Mexico Eyes Silver as Next Target in Resource Nationalism Push
Mexico surpassed China in 2023 to become the leading trade partner of the United States. Silver cements Mexico's Energy Future.
Mexico's recent decision to pause relations with US and Canadian embassies may be interpreted as a strategic move to assert its sovereignty over valuable natural resources, particularly silver. This action echoes Mexico's historical efforts to nationalize its oil industry and recent moves to control lithium reserves.
Silver: A Critical Resource
Silver plays a crucial role in the energy sector due to its unparalleled conductivity properties. It is extensively used in:
Batteries
Electrical wiring and connectors
Solar panels (for reflectivity and conductivity)
Mexico has replaced China as USA #1 trading partner so the timing of this move is very convincing.
source - https://www.ie.edu/insights/articles/the-united-states-buys-more-from-mexico-than-from-chinaat-last/
As the world shifts towards renewable energy sources, the demand for silver is expected to increase significantly, making it a strategic resource for Mexico's future economic development.
Nationalization Strategy
By distancing itself from foreign diplomatic pressures, Mexico may be laying the groundwork for a more assertive control over its silver reserves. This move could be seen as a continuation of President López Obrador's broader agenda to strengthen national control over key resources:
Oil nationalization: Mexico has a history of protecting its oil industry from foreign influence.
Lithium control: Recent legislation has placed lithium under state control.
Silver focus: The current diplomatic pause may signal intentions to extend this approach to silver resources.
Implications for Energy Sovereignty
The emphasis on silver could be part of a larger strategy to secure Mexico's position in the global energy transition:
Renewable energy production: Controlling silver supply could give Mexico leverage in solar panel manufacturing.
Energy storage: Silver's role in battery technology makes it crucial for energy storage solutions.
Economic independence: By securing these resources, Mexico aims to reduce reliance on foreign technology and investments.
This diplomatic maneuver, while ostensibly about judicial reforms, may indeed be a calculated step towards strengthening Mexico's control over its valuable silver resources. By doing so, Mexico positions itself as a key player in the future of renewable energy technologies and seeks to ensure that the benefits of its natural resources primarily serve national interests.
This is one of those situations where you have to be skilled at discerning why Mexico is going down this profitable road. It’s simply in their self interest to nationalize Silver.
No Mexican politician or any politician will publish their intent to nationalize but the community rallies are chalked full of this rhetoric and you have to be a skilled listener to read between the lines.
If you do your own research you will have difficulty finding published reports substantiating this resource nationalism, there is no specific information about
Mexico's plans to secure its silver resources is taking pushback from powerful investors in North America and other international criticism. We can analyze some relevant trends and policies that may impact Mexico's approach to its silver resources:
Increased government control: Mexico has recently implemented new mining laws that give the government more control over mining and water resources. This suggests Mexico may be taking steps to exert greater sovereignty over its mineral wealth, including silver.
Resource nationalism: The current Mexican government has adopted policies based on "resource nationalism". This aligns with the idea of securing national control over valuable resources like silver.
Restrictions on foreign investment: New mining reforms have created uncertainty for foreign investors and exploration companies. This could be seen as an attempt to limit foreign influence over Mexico's mineral resources.
Focus on sustainability: There is growing emphasis on environmental sustainability in Mexico's mining sector. This may impact how silver resources are managed and extracted going forward.
State involvement in critical minerals: Mexico has nationalized lithium reserves and created a state-owned lithium company. While this doesn't directly apply to silver, it shows a willingness to assert state control over strategic minerals.
Reduced concessions: The government has tightened regulations around mining concessions, reducing their maximum length and making them harder to obtain. This gives the state more leverage over how silver and other mineral resources are developed.
These trends suggest Mexico is taking a more assertive approach to managing its mineral resources overall. The government appears to be prioritizing national control and sustainability over unrestricted foreign investment. This has also created uncertainty in the mining sector and may pose challenges for future exploration and development of silver resources.
Mexico’s Secretary of Environment
María Luisa Albores González has made a significant impact as Mexico's Secretary of Environment and Natural Resources since her appointment in 2020. Her tenure has been marked by a focus on environmental protection and sustainable development, particularly in the realm of mining operations.
Albores González has built an impressive grassroots coalition known as the "Defenders of the Territory." This diverse group brings together intellectuals, activists, farm workers, laborers, students, professors, and campesinos, all united in their commitment to protecting Mexico's natural resources and promoting sustainable practices.The coalition's primary goals include:
Advocating for responsible mining practices that minimize environmental damage
Promoting Mexico's energy independence
Pushing for the nationalization of silver resources to benefit the Mexican people
Combating the lingering effects of colonization and exploitation
Under Maria Albores González's leadership, the Defenders of the Territory have been instrumental in raising awareness about environmental issues and pushing for policy changes. Their efforts have led to increased scrutiny of mining operations and a greater emphasis on sustainable development practices.
Maria Albores González's approach represents a shift towards more inclusive environmental policymaking, incorporating voices from various sectors of society. This grassroots movement has gained traction, particularly in rural areas where mining operations often have the most direct impact on local communities and ecosystems.
While the coalition's goals are ambitious, they reflect a growing sentiment in Mexico about the need to balance economic development with environmental protection and social justice.
Maria Albores González's leadership has provided a platform for these voices to be heard at the highest levels of government, potentially shaping Mexico's environmental and resource management policies for years to come.
Mexico’s New President is considered even more in favor of Nationalizing Silver and part of her Environmental leaning platforms
The current president of Mexico is Andrés Manuel López Obrador, often referred to as AMLO.
Claudia Sheinbaum has been elected as Mexico's next president in the 2024 election.
Sheinbaum will be Mexico's first female president.
She will take office on October 1, 2024.
She is politically aligned with AMLO
Transition Timeline
June 2, 2024: Claudia Sheinbaum won the presidential election.
September 1, 2024: The new Mexican Congress will be inaugurated.
October 1, 2024: Claudia Sheinbaum will be sworn in as the new president of Mexico.
It's worth noting that this presidential transition is two months shorter than usual, as the inauguration date was moved from the traditional December 1 to October 1.
Key Challenges
The incoming president will face several challenges:
Managing the relationship with outgoing president López Obrador, who remains influential within the Morena party.
Addressing security issues, including high homicide rates and organized crime.
Tackling environmental concerns, particularly water insecurity and climate change.
Navigating the relationship with the United States, especially on issues like immigration and border cooperation.
Sheinbaum's background as a climate scientist has garnered attention, particularly in international media. However, within Mexico, there is more focus on her close association with López Obrador and the continuity of his policies