The Latin American country emerging as the ‘new Dubai’ thanks to its vast gold reserves

Mexico’s largest gold mine has eyes on it, the enormous operation in the state of Zacatecas that produces almost 30% of all the gold mined nationwide. The Peñasquito mine is expected to remain in operation for at least another two decades, making it one of the most important mining sites in Latin America.

Production began in 2010, and the mine has played a major role in Mexico’s mining industry ever since. Beyond gold, Peñasquito also produces significant amounts of silver, lead and zinc, helping generate annual revenue of more than $1.9 billion.

A strategic asset under foreign ownership

Despite its importance to the Mexican economy, Peñasquito is owned by the U.S.-based mining company Newmont Corporation, which acquired the operation through its 2019 purchase of Goldcorp. As a result, much of the mine’s economic value ultimately flows to a foreign-owned company, although Mexico benefits through taxes, royalties and thousands of local jobs.

The mine supports more than 2,800 direct employees and many additional indirect jobs, but foreign ownership has fueled debate over how the wealth generated by Mexico’s natural resources should be shared.

Gold remains a strategically important commodity, serving not only as a financial reserve but also as a material used in electronics, aerospace technology and scientific equipment. That has made major deposits such as Peñasquito increasingly significant from both an economic and geopolitical perspective.

Environmental concerns remain

Like many large-scale open-pit mining operations, Peñasquito has also faced criticism over its environmental footprint. Extracting and processing the ore requires moving vast quantities of rock and using chemical processes to separate valuable metals.

Critics argue that these activities can affect local water resources, biodiversity and surrounding landscapes, while supporters point to the jobs and economic activity the mine brings to the region. The balance between economic development and environmental protection continues to be one of the biggest questions surrounding one of Mexico’s most valuable mining projects.

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