmetallic minerals had the largest
increases in 2010, in order of increase: marble (58%), fuller’s earth (57.5%), kaolin (54%),
dolomite (53%), and graphite (23%). in terms of volume of output, celestite production
dropped by 13% in 2010 compared with that of 2009, and gypsum, mica, and perlite
production decreased by 38% each (table 1; cámara Minera de México, 2011, p. 74).

The Rofomex phosphate rock mine, which is located in

San Juan de la costa in the State of Baja california Sur and is operated by Roca Fosforica de
Mexico (a subsidiary of Grupo Fertinal S.A. de c.V), was reactivated in 2007 and had showed
an increase in production of phosphate rock of 1,962% in 2008 compared with that of 2007.
By 2010, production had continued to increase but at a slower pace, recording an increase of
6% in 2010 compared with that of the previous year. The mine had been inactive between
2001 and 2007, owing to damage to the installations by Hurricane Juliette and later because
of litigation between Fertinal and its insurers (table 1; insurance Journal, 2007).

Mineral Fuels

Coal.—Mexico’s production of coal in 2010 totaled 27.56 Mt, which was an increase of
19.6% compared with that of 2009. The main companies that produced coal in Mexico were
carbonifera San Patricio S.A. de c.V., GAN, Grupo México, and Materiales industrializados
S.A. de c.V. (Minsa). The distribution of production among the main concession holders was
as follows: GAN (84%), Minsa (13%), Grupo México (1.8%), carbonifera San Patricio
(about 1%), and the remainder, energia y Mineria del Noroeste S.A. de c.V. (table 1; cámara
Minera de México, 2011, p. 22).

Crude Petroleum and Natural Gas.—Although demand for petroleum had increased, crude
petroleum production by PeMex had been decreasing in the past several years, partly owing
to Mexico’s declining reserves and partly owing to a past history of lack of investment,
exploration, and development of new projects. in 2010, however, these issues appeared to
have been addressed, as the decreased production trend slowed; production was more than
940 million barrels, which was a decrease of less than 1%. Gross natural gas production also
decreased by less than 1%, practically retaining its previous level of production at 72,615
million cubic meters (table 1; Petróleos Mexicanos S.A. de c.V., 2011, p. 4).
Production

Mexico’s mineral production levels in 2010 recovered from the general decrease in the levels
of production of 2009. The production increases were led by ferromanganese (production of
which increased by 92.9%) followed by marble and silicomanganese (58% each), fuller’s
earth (57.5%), kaolin (54%), dolomite (53%), refined gold (49.4%), lead (33.5%) graphite
(29.8%), silver (24%) iron ore (19.9%), crude steel (19.7%), and zinc (16.4%), among others
(table 1). Mineral commodities for which production decreased during the year included talc
(production of which decreased by 97.4%), vermiculite (66.3%), gypsum and perlite (38%
each), strontium (13%), and common clays (9.2%) (table 1; Secretaría de economiá , 2011, p.
218–542). in 2010, crude oil production by Petróleos Mexicanos S.A. de c.V. (PeMex),
which was the state-owned oil monopoly, decreased slightly (by less than 1%) to about 940
million barrels in 2010. Gross natural gas production also decreased slightly, to 72,615
million cubic meters (table 1; Petróleos Mexicanos S.A. de c.V., 2011, p. 4).
Mexico's mining industry is an important revenue generator, contributing 8.3 percent to the
industrial GDP and 2.5 percent to the national GDP. It is a major job generator, supporting
over 370,000 direct jobs and over 1.7 million indirect jobs in 2017.

Experts say 70 percent of Mexico’s territory contains outstanding geological potential for
mining, and this potential for mining makes Mexico the world’s fourth-largest foreign direct
investment (FDI) destination for mining and the first destination of such FDI in Latin
America. Mexican central bank Banexico reports that Mexico’s mining sector received USD
1.02 billion in FDI in 2017. Most of these investments were made by companies from Spain,
Germany, Israel, the United States, and Canada—the latter having the largest overall stock of
mining investments in the country. Most of this FDI in Mexico is directed to mining gold,
copper, zinc and uranium. Companies like Goldcorp, Fresnillo PLC, Agnico Eagle, and
Alamos Gold produce over 100,000 tons of gold altogether every year. In 2017, one-fifth of
the world's production of silver, or four million tons, came from Mexico, mined by
companies including Fresnillo, Goldcorp. and Coeur D'Alene. Copper production amounted
to 463 thousand tons, produced mainly by Grupo Mexico, Cobre del Mayo, and Capstone.

The list of large Mexican-owned mining companies includes Peñoles, Minera Frisco, Grupo
Mexico, Peña Colorada, and Mexicana de Cobre. Other important Mexican-owned
contracting companies and service providers include well-known Signum, Cominvi, Alfil,
and GDI.

Mexico’s National Institute of Statistics and Geography, INEGI, tracks production in four
distinctive mining categories: precious metals, non-ferrous, metallurgy and non-metals.
Mexico’s mining production in 2017 amounted to USD 12.7 billion. Two major groups of
minerals account for 86 percent of total production: precious metals mining with USD 6.27
billion (49 percent of total production), and non-ferrous minerals with USD 4.63 billion (36
percent).

Mexico is a major producer of 12 minerals, three of which are critical for U. S. demand:
fluorspar, graphite and strontium. Mexico is the second-largest producer of fluorspar in the
world and still has a calculated reserve of 32,000 tons, with 72 percent of production
exported to the United States. Mexico has 3,100 tons of reserves of graphite and is the
world’s eighth-largest producer, exporting 33 percent of production to the U.S. The third
most important mineral imported by the United States is strontium. Mexico produced 56,500
tons in 2016 (the latest data available), and the United States imported 55% of that. Mexico is
the world’s second-largest producer of strontium.

Mexico Mining Production and Market Size

(Figures in USD billions)
2015 2016 2017 2018 (Estimated)
Total Local Production 13.45 12.61 12.78 13.08
Total Exports 14.6 15.68 17.48 17.88
Total Imports 8.12 7.95 8.33 8.52
Imports from the U.S.
3.12 2.13 1.56 1.60
Total Market Size* 6.97 4.83 3.63 3.72
Exchange Rates 15.89 18.68 18.91 19.09
*Total market size = (total local production + imports) - exports
Sources: INEGI and CAMIMEX
Mexico's mining industry is dominated by Canadian companies, but there is substantial
Mexican capital involved in some of the most important mines producing silver, gold, and
other important metals, as well as non-metal minerals. The presence of international suppliers
of machinery, equipment and parts is also numerous, and the market is very competitive.

Foreign suppliers to the mining industry have very few barriers to entering this market.
NAFTA has made it easy for U.S. suppliers to sell in Mexico without complications. In fact,
most of the bureaucratic burden falls on the Mexican importer, and U.S. suppliers must only
expedite their products to the arranged port of entry or U.S. border. U.S. exporters typically
quote EXWORKS or DAP prices to their Mexican clients (see the International Chamber of
Commerce website for a list of these INCOTERMS). (For future developments and
information on eventual agreements related to the NAFTA renegotiation, check the Fact
Sheets and NAFTA pages at the Office of United States Trade Representative
at www.ustr.gov.)

In Mexico, the mining industry is susceptible to criminal activity. Robbery and cargo
hijacking are risks which require larger investments in security services and provisions.
The Argentine Republic, or Argentina, is a sparsely populated country on the continent
of South America, with a population of 44.3 million. It is the 8th largest country in the
world, with an area of 2.8 million sq km which covers most of the southern half of South
America. Due to its length of almost 4000 km, the climate of the country ranges from
the rainforest-covered tropics of the north to the sub-Antarctic conditions in the south.
Argentina is a country of abundant natural resources, is a member of the G-15 and G-20
major economies and has one of the strongest economies in Latin America.
This article will give an overview of the major mineral resources present in Argentina, the
evolution of mining industry and what the future may hold for mining in Argentina.

The economy of Argentina is a high-income economy, Latin America's third largest, and the
second largest in South America behind Brazil.

The country benefits from rich natural resources, a highly literate population, an export-
oriented agricultural sector, and a diversified industrial base. Argentina's economic
performance has historically been very uneven, in which high economic growth alternated
with severe recessions, particularly during the late twentieth century, and income
maldistribution and poverty increased. Early in the twentieth century Argentina had one of
the highest per capita GDP levels in the world and the third largest economy in the
developing world. Today a high-income economy, Argentina maintains a relatively high
quality of life and GDP per capita.

Argentina is considered an emerging market by the FTSE Global Equity Index, and is one of
the G-20 major economies. GDP of Argentina is $578.7 billion (nominal) (24th, 2015)
$964.3 billion (PPP) (24th, 2015) and GDP growth 2.1% (2015) GDP per capita in 2015
$13,428 (nominal), $22375 (PPP).

Resources in Argentina
A century ago, Argentina was one of the richest countries in the world due to its natural
resources. However, political and economic turmoil have dogged the nation over the last 100
years, making it difficult for the country to retain its place as an economic superpower.
The important mineral resources present in the country include lead, zinc, tin, copper, iron
ore, manganese, petroleum, uranium, and lithium.
As a recognized ‘middle power’ with a ‘very high’ human development index rating,
Argentina has a stable government and has secure mining policies and legislation in place. In
a forward-thinking move towards sustainability, a law was passed in 2010 forbidding mining
in and around the large glaciers in the south of the country. A tax on the export of copper,
gold, and silver is also in place.
The majority of mining in Argentina is open pit mining and only two underground mines
currently open partly due to the lack of contractible drilling companies in Argentina.
In addition to traditional mining products, Argentina produces more biofuel than any other
country. However, the biofuel production in 2018 is expected to drop compared to previous
years. This is because of the anti-subsidy duties and anti-dumping duties set by US
government on biodiesel from Argentina. The Argentina government has also increased the
export duties on diesel from 8 to 15% from July 2018.
In 2010, according to the USGS, 16% of the country’s economy was accounted for by the
mining sector.
 Data Source: US Department of State and USGS. Percentage estimates collected in 2010.

Industrial Minerals
Argentina has the world’s third-largest Lithium reserve. The lithium is found in solutions or
brines that are extracted via aquifers. It is estimated that Argentina contains more than 80%
of the world’s reserves of lithium brine just in the Puna Plateau in the northwest. Lithium is
extremely important in the car manufacturing industry and due to this, there has been a large
increase in lithium exploration in the country. In 2010, Argentina was estimated to be the 4th
highest producer of lithium in the world.
One of the four most important mining projects in Argentina is focussed on lithium, the Salar
del Hombre Muerto-Fenix Project. This is owned by Minera del Altiplano SA (FMC Lithium
Co.).
These brines are also rich in boron and potassium. Boron is also present in large quantities,
from the lithium brine and other sources. Argentina was the second largest producer of boron
in South America in 2015.
Argentina is also approximately the world’s fourth highest producer of strontium derived
from celestite.
Cadmium is also extracted in economically viable amounts and can be used in the
manufacturing sector.

Metals
Important metals found in Argentina are copper, gold, silver, and zinc. The region of
Argentina adjacent to the Andes is possibly one of the most metal-rich areas in the world.
The Bajo de la Alumbrera mine, owned by Minera Alumbrera S.A., produces copper and
gold. The mine produced approximately 140,000 tons of copper ore in 2014.
The Cerro Vanguardia, owned by Anglo Gold Ashanti, produces gold and silver. In 2010,
6,500 kg of gold was extracted from here.
Another important gold mine is the Barrick Veladero mine.

Fossil Fuels
Though there is little coal to speak of mined in Argentina, natural gas and crude petroleum
are important resources.
The proven oil reserves in Argentina are the 32ndhighest in the world, estimated to be around
2.5 billion barrels in 2014. In 2010, the country produced 763 600 barrels of oil per day,
much of which was exported, making it one of the top 30 oil producing nations in the world.
Argentina is the 35th largest proven national reserve of natural gas, with around 430,000
million cu m.
Argentina also claims sovereignty over the Falkland Islands, or Islas Malvinas, a small group
of islands off the coast of mainland Argentina, which are currently being explored for oil and
gas reserves. Argentina renewed its claims over Argentina in 2012. In 2016, Argentina and
UK decided to take measures to co-operate and positively engage in order to improve the
economic growth and development of the Falkland Islands.
Uranium, which can be used as a fuel in nuclear energy, is also present in minable amounts.

Investment
Despite the wealth of resources, mining has not traditionally been big business in Argentina,
and the country has been more focussed on farming. Until the 90’s, most of the mining was
geared toward the construction industry. However, in recent years this has shifted slightly, as
in 1992 the government opened the mining sector to private companies. This led to a rise in
international trade, investment, and exploration. Since the 1970’s the mining exports of
Argentina have increased substantially, from US$70 million to over US$4019 million in
2016. This has been achieved primarily by the 4 important mines mentioned previously in the
article. The main nations that Argentina exports to are Brazil (21.1%), China (8.5%), Chile
(6.6%) and USA (5.1%).There are many perceived benefits of the mining in Argentina. The
mining market in Argentina is transparent, easy to access, and foreign and domestic investors
are encouraged. Due to the size of the country, there are still large areas that have not been
fully explored and so junior exploration companies can benefit from this. The mining and
power in Argentina , is closely linked to the growth of economic activities in the country.
Argentina is a country rich in mineral reserves and energy resources, which have not yet been
exploited to the extent of their potential.

Mining in Argentina
Mining basically tends to the production of minerals, from the search, extraction, processing
and marketing of minerals that exist in the Earth’s crust. There are metallic and non-metallic
minerals. Ores are, for example, copper, iron, aluminum, manganese, lead, zinc, gold and
silver, etc. There are non-metallic minerals such as asbestos, gravel and limestone; and fuels
like oil and coal.
Much of the mineral deposits in Argentina are close to the Andes. Where they are located, the
main mining districts in exploration and exploitation
The limitations of the domestic market; the lack of capitals for prospecting, technology and
infrastructure; the distance of the main metal fields from the industrial centers, do not foster
its development.
COMPARISION BETWEEN BOTH COUNTRIES

Although Argentina and Mexico are both located in the same region but when we compare
both the nations we can easily conclude that both of them are not similar in any way. Mexico
is although smaller in size compared to argentine but it is far more developed with proper
infrastructure and GDP per capita. Statistically Argentina has a greater crime rate than
Mexico but Mexico is a country with the largest American expatriate in the world.

When we look at both the countries we see that in terms of economy, personal finances,
modernization and healthcare, Mexico out ways Argentina and your national currency will be
higher here than in Argentina. Mexico is found to be cheaper than Argentina. However, in
Argentine the life expectancy is on the higher side (77years) than Mexico (76years). Having
mentioned that Argentina is found to be less income in equal than Mexico and in Mexico a
mere 46% live below the poverty line whereas the number in Argentina is half of that.

Moving on to the individual analysis Argentina is a country with annual revenue amounting
up to $121.30 billion making it the 27th in the list of highest revenue generating countries.
The GDP as per 2017 was $637, 430M with imports amounting up to $66,899M and exports
$58,427M casing a deficit of $8472M. When we look at Mexico we explore that their
revenue was higher than that of Argentina and their GDP as per 2017 amounted up to $1.13
Trillion leaving Argentina way back. But Mexico is a country that is currently depending on
more foreign good than locally produced ones therefore it has a trade deficit higher than that
of Argentina’s amounting up to $22750M. Being a country with a strongly established
primary sector and immense mineral supply Argentina’s main exports are from the
agricultural sector, followed by minerals and chemicals. Where as in Mexico’s case it main
exports are from the secondary sector through cars, electronic items, oil products etc. with
USA as its largest market.

When we move on to imports we can easily depict that Argentina needs more of capital than
consumer goods as it is still developing, it imports metal work, machines, Vehicles, oil,
plastic, equipment etc. with it man supplier being the United States. Mexico too imports
about 49% of its imports from the USA comprising of consumer and capital goods.

Looking at both the countries from another point of vision we can see that Argentina being
rich in minerals and other resources has an economy that is more primary based with not high
levels of development whereas for Mexico not being too sufficient in minerals and resources
has helped it to develop and evolve in an economy based on manufacturing and exporting.