MEXICO CITY, July 10 (Reuters) - Mining investment in

Mexico should remain largely stable in 2024 compared to last

year at around $5 billion but new regulation could hamper the

development of new mining projects, the country's Camimex mining

chamber said on Wednesday.

The 2023 investment level fell 5.8% from the previous year

to $4.96 billion, Camimex said, amid uncertainty after

regulations were tightened for new projects.

The reform, promoted by the government of President Andres

Manuel Lopez Obrador, shortens concessions in the mining sector

to 30 years from 50 and tightens extraction permits for water,

as the country faces extended shortages and hotter climate.

Camimex President Jaime Gutierrez said in a presentation

that investments this year would largely go toward expansions

and modifications of existing mines, due to the "great

limitation in terms of new projects."

Higher international prices for raw materials this year

should bring in higher income for local producers, he added,

after a "challenging" 2023 due to unfavorable global trends and

the effect of the new regulation.

Mexico's metals production was worth some 261.1 billion

Mexican pesos ($14.7 billion) last year according to Camimex,

down 18% from 2022, while the sector's tax contributions fell

32% year-on-year.

Gutierrez said industry representatives had reached out to

officials of Mexican President-elect Claudia Sheinbaum, set to

take office in October, with their concerns regarding the

sector.

"I believe she (Sheinbaum) has a clear awareness of the need

to increase economic possibilities in the country and that this

will only be possible if she supports mining," Gutierrez said.

Camimex brings together the country's largest industry

players, such as Grupo Mexico, one of the world's

top copper producers, and Industrias Peñoles, one of

the biggest producers of refined silver.

Mexico's government has clashed with several miners this

year, such as Vulcan Materials ( VMC ), whose limestone mine located

near popular Caribbean tourist resorts the government said was

causing environmental damage, which the firm denied.

Mexico is the world's top silver producer and a major

supplier of gold and copper. Its mining industry fuels some 2.5%

of gross domestic product.

($1 = 17.8084 Mexican pesos)