Mexico’s Mining Industry

specIal feature The Latest Intel on Mexico’s Booming IT Industry 

III II - 2013 2012 

Mexico’s 

Mining 

industry 

Worth Its 

Weight in Gold

Confirmed speakers include: 

César Barrios 

Executive Director 

FIDESUR 

Emilio Rangel Woodyard 

Managing Director 

Servicios de Agua y Drenaje 

de Monterrey I.P.D 

Manuel 

Rodríguez Arregui 

Managing Director 

GBM Infraestructura 

2 nd MEXICO 

INFRASTRUCTURE 

SUMMIT 

Jesús Padilla Zenteno 

Chairman of the Board 

and General Manager 

Corredor Insurgentes 

February 6-7, 2013 -Camino Real Polanco, Mexico City 

www.mexicoinfrastructuresummit.com 

New government plans and regulatory framework for 

the development of new energy, social, transport and 

water infrastructure projects in Mexico. 

BNamericas.com 

Hugo Beteta 

Subregional Director 

ECLAC Mexico 

For more Information contact us at 

events@bnamericas.com or call us 

(+562) 2941 0450 / (+562) 29410399 

Media Partners

Contents. 

February 2013 

Cover Feature 

Mexico’s 

Mining 

industry 

Worth Its Weight in Gold 

From the Ceo 4 

Briefs 5 

Guest opinion 

Five Lessons 

for Successful 

Internationalization 8 

Mexico in the World 

Canada and Mexico: 

A Business Relationship 

with Great Potential 10 

Business tips 

Mexico: 

A Virtual 

Success Story 15 

Special Feature 

The Latest Intel 

on Mexico’s 

Booming IT Industry 18 

Mexico’s Partner 

Nearsoft 20 

Vangtel 22 

Arkus Nexus 24 

Enable 26 

Torex Gold 34 

Goldcorp 36 

Exportadora de Sal 38 

Korea Zinc 40 

Mexichem 42 

Yamana 44 

Agnico-Eagle 46 

28 

Mexico and the Bet 

on the Integration 

of Global Supply Chains 

Interview with 

Ernesto de Lucas Hopkins 

CEO of ProMéxico 

12 

photo courtesy of agnico-eagle 

photo archive 

The Lifestyle 

From Turquoise 

To Emerald 

Five Heavenly Beach 

Destinations in Mexico 

68 

the Lifestyle Briefs 

PagE 50 

48 Hours in... 

Guadalajara 

PagE 52 

a Brief History of... 

The Veracruz Carnival 

PagE 60 

Interview 

Frida Escobedo 

An Architect Gone Public 

PagE 62 

Mexico according to... 

Ana Claudia Talancón 

PagE 66 

The CompleTe Guide To 

The mexiCan Way of life 

Beatriz Morales 

the Infinite Possibilities 

of Creativity 

60 

photo courtesy of las alamandas 

photo courtesy of beatriz morales 

ProMéxico 


CEO 

Sebastián Escalante 

Director of Publications and Content 

sebastian.escalante@promexico.gob.mx 

Miguel Ángel Samayoa 

Advertising and Suscriptions 

negocios@promexico.gob.mx 

Natalia Herrero 

Suzette Celaya 

Copy Editing 

Laboratorio Editorial 

Felipe Zúñiga 

Editor in Chief 

felipe@laboratorioeditorial.com 

Paola Valencia 

The Lifestyle Editor 

Malena López 

Design 

Graeme Stewart 

Proofreading 

CM Idiomas 

Alison Stewart 

Translation 

This is an editorial project for ProMéxico 

by Laboratorio Editorial, S.A. de C.V. 

Download the PDF version and read the interactive 

edition of Negocios ProMéxico at: 

negocios.promexico.gob.mx 

this publication is not for sale. Its sale and 

commercial distribution are forbidden. 

Negocios ProMéxico es una publicación 

mensual editada en inglés por ProMéxico, 

Camino a Santa Teresa número 1679, 

colonia Jardines del Pedregal, Delegación 

Álvaro Obregón, C.P. 01900, México, D.F. 

Teléfono: (52) 55 54477000. Página Web: 

www.promexico.gob.mx. Correo electrónico: 

negocios@promexico.gob.mx 

Editor responsable: Gabriel Sebastián Escalante 

Bañuelos. Reserva de derechos al uso exclusivo 

No. 04-2009-012714564800-102. Licitud de título: 

14459. Licitud de contenido: 12032, ambos otorgados 

por la Comisión Calificadora de Publicaciones 

y Revistas Ilustradas de la Secretaría de Goberna- 

ción. ISSN: 2007-1795. 

Negocios ProMéxico año 6, número II, febrero 2013, se 

terminó de imprimir el 31 de enero de 2013, con un tiraje 

de 13,000 ejemplares. Impresa por Cía. Impresora 

El Universal, S.A. de C.V. Las opiniones expresadas por 

los autores no reflejan necesariamente la postura del 

editor de la publicación. Queda estrictamente prohibida 

la reproducción total o parcial de los contenidos e 

imágenes de la publicación, sin previa autorización de 

ProMéxico. Publicación Gratuita. Prohibida su venta y 

distribución comercial. 

ProMéxico is not responsible for inaccurate information 

or omissions that might exist in the information 

provided by the participant companies nor of their 

economic solvency. The institution might or might not 

agree with an author’s statements; therefore the responsibility 

of each text falls on the writers, not on the 

institution, except when it states otherwise. Although 

this magazine verifies all the information printed on its 

pages, it will not accept responsibility derived from any 

omissions, inaccuracies or mistakes. February 2013.

from 

the Ceo. 

Mexico is a competitive destination for mining investment. An industry with 

a century-old tradition, mining remains one of the leading sources of income, 

employment and development in the country. But beyond the mineral wealth 

required to develop this activity, conditions in Mexico have made it one of the main 

destinations in the world for mining investment, surpassing countries that are richer 

in mineral resources. 

Mexico offers stability and reliability for productive investment; a business 

climate that favors productivity; infrastructure and a legal framework that are ideal 

for international trade, and human talent that is unquestionably a success factor for 

any productive project. 

In Mexico’s mining industry, the numbers speak for themselves. In recent years, 

the sector has recorded unprecedented investment, significantly increased its 

production capacity and secured a growing share in international markets for several 

minerals. 

But the mining industry is not Mexico’s only source of pride. The country’s 

business climate also brings certainty to promising global market sectors, for 

example, information technology, where in a short period of time and thanks largely 

to Mexico’s human talent, the country is earning a spot among the leading developers 

and exporters. 

While the mining and information technology industries may seem like complete 

opposites, in Mexico they share some rather crucial elements. A highly-skilled 

human capital, investor confidence, public policies and an ideal business climate are 

just some of the similarities that have favored the development of both industries and 

earned them a solid and increasingly stronger presence in international markets. 

Welcome to Negocios! 


CEO 

ProMéxico 

illustration archive 

BUSINESS 

ENVIRONMENT 

Mexico Creates National 

Entrepreneur Institute 

_____ 

On January 11, Mexican President Enrique Peña Nieto 

signed a decree to found the National Entrepreneur Institute 

(INADEM) to support the creation of new and 

improved micro, small and medium-sized businesses 

(SMBs) with a view to pushing Mexico towards a model 

of growth based on innovation, leveraging the momentum 

of exports and fostering the development of mechanisms 

to increase national content in exports. 

This state-of-the-art public entity will work closely with 

entrepreneurs and SMBs to build a fertile scenario removed 

from excessive regulations and bureaucratic obstacles. The 

creation of the INADEM will benefit the domestic market 

by favoring the consolidation of production chains. 

This specialized institute will focus on several areas, 

such as providing support to strategic sectors with 

Briefs 

significant growth potential; creating jobs and having 

an added value participation in export chains; favoring 

regional development by furthering each state’s production 

vocation and existing competitive advantages; 

and providing special attention to entities with specific 

social and economic issues. 

The INADEM will strengthen the financing ecosystem 

based on regional and sector priorities, ensuring 

business owners have access to funding. Also, it will 

promote a new culture between entrepreneurs and 

Mexican society, which will undoubtedly drive a public 

administration to a full-on business success. 

www.economia.gob.mx

photo courtesy of ford 

photo archive 

Briefs Briefs 

AUTOMOTIVE 

Ford Drives 

Down the 

Fast Lane 

_____ 

US auto maker Ford will invest 59.1 million 

usd to expand operations at its production 

plant in the state of Chihuahua. Resources 

will support engine production and block 

machining operations at the site. 

corporate.ford.com 

AUTOMOTIVE 

Mexico’s Automotive 

Sector Gains Support 

_____ 

CONSTRUCTION 

An Alliance Sealed with Cement 

_____ 

French giant Lafarge has agreed with Elementia, 

a Mexican industrial conglomerate, 

to combine their cement assets 

in Mexico.Lafarge will contribute its 

two plants of Vito and Tula with a total 

capacity close to 1 million-ton while Elementia 

will contribute the new 1 million 

tons plant it is currently building in 

central Mexico. 

The transaction, which involves no 

cash and is subject to regulatory approvals, 

is expected to close in the second-half 

of 2013, pursuant to the start 

up of the new plant of Elementia. 

The new joint-venture will be 47% 

held by Lafarge and 53% by Elementia. 

www.lafarge.com / www.elementia.com 

The Ministry of Economy (SE) filed a 

claim on January 10, 2013 with the Mexican 

Federal Commission for Regulatory 

Improvement (COFEMER) to withdraw 

the file for the draft amendment to the 

Decree in Support of the Competitiveness 

of the Terminal Automotive Industry 

and Support for the Development of 

the Domestic Car Market (published on 

December 31, 2003 and modified on November 

30, 2009). 

This action was carried out to give certainty 

to the sector and avoid establishing 

requirements that could hinder the entry 

of new manufacturers. Thus, Mexico will 

be established as a strategic player in the 

automotive sector. What is more, keeping 

the required production to access the 

benefits of the Decree at 50,000 vehicles 

will favor the entry of new investors. 

www.economia.gob.mx 

photo courtesy of lafarge 

photo courtesy of mitsui 

AUTOMOTIVE 

Mexico and Argentina Restore 

Trade of Light Vehicles 

_____ 

The Mexican and Argentinean governments concluded 

negotiations of the Fourth Additional Protocol to Appendix 

I of the Economic Complementarity Agreement 

55 (ACE 55), which will enable the trade of light vehicles 

between both countries to be restored based on the agreement 

reached between their respective automotive sector 

associations. 

RENEWABLE ENERGY 

Enlightening 

Winds 

_____ 

Japanese investment group Mitsui & Co. 

will take a 50% ownership stake in the 

Mexican wind power generation facility 

Bii Stinu, currently under construction 

by a subsidiary of French energy developer 

EDF Energies Nouvelles. Mitsui 

specified the total cost of the project at 

approximately 400 million usd. 

www.mitsui.com 

The agreement entails an incremental temporary regime 

of tariff-free light vehicle exports for each country, aimed at 

achieving free trade by March 2015. With these negotiations, 

Mexico maintains trade preferences under ACE 55 and reverses 

the unilateral suspension decreed by Argentina in 2012. 

www.economia.gob.mx 

CHEMICAL 

Clariant’s 

New Plant in 

Mexico 

_____ 

Swiss specialty chemicals producer 

Clariant opened a new production 

plant in the eastern state of Veracruz. 

The 20 million usd facility is planned 

to produce chemical components for 

use in the manufacure of consumer 

goods such as skin creams, shampoos 

and home cleaning products. 

www.clariant.com 

photo archive 

photo archive

8 Negocios ProMéxico Negocios ProMéxico 9 

Five Lessons for 

successful 

InternatIonalIzatIon 

The process of expanding a business internationally is a path 

that can follow many routes, whether winding or direct, through 

export, investment or acquisition of companies abroad. The 

operation of subsidiaries in other countries enables firms to 

diversify risk, generate income in other currencies, reduce costs 

and gain more experience in new business opportunities. 

____ 

According to the World Investment 

Report (2012) by the 

United Nations Conference on 

Trade and Development (UNC- 

TAD), in 2011 Mexican companies invested 

about 9 billion usd abroad. This placed 

Mexico as the country with the secondlargest 

outflow of foreign investment in 

Latin America, just behind Chile. 

The food manufacturing, infrastructure 

and service industries are the sectors that 

have generated the largest number of international 

companies in Mexico. Some take 

their time to make the crossover and some 

are born global. This note draws on some of 

the strategies that the most successful Mexican 

companies have applied to break into the 

world market. 

1. There is sTrengTh in numbers 

Approaching an unknown market can be 

daunting, which is why it is helpful to have 

a partner who knows the market and is 

willing to share the risk. An example of 

this strategy is the joint venture between 

General Electric (GE) and Mabe, signed 

in 1987. Since then, both companies share 

product lines and business strategies, 

which enabled the successful internationalization 

of Mabe and the mutual transfer 

of technology and innovation. 

by alba zazueta gaxiola* 

photos archive 

2. innovaTe, innovaTe, 

innovaTe 

With specialization in its product line and 

strong vertical and horizontal integration, 

including the purchase and merger of foreign 

firms, Cementos Mexicanos (CEMEX) 

became a success story in the global industry. 

Based on its innovative and cutting-edge 

logistics strategies, use of information technology 

and a modernized service to clients, 

the firm made its processes more efficient, 

both in its own companies and in those it 

acquired, and has continuously improved its 

competitiveness. 

3. Don’T hiDe your lighT 

unDer a bushel 

In 1999, Corona beer launched its “quality 

has no boundaries” campaign, which has 

helped to position the brand on the world 

market and to associate it with Mexico and 

its culture. This campaign stood out thanks 

to its emblematic presentation of Mexican 

elements at equally renowned global 

locations (such as the Great Wall of China) 

or using other national symbols (like the 

Canadian Mounted Police), while stressing 

the undeniable quality of the product. The 

effort to internationalize this brand began 

with exports to the US, Japan and several 

European countries in 1985. Currently, it is 

distributed in over 170 countries and has 

established itself as the fourth most valuable 

beer brand in the world. 

4. all publiciTy 

is gooD publiciTy 

Who would have guessed that bad publicity 

could bring benefits to a company? 

Such was the case of the automaker Mastretta 

and its MXT sports car. In 2011, 

a British TV show called the first car to 

be 100% designed and manufactured in 

Mexico a product with a low level of competitiveness 

in the automotive industry. 

Rather than causing rejection, these assertions 

aroused the curiosity of consumers 

and led to the vehicle winning 

recognition on the specialist automobile 

market worldwide. The MXT is an elite 

sports car that is distributed only upon 

request and has been sold in the US, UK, 

South Korea and France, among other 

countries. 

5. Know your TargeT 

Identifying potential customers and affinities 

with the productive capacity of 

companies is crucial to advance the internationalization 

process and effectively 

measure business opportunities. Some 

companies have had to adapt their products 

to enter new markets. In the late 

1990s, the tortilla dough company Gruma 

made a full entry into the European market, 

positioning new bread products in a 

multicultural market. For that purpose, 

the group acquired a number of plants 

in Europe and Asia, indicating a growing 

international presence. 

Other Mexican companies such as 

Kidzania, Cinépolis, Nemak, Bimbo, 

América Móvil, TRALCOM, Ingenieros 

Civiles Asociados (ICA) and Sushi-Itto 

are also clear examples of the corporate 

consolidation that has been implemented 

across the globe in recent years. These 

companies have shown that the capacity 

to adapt and innovate is key to surviving 

the process of natural selection in an 

increasingly globalized economy. Moreover, 

it sets the challenge of continuing 

the successful internationalization of 

Mexican companies and brands in order 

to achieve the consolidation of Mexico as 

a hub for development and growth. n 

*Economist from the Tecnológico de Monterrey 

(ITESM). Holds a Masters in Economics from 

the University of Essex, UK.

10 Negocios ProMéxico 

canada 

and Mexico: 

a Business 

RelaTionship 

WiTh GReaT 

poTenTial 

Mexico and Canada are 

North American neighbors 

that share their borders with 

the world’s largest economy: 

the US. The potential 

between both countries needs 

to be further increased to 

benefit their inhabitants. The 

strengthening of commercial 

ties and an increased flow 

of productive investments 

speak to the importance of 

both nations in the North 

American community. 

____ 

by josé antonio peral* 

illustration oldemar 

Trade between members of the North American 

Free Trade Agreement (NAFTA) has 

been restored to levels recorded before the 

crisis of late 2008. In 2011, Canada became 

Mexico’s third largest trade partner on a global level 

(sixth largest supplier and second largest buyer). 

Trade between Mexico and Canada increased 178% 

between 2001 and 2011, going from 7.317 billion usd 

to 20.34 billion usd, an average annual growth rate 

of 11%. This trend must be sustained and furthered, 

considering the ties that have been built between the 

countries over time. 

Bilateral relations between Mexico and Canada 

have become more solid. According to Industry Canada, 

trade between both countries reached 34.6 billion 

usd in 2011. Mexican exports to Canada have diversified 

significantly with an increase in, for example, 

computer items and electrical devices. Mexican imports 

of automotive products continue to occupy an 

important place in trade due to the significant intracompany 

flow of American assemblers. 

The business potential is unlimited. Both countries 

are strategic partners and depend on their trade 

relations with the US; it is in their best interests, 

therefore, to expand their business by increasing 

their competitiveness within the NAFTA region and 

in other markets. According to preliminary statistics, 

in 2012 bilateral trade between Mexico and Canada 

reached 35 billion usd, the highest ever. 

While Mexico will continue to be an important 

destination for Canadian mining companies, other 

sectors need to be considered. Mexico offers multiple 

investment opportunities in other strategic areas, 

such as the aerospace sector. In 2011 alone, Mexico 

became the sixth largest supplier of components to 

the US aerospace industry. Mexican engineering and 

design centers are manufacturing more sophisticated 

components in which design and knowledge development 

are extremely important. 

In 2011, Canada was the sixth largest investor in 

Mexico on a global level. Between January 2000 and 

June 2012, Canadian direct investment in Mexico 

was 11.610 billion usd, making it the fourth largest 

investor in Mexico, only behind the US, Spain and 

the Netherlands. According to Mexico’s Ministry of 

Economy (SE), at the close of the first half of 2012, 

3,059 companies with Canadian equity were operating 

in Mexico. 

Mexico and Canada are important trade partners. 

Both countries share a dynamic and prosperous relationship 

in the Americas, but also in the world. n 

*Trade Commissioner at ProMéxico’s Office in Toronto, 

Canada. 

1. Location, location, location. 

Mexico's privileged geographic 

location is impossible to 

emulate. 

2. Strategic partner. 

For Canada, Mexico is near 

shore; it is the closest and the 

most competitive country for doing 

business, creating important 

synergies that result in a more 

efficient participation in both 

NAFTA and other markets. It is 

the gateway to the growing and 

vast Latin American 

market. 

3. Laws and openness. 

Mexico is open to 

international business and has a 

legal framework that provides 

transparency, certainty and 

safety, the foundation to 

promote national and 

foreign investment. 

MEXICO'S TOP 10 

BUSINESS STRENGTHS 

4. Reforms. Mexico has 

shaped a decisive strategy of 

openness and support for key 

reforms that boost economic growth 

to more convincing levels. A few 

relevant examples are the labor 

reform and proposals to redefine 

the education, tax and energy 

sectors, among others. 

5. Global champion in trade 

agreements. Mexico has 12 free 

trade agreements that provide it 

privileged access to 44 countries and 1.2 

billion consumers. Together with 

Canada, Mexico is negotiating its 

participation in the Trans-Pacific 

Partnership (TPP), which will allow 

it to strengthen its strategic 

bilateral relations with 

Asia-Pacific. 

Negocios ProMéxico 11 

10. Outstanding 

tourist destination. Mexico is 

a friendly country with a wide 

biodiversity and an enviably varied 

climate. It has more than 42,000 

archaeological sites and 31 sites that 

have been declared World Heritage 

by UNESCO. In 2012, more than 23 

million tourists visited Mexico, 

of which only 1.6 million 

were from Canada. 

9. Bright future. Mexico is 

set to become the leading 

economy in Latin America in the near 

future. According to The Economist, 

during 2011 the Mexican economy grew 

more rapidly than countries like Brazil, and 

will do so again in 2012. According to 

Goldman Sachs, Mexico will be the fifth 

largest economy in the world by 2050. 

Analyses such as those carried out by 

Accenture state that Mexico will be 

one of the top six economies by 

2025. 

6. Competitive costs. 

According to KPMG, Mexico has 

an average cost advantage of 21% (in 

19 industries) compared to the US. It is 

worth noting that Canada has a large share 

in Mexico's mining investment, approximately 

75% of total foreign investment, and an 

important presence in the country's 

aerospace, automotive and auto parts 

industry. The country is also looking to 

emulate these successes in the 

environment, creative and energy 

industries, to name a few. 

8. Abundant and 

skilled workforce. Mexico 

has 112 million consumers with 

an average age of 26, of whom 47 

million belong to a workforce that 

will reach 60 million by 2030. More 

than 115,000 engineers graduate 

every year. This number exceeds 

that of countries like Germany, 

Canada, the United 

Kingdom and Brazil. 

7. Global 

manufacturing and 

logistics center. Mexico's 

competitiveness and the 

modernization of its infrastructure 

are crucial to becoming a 

successful market competitor, 

attracting more and more 

foreign companies.


mexiCo and The BeT on 

The inTeGRaTion of 

Global Supply Chains 

Ernesto de Lucas Hopkins has been the 

CEO of ProMéxico since December 2012. 

ProMéxico is the Mexican government 

entity in charge of coordinating strategies 

to strengthen Mexico’s participation in the international 

economy. It supports the export process of 

companies established in Mexico and coordinates 

public and private actions aimed at attracting foreign 

investment to the country. 

In line with President Enrique Peña Nieto’s fivepronged 

government strategy –a peaceful, inclusive, 

educated, prosperous and globally responsible 

country– ProMéxico aims to build a prosperous Mexico 

by boosting investment, trade and internationalization 

of Mexican companies. 

During an interview with Negocios, the young 

CEO shared his vision of Mexico, the challenges it 

faces and the direction that ProMéxico will follow to 

support the growth of the Mexican economy. 

—What is your opinion of the Mexican 

economy? 

I am convinced that this is Mexico’s time. The 

country is in the right place at the right time. 

For more than 20 years, Mexico has worked to 

strengthen its economy, and now we can see the 

results: analysts, consultants, entrepreneurs and 

specialized media around the world agree that we 

have a stable and growing economy. 

Regardless of the challenges facing the global 

economy today, Mexico’s Gross Domestic Product 

(GDP) recorded a 4% growth in 2012, and is expected 

to grow 3.5% in 2013. Meanwhile, the country’s 

inflation rate was 3.6% in 2012 and according to 

several estimates it will remain the same in 2013. In 

addition, in January 2013 the country’s international 

reserves recorded a historic high of 165.5 trillion 

dollars. 

All these figures show why the eyes of the world 

are focused in Mexico… Because our country has a 

promissory horizon, full of growth and development. 

And the present administration is working 

hard in order to push ahead this momentum. The 

government of President Enrique Peña Nieto has a 

by negocios 

photo archive 

very clear vision of where Mexico is heading and what 

Mexico needs to accelerate its development. To do 

this, he has set five major goals for his administration. 

Specifically, ProMéxico is working hard to support the 

fourth goal: achieve a more prosperous Mexico. 

In this regard, the Government is promoting that 

Mexico remains an open economy, a world trade 

promoter and a supporter of foreign investment in our 

country. 

—What are the advantages for Mexico in its 

current economic context? 

The global financial crisis of 2008 has forced the 

global economy to restructure. As part of this process, 

large transnationals have had to make decisions 

to relocate their operations in more cost-effective 

destinations with strong infrastructure and skilled 

human talent. Therefore, the face of the global 

economy is changing and emerging economies are 

playing an increasingly important role. 

Within this context, Mexico has positioned itself as 

one of the most attractive and profitable destinations 

for business development. There are at least four 

reasons behind this: the country’s strategic geographic 

location; the existence of a legal and regulatory 

framework that favors investment; the availability 

of a highly-skilled and specialized workforce; and 

competitive production costs. 

—For over two decades Mexico has defined public 

policies to bring its economy to where it is now. 

The bet on free trade has been a crucial element 

of these policies. Mexico is currently one of the 

most open countries in terms of trade and has 

an extensive number of free trade agreements in 

the world. What’s next? 

We must understand that free trade is not an end in 

itself, but a tool for economic development to boost 

business expansion and achieve a higher wellbeing for 

the general population. 

In that sense, free trade has been a key element of 

Mexico’s growth. Even at times when the trend has 

been to adopt protectionist measures to “bulletproof ” 

national economies against the fluctuations of


“i sTRonGly Believe ThaT This is 

mexiCo’s Time; The Time To seize 

oppoRTuniTies and advanTaGes and 

CapiTalize on Them as The GloBal 

eConomy GaTheRs momenTum.” 

the global economy, Mexico has maintained, even 

strengthened, its bet on free trade. In light of the recent 

financial turbulence, Mexico decided to move ahead with 

its economic liberalization program and not only avoided 

adopting protectionist measures, but furthered the 

elimination of tariffs and the liberalization of several goods 

and services. 

With the positive results achieved through the 

country’s economic openness strategy, the next step is to 

stay the course but with a new perspective. 

The strategy is to continue pushing Mexico’s 

foreign trade, diversifying both the goods and services 

that the country exports and their destinations. To do 

so, Mexico is involved in a new generation of free trade 

agreements that seek to strengthen the multilateral 

trade system and favor regional economic integration 

to consolidate global supply chains. 

These agreements seek to create synergies and leverage 

the specific attributes of each participating economy, to 

integrate more solid trade and economic blocs that favor 

regional growth and economic development. 

—What do you mean when you talk about global 

supply chains? 

The concept of global value chains means that production 

is no longer carried out in one country. Every process, 

from producing raw materials to transforming them into 

finished goods, is done where the skills, materials, cost and 

quality conditions are. 

Therefore, a product can be designed in the US 

while its parts are manufactured in China and the final 

product assembled in Mexico, only to be exported back 

to the US, where it is sold to the end consumer. 

In this way, import-export statistics lose importance; 

what matters is being the country that adds more value to 

products, especially in terms of intensive use of knowledge 

and complex manufacturing processes. 

Mexico has a highly productive export sector that is 

internationally competitive, rapidly growing and makes 

intensive use of capital and technology. 

—In which global supply chains can Mexico become a 

key link? 

Our country is ready to support more innovation and 

high technology activities because we have the necessary 

human capital and experience, as well as an economy that 

exports sophisticated products. 

The goal is to support every sector in the country to 

help them move forward in their transition to advanced 

manufacturing, with special attention on boosting those 

industries that are able to generate more technology and 

knowledge transfer, such as the automotive, auto parts, 

aerospace, IT and software, electric-electronic, medical 

devices and renewable energies. 

Mexico is already a very attractive destination for these 

sectors. The goal is to seize this opportunity as a country 

and further the competitiveness of these industries. 

—What is Mexico’s position in the area of advanced 

manufacturing? 

Mexico is currently a leader in advanced manufacturing. 

It is the third largest exporter among G20 members 

in medium and high technology manufacturing, as a 

percentage of the GDP; Mexico is behind Germany and 

South Korea and ahead of China, France and even Japan, 

which are globally renowned for their technological 

capacity. In addition, we are the leading exporter of 

medium and high technology in Latin America. 

An interesting fact is that Mexico is home to more 

than 200 research and development centers that 

belong to global companies such as Dupont, Honeywell, 

General Electric, Intel, Ford, Mabe and Ericsson, 

among many others. 

For this reason, we are looking for a support policy 

that includes the manufacturing, services and research 

and development sectors. We are speaking of a modern 

industrial policy where all sectors make a coordinated 

effort to move forward. In that sense, supporting 

innovation and productivity in our country will be crucial 

tools to achieve this goal. 

—What is Mexico’s goal with this policy? 

I am very optimistic for Mexico’s future. Currently, 

the country is very well positioned and continues 

to improve its advanced manufacturing capacities, 

strengthening its internal market and consolidating 

domestic production chains. 

As I have said before, I strongly believe that this 

is Mexico’s time; the time to seize opportunities and 

advantages and capitalize on them as the global economy 

gathers momentum. 

Mexico is ready to face today’s challenges, and 

I agree with the various analyses that say that the 

country will become one of the strongest economies in 

the world in the coming years. That is the main goal of 

the policies we are implementing. 

—What is ProMéxico’s role in this scenario? 

At ProMéxico we are working and will continue to work 

very hard in the next few years to become the best ally of 

companies seeking to export from Mexico and companies 

that want to transfer their operations here. 

We want to strongly support every investment project 

that generates opportunities and well-paid jobs for 

Mexicans. We also want to be facilitators who help every 

project that comes into our country prosper. 

In that sense, we want to work with a higher 

degree of integration in every area: with the states, 

the business sector and the academic sector. We want 

to establish a link with the country’s manufacturing 

sector, working hand in hand to generate more 

opportunities for growth and development. n 

mexico: 

a Virtual 

Success Story 

____ 

by guillermo rodríguez abitia* 


mexiCo is seT To BeCome a GReaT 

pRoduCeR of viRTual RealiTy 

appliCaTions. The evoluTion of 

The viRTual RealiTy indusTRy 

in mexiCo Will aid oTheRs ThaT 

aRe CuRRenTly BoominG in The 

CounTRy, like The auTomoTive, 

aeRospaCe, TouRism, healTh 

seRviCes, and eneRGy indusTRies, 

pRovidinG a feRTile GRound 

foR a sTRonG leveRaGinG of 

oppoRTuniTies and sTRenGThs. 


For most people, virtual reality 

has become a commonplace term 

in their everyday lives. Today, 

children have grown accustomed 

to interacting with computer games or 

watching movies and TV programs in 3D. 

Professionals rely on computer programs 

which allow them to design models of 

buildings, structures, pieces of machinery, 

furniture or even fashion garments, to get 

a better idea of how prototypes look from 

different perspectives. 

Even though virtual reality has been 

around for some decades, it is until now 

that its presence has become pervasive in 

people’s lives, at many levels. 

whaT is virTual realiTy? 

Some of the concepts used in information 

technology jargon, like artificial intelligence 

and virtual reality, have caused people 

to get lost in translation and to misunderstand 

what virtual reality truly is. 

Virtual reality refers to the creation of an 

artificial world in which a user may interact 

in many levels. It may be semi-immersive, 

as is the case of video games and 

simple animated videos, where the definition 

of objects and the sense of depth give 

a clear three-dimensional perspective, requiring 

no more sophisticated equipment 

than a simple screen; or immersive, where 

through the use of special glasses or other 

equipment, one gets the feeling that objects 

“jump out” of the screen, which is what 

is known as 3D. The most extreme cases 

of virtual reality are those called “caves,” 

where a person stands within a 360-degree 

virtual world and interacts with it, 

rather than being just a passive viewer. 

At the National Autonomous University


of Mexico (UNAM), the “Ixtli Room” is a 

pioneering facility for immersive virtual 

reality where various developments in the 

field have been made to support learning 

and research. A portable version of the Ixtli 

equipment has also been developed and is 

now in the deployment process for every 

school at UNAM. 

There is also what is known as augmented 

virtual reality, where the virtual world 

interacts in some way with the real world. 

Thus, a computer application may identify 

elements in the real world through a lens 

of a GPS, extend the projection of images 

beyond the screen, and have alternative inputs 

to the system through natural elements 

like fingers or body movements. This is not 

limited to the projection of output images 

on the screen, but also to other surfaces like 

tables, walls or even human skin. 

Evidently, the virtual reality field is 

strongly related to that of multimedia applications, 

since they both aim at building 

representations of the real world and creating 

fictional ones. 

whaT is iT useD for? 

The most recognized applications of virtual 

reality are those geared towards the 

industry of entertainment. Most people 

have played computer games or gone to 

animated movies or even watched films 

in 3D. Recently, TV devices have evolved 

significantly by taking 3D entertainment 

to homes. Even sports are now broadcasted 

in 3D. 

Nonetheless, there is a wide range of 

virtual reality applications. In the health 

industry, it is used to treat phobias or simulate 

surgeries. In aviation, it is used to train 

pilots. Training is also widely supported 

by virtual reality wherever high-precision 

skills development is required for employees. 

Such is the case of an application 

developed by the Institute of Electrical 

Research (IIE), whose main objective is to 

train workers of Mexico’s electric industry. 

3D modeling alone is widely used for 

design of all types, from bridges, buildings, 

and other engineering structures, to pipes, 

electric installations, clothing, machinery 

components, and other elements through 

what is commonly known as Computer- 

Aided Design (CAD). 

Building virtual environments is not 

exclusive for video games or movies; it is 

also frequently used for culture, historic 

records preservation, tourism and virtual 

stores, among other applications. The 

UNAM holds one of the most notorious 

examples in the field, with an application 

that keeps a 3D record of pre-Hispanic 

cities, such as the ancient Mayan City of 

Bonampak, providing an environment 

where one can admire its fabulous buildings 

and frescos without having to travel 

to the state of Chiapas. Also at UNAM, 

there is an augmented reality application 

called UNAM 360, where one can aim a 

smartphone camera at a building or structure, 

and immediately get information 

about said construction like historic facts 

and routes to get to places, among other 

functions. This application may be extensively 

used for tourism purposes in different 

cities and sites. 

An interesting example of a virtual reality 

application was showcased during 

the 2010 World Expo of Shanghai, where 

alongside the traditional exhibition space 

for country pavilions, there was also a virtual 

expo. Thus, people from all over the 

world were able to visit the expo by means 

of a virtual reality environment, without 

having to travel to China. It also offered 

the advantage of providing “extra room”, 

as there are no space limitations in the 

virtual world. And so the concept of “extended 

pavilions” was introduced as a way 

of allowing participants to extend their 

promotional offer in the virtual world. 

Furthermore, the virtual pavilion would 

be able to linger after the physical one was 

destroyed, providing a permanent historic 

testimony for the world. 

ProMéxico gave this important responsibility 

to UNAM, with outstanding 

results. The virtual pavilion can still be 

visited at shanghai2010.unam.mx. 

maKing iT happen in mexico 

The global boom of virtual reality and multimedia 

applications makes room for plenty of 

investment opportunities. Mexico is not only 

one of the largest consumers of these applications, 

but also one of the countries that are 

best suited to become great producers. 

In 2012, as a result of a ProMéxico initiative, 

the city of Guadalajara was awarded 

the title of Digital Creative City (DCC), 

where a significant amount of federal investment 

was made to establish the largest 

digital media site in Latin America. 

Building synergies with Guadalajara’s 

DCC, other cities have been moving forward 

to develop this industry as well, such 

as Tijuana, Morelia, Mexico City, Mérida, 

Torreón and Guanajuato. 

In the past few years, the entertainment 

industry in Mexico has experienced 

a steep growth, and the provision of qualified 

and highly competent human capital 

has been a paramount activity carried out 

by Mexican universities and institutes 

of higher education. All this so that all 

related fields to virtual reality may be covered, 

such as digital animation, computer 

graphics and multimedia development, 


Clearly, Mexico is gaining leadership 

in video game production in the region, 

since it has the talent and infrastructure 

required to support and develop these 

projects. According to Pricewaterhouse- 

Coopers (PwC), Mexico is the largest video 

game market in Latin America. KPMG 

describes it as the most competitive destination 

for video game production in the 

Americas. Mexico has become an important 

production destination on the continent 

and investment opportunities in 

these areas are extremely appealing. 

The evolution of the virtual reality industry 

in Mexico will aid others that are 

currently booming in the country, among 

which are the automotive, aerospace, tourism, 

health services, and energy industries, 

providing a fertile ground for a strong leveraging 

of opportunities and strengths. 

The possibilities are endless, and 

Mexico offers all the right conditions for 

the development of the virtual reality industry, 

such as highly-skilled human talent 

and a strategic geographic location. 

Moreover, there is a large market in the 

country that can help any new venture get 

on its feet, and blossom, making Mexico a 

virtual success. n 

* Director of Research, Development and Innovation 

at the National Autonomous University 

of Mexico (UNAM), General Direction of Information 

and Communication Technologies. Former 

president and founder of the Latin American 

and Caribbean Association for Information 

Systems (LACAIS). 

There is a wide range of 

virtual reality applications. in 

the health industry, it is used 

to treat phobias or simulate 

surgeries. in aviation, it is 

used to train pilots. Training 

is also widely supported by 

virtual reality wherever highprecision 

skills development 

is required for employees. 

such is the case of an 

application developed by 

the institute of electrical 

Research (iie), whose main 

objective is to train workers 

of mexico’s electric industry.


The laTesT inTel on 

mexiCo’s BoominG iT 

indusTRy 

Rated the world’s third-largest exporter of IT services, the 

value of the Mexican market has quadrupled in the last decade. 

____ 

by karla garduño 


The value of Mexico’s IT market 

has quadrupled in the last decade, 

climbing from 4 billion usd in 

2002 to approximately 16 billion 

in 2012, according to estimates by the National 

Chamber of the Electronics, Telecommunications 

and IT Industries (CANIETI). 

On a par, exports grew from 1.75 billion 

usd in 2002 to 4.49 billion in 2011, rising to 

an estimated 6 billion usd in 2012. 

Mexico’s free-trade agreements with the 

US –which purchases 80% of the country’s 

IT exports– and other countries, as well as 

low-cost opportunities arising from Mexico’s 

proximity to major technology 

producers and consumers are 

just two of the factors that have 

fueled that growth. 

According to CANIETI 

President Santiago Gutiérrez, a 

government policy specifically 

designed to promote the sector 

has also been instrumental in 

achieving these figures, in the 

sense that it has rallied educational 

authorities and the industry around 

common goals. 

“The potential to do business is always 

your starting point. If you have that potential 

and it’s further enhanced by favorable 

public and educational policies, training 

and certification, then you have all the elements 

you need to seize that opportunity,” 

says Gutiérrez. 

Just over a dozen states in Mexico have 

managed to implement the “triple helix” 

concept, i.e. in addition to aligning the interests 

of the industry with public policy, they 

have synched education, both at university 

level and in terms of training and certification, 

with the sector’s needs. 

Jalisco, Nuevo León, Baja California, 

Querétaro, Chihuahua, Estado de México 

and Mexico City are some of the entities 

that have successfully implemented the “triple 

helix” concept. Not surprisingly, these 

are the states with the highest IT output. 

In recent years, Mexico has migrated 

from traditional manufacturing to a more 

specialized, added-value business model. 

Multinationals have set up research and 

design centers in the country and Mexico’s 

engineers have a reputation for being highly 

creative and innovative. 

“Mexico attracts complex projects that 

demand enormous creativity, great ingenuity 

and a lot of analysis,” concludes Gutiérrez. 

programs To geT aheaD 

To foster greater cooperation and promote 

the growth of Mexico’s IT industry, CANI- 

ETI has introduced two programs. The first 

is México IT (2005), which focuses on participation 

in international events and trade 

fairs in an effort to build bridges between 

Mexico’s IT enterprises and the world’s 

leading consulting firms and analysts, so as 

to familiarize them with the value of these 

companies, says CANIETI Director General 

Rogelio Garza Garza. 

“Why are analysts needed? Because the 

IT sector behaves in the same way as the 

stock exchange. If analysts, who are specialists 

in their field, speak highly of you, people 

take notice. It’s like being given a triple ‘A’ 

investment rating,” states Garza Garza. 

GaRTneR, one of The mosT 

pResTiGious iT ConsulTinG and 

ReseaRCh fiRms in The WoRld, 

RaTes mexiCo ThiRd in TeRms of 

expoRTs, jusT Behind india and The 

philippines. 

In addition to funds put up by the IT 

companies wishing to participate in these 

events, México IT is financed by government 

initiatives like the Software Industry 

Development Program (Prosoft). 

The second program is México FIRST 

(2009), which also has access to Prosoft 

funding, except in this case subsidies are 

channeled through companies to individuals. 

Training for software developers, certification 

of human capital, the development 

of technological platforms and the setting 

up of design and innovation centers are just 

some of the benefits the program offers. 

México FIRST has 380 certification options 

and has certified some 34,000 individuals 

to date. “We are constantly monitoring 

the market, singling out platforms that can 

be developed to help Mexican enterprises 

strengthen their productive capacity and 

human capital, so they can develop their domestic 

market and go on to seek out niches 

on international markets,” adds Garza Garza. 

sTrengThs 

Thanks to a well structured public policy, 

combined with the efforts of the industry 

itself and the number of qualified engineers 

graduating from the country’s universities 

–over 75,000 a year according to the United 

Nations Educational, Scientific and Cultural 

Organization (UNESCO)–Mexico’s IT industry 

has earned international recognition. 

Gartner, one of the most prestigious IT 

consulting and research firms in the world, 

rates Mexico third in terms of exports, just 

behind India and the Philippines. 

Other firms like Forrester and A.T. Kearney 

rank Mexico fifth and sixth, respectively, 

while KPMG acknowledges it to be the 

most competitive option for the location of 

diverse IT service sectors. 

Software development, cell phone manufacturing 

and advanced manufacturing processes 

in the fields of aeronautics, biomedicine 

and electronic components are some of 

the strengths of Mexico’s IT industry, says 

Director General of the Mexican IT Industries 

Association (AMITI), Javier Allard. 

AMITI represents 230 companies that 

are working to encourage other produc- 

tive sectors to adopt IT solutions 

as a means of boosting 

the country’s competitiveness. 

According to Allard, a fourpronged 

approach has been taken. 

The first step has been to encourage 

more enterprises, associations, 

universities and government 

agencies to make greater 

use of IT. Second, the association 

is working hand-in-hand with 

México IT and is helping enterprises develop 

their capacities with a view to promoting exports. 

Third is the training of human capital 

with the support of México FIRST. And, finally, 

there is the relationship with the government, 

both as an IT user and in its role as a 

promoter and regulator of the industry. 

“From here, a series of activities involving 

ties with universities, educational associations 

and different levels of government 

emanate. The final goal of all this is 

to promote investment in IT, with a view 

to improving the country’s efficiency and 

competitiveness, a prerequisite to this being 

a sector with more efficient, more competitive 

enterprises,” explains Allard. 

challenges 

Mexico’s IT industry faces three main challenges: 

the geographical diversification of exports, 

the strengthening of its productive and 

export base by incorporating more small and 

medium companies, and greater emphasis on 

specialized services, advanced manufacturing 

and innovation and research. 

As regards small and medium enterprises, 

which are deemed crucial to addressing 

the aforementioned challenges, these need 

more subsidies and venture capital: they 

need to be put in touch with investors and 

trained in different areas. 

And while industry executives and leaders 

agree that Mexico is still far from ousting 

India as the world’s leading IT manufacturer, 

growth in recent years indicates the 

country could well be on its way to becoming 

a worthy runner up. n


Nearsoft, 

an ally In 

Software DeSIgn 

In just seven years, the MexIcan 

fIrM has won clIents In the us and 

canada and Is ranked hIgh on the 

great Place to work lIstIngs for 

latIn aMerIca. 

____ 

by sandra roblágui 


Nearsoft takes the business of 

other software companies seriously. 

Since its creation in 

2006, the firm established in 

Hermosillo, Sonora, has specialized in 

solving its clients’ business needs with 

such an innovative approach that now it 

holds a portfolio of 14 customers in the US 

and Canada. 

Roberto Martínez, co-founder of the 

firm, explains that Nearsoft focuses on developing 

programs and intellectual property 

for other companies. The firm this 

young entrepreneur represents grew out of 

a merger between the business he founded 

just after graduating as a systems engineer 

and that of his partner, Mateo Pérez. 

In Hermosillo, the company works for 

other software developers during the creation 

and improvement of new programs. 

“We don’t do ‘projects’, we work hand in 

hand with our clients to create high-impact 

products. We assemble a specialist’s 

team to work as a seamless extension of 

our clients’ development team. We value 

commitment, leadership and teamwork 

and we measure our results against these 

standards,” the founders explain on Nearsoft’s 

website. 

Most of the Mexican firm’s clients hold 

the patent to their programs, although in 

some cases they use only licensed products, 

where the intellectual property owner 

is the Mexican developer. 

For a long time, Mexico has trained 

highly-skilled engineers capable of creating 

top-quality software products: “Talent 

abounds in Mexico,” says Martínez, who 

believes that the country is emerging from 

a manufacturing nation to an economy 

based on high levels of production of intellectual 

property. 

Flexibility and added knowledge are two 

of the most valuable features amongst the 

services offered by the company, which is 

why it comprises a pioneering work team 

that offers advanced solutions to its clients. 

Currently, Nearsoft employs a staff of 95, 

most of them engineers, among which are 

Germans, Peruvians, Venezuelans, Canadians, 

French and, of course, many Mexicans 

working to achieve the firm’s goals. 

“Our customers need to get their products 

quickly into the hands of users. They 

need engineers who understand that a 

product with fewer features that is widely 

used is better than one with hundreds 

of features that is not used,” explains 

Martínez. 

Nearsoft makes use of agile working 

methods and its extensive experience involving 

the concept of “time to market”. 

“How can we create a customer base that 

owns and uses the products as fast as possible?” 

Martínez asks. “Beyond solving that 

technical question, we advise our clients to 

learn quickly from their users and customers 

in order to apply the market needs into 

its products,” he answers. 

As Martínez explains, the firm’s staff 

combines technical skills with knowledge 

of their clients’ business, to which is added 

innovation and a lower cost than they 

would pay for similar products in their 

home countries. 

Even though Nearsoft could very well 

be the competitor of its customers, it has 

chosen to be an ally and to correct deficient 

processes in their software. Clients 

value the closeness of the Mexican engineers 

and, above all, their creativity. “We 

have a slimmed-down, horizontal organizational 

structure, so that our customers 

always find it easy to talk to the engineers 

who they have dealt with from the beginning,” 

says Martínez. 

This understanding of technology has 

enabled other software producers to see 

the Mexican company as a strategic partner: 

“From the get-go we show them that 

their business success is our success,” 

adds Martínez. 

And regarding business, Martínez is 

a specialist. Since 2006, when he left for 

Silicon Valley in search of new customers 

and encountered his business partner 

Mateo Pérez, the company began a period 

of growth that was only slowed –not halted– 

by the 2009 global economic crisis. Before 

that, and again after 2010, the Mexican 

company has grown by between 25% and 

30% annually. 

Furthermore, Nearsoft is proof that 

business growth and good work conditions 

are compatible. In 2007 the company began 

to assess and improve its organizational 

environment. Just one year later, in 2008, 

it was included in the top-20 places of the 

Great Place to Work rankings in Mexico. 

In 2012, it moved from 16th to sixth place 

and entered the ranking for all of Latin 

America, where it occupies the 49th spot. 

Recently, the developer Mark Patiño 

stated: “Working at Nearsoft as developers 

means feeling proud of our professional 

work culture and environment […] Many 

people working in the computer industry 

tend to make too many assumptions and 

are scared of asking questions if they have 

doubts. At Nearsoft that is not the case. We 

are passionate about what we do and that 

is evident for the client […] I believe that’s 

why customers stay with us even when 

there are other options available.” 

That is the story of a company that 

builds software, leadership and ethics. n 

www.nearsoft.com


mexico: 

A Talent for Key 

Operations 

MexIco IS DeterMIneD to becoMe one of the worlD’S key 

playerS In InforMatIon technology anD all the relateD 

offShore proceSSeS. Vangtel, a coMpany baSeD In the north 

of the country, haS juSt the potentIal for that. 

The main selling point of Vangtel, a company offering 

consultancy in offshore Business Process Outsourcing 

(BPO), information technology and call centers, is to 

highlight Mexico’s human capital with talent to spare 

when it comes to conducting operations that are central to global 

companies today. 

Every time the firm, based in Hermosillo, Sonora, “sets out its 

stall” for large companies to decide to move their back-office operations 

from economies like the US, Germany, Japan and the UK, or 

from traditional offshore bases –India and the Philippines– to Mexico, 

it emphasizes the excellent training of the country’s workforce 

in disciplines that are now considered fundamental, beginning with 

English as a second language and information technology. 

“The main feature of most of our positions is globalization, in 

the sense that the person who is working with us is actually doing 

so in a global world,” says Arturo Rodríguez, Vice president of 

business development at Vangtel. 

While Vangtel reassures its customers by signing service contracts 

in the US, through its partner in that country, Arizona-based 

The Offshore Group –in order to be governed under a known 

and reliable legal framework– it also states in its bid that its human 

capital comprises Mexican university graduates with highlevel 

technical and analytical skills. It also points out that during 

the time it has operated from the border state of Sonora, it has 

maintained agreements with language and software certification 

schools in order to ensure the quality of its operations. 

“Certainly, there are people whose main occupation is related 

to the phone but we have software developers, support engineers, 

____ 

by omar magaña 

photos courtesy of vangtel 

network engineers and other engineers who oversee networks 

related to telephone or telecommunication lines. Other personnel 

are related to finance, accounting and payments,” relates Rodríguez. 

It is significant that the company’s headquarters are in Hermosillo; 

the company also has bases in Ciudad Obregón, Sonora, 

and Guadalajara, Jalisco. According to Rodríguez, the proximity 

of Sonora and Arizona has created a shared culture in which the 

use of the English language is essential. Moreover, there is a group 

of universities in the state that have given a significant boost to 

degree subjects related to information technology. In Guadalajara, 

Vangtel has welcomed the development that has taken place in the 

technologies and software cluster, hence its presence in that city 

in western Mexico. 

Vangtel believes in a key aspect usually overseen when attracting 

global companies and that is the fact that Mexico and 

the US are in the same time zones, an issue of no little significance 

when it comes to matching processes. It is clear that Vangtel 

will always emphasize an argument of basic importance for 

any company: Clients become more competitive when they set 

all their important, non-core business processes in a country 

that offers a highly-skilled workforce and lower costs than 

those of the major economies. 

vangTel paves The way 

In its invitation letter to Mexico, Vangtel tells companies the 

benefits of establishing in a country that has everything ready 

to get the cogs turning almost straight away. The state of Sonora 

offers the physical, legal and management infrastructure for call 

centers, BPO units or data centers to connect to the world in a 

timely manner. 

“We have a very specific model insofar as it allows companies 

to control how it operates. We believe that the way we support the 

firms enables them to be productive and run the right operation,” 

states Rodríguez. 

The main feature of Vangtel 

is its “shelter program”, that is, 

solutions tailored to each company. 

The Sonora-based firm 

helps to conduct operations 

that require anything between 

one to 500 employees, especially 

those that corporations 

are willing to delegate to a third 

party, such as customer service 

operations. 

With this set-up, the company’s 

clients define the tasks 

they want to hand over and the 

size of the staff, without losing 

ownership and control over important 

data. 

“We know of no other company that does what we do the way 

we do it,” affirms Rodríguez. He continues, “We are an established 

company with over a thousand employees for different customers. 

We are also the largest ‘shelter’ in Mexico.” On the other hand, he 

recognizes some limitations with respect to the size of the human 

Vangtel will always emphasize 

an argument of basic importance 

for any company: Clients become 

more competitive when they set all 

their important, non-core business 

processes in a country that offers 

a highly-skilled workforce and 

lower costs than those of the major 

economies. 


capital available, agreeing that it may not be the best choice for 

companies requiring development centers or call centers with 

3,000 people in them. For smaller operations, however, Vangtel 

believes itself to be the ideal partner in the country. 

Vangtel is part of the industry that is changing the face of 

Mexico for the world, infor- 

mation technology, which has 

been strengthened through 

the efforts of the private sector 

and universities that have set 

themselves the goal of beating 

the Philippines to third place in 

this sector, on a global level. 

Given its status as a hybrid 

industry, Vangtel’s client portfolio 

includes a wide range of 

companies, to which it offers 

about 15 different services 

ranging from development, 

programming and software 

support, to conducting financial 

transactions. 

Vangtel and other companies of the kind in Mexico are turning 

the country into a nerve center for the knowledge society 

that already drives and will continue to drive business in the 

century that is just beginning. n 

www.vangtel.com


arkus nexus, 

made-To-measuRe 

TeChnoloGiCal 

soluTions 

This Tijuana-based company has created a 

technological eco-system capable of providing 

solutions for a wide variety of sectors. Boasting 

an attractive business model, it currently 

exports 70% of its output to the US. 

____ 

by antonio vázquez 

photos courtesy of arkus nexus 

Gasoline, insurance and education 

may not seem like sectors 

that have a lot in common, but 

Arkus Nexus, a Mexican company 

based in the border city of Tijuana, 

Baja California, has come up with a technological 

solution tailored to each. 

The result of a merger between two 

consulting firms specializing in software, 

Arkus Nexus has been in business for over 

ten years and currently exports approximately 

70% of its output to the US. 

In the last decade, the company has 

grown to the point where it now employs 

100 people at its 900-square-meter building 

in the heart of Tijuana’s financial district, 

the birthplace of Mind Hub (Mexico 

Innovation Development), which develops 

apps for iPad and other mobile devices targeting 

mainly the educational sector. 

“Arkus and Nexus fused ten years ago. We 

were both originally consulting and software 

development firms –which has been our 

main line of business– and have exploited 

Tijuana’s geographical location: a bilingual, 

bicultural eco-system that is close to California, 

one of the region’s largest markets,” says 

Arkus Nexus founder Jorge Arroyo. 

A watershed in the firm’s history was its 

participation in the TechBA program back 

in 2006. According to Arroyo, TechBA, 

which backs the international expansion 

of Mexican technological companies, was 

the “shove” it needed to enter the US. Since 

then, growth has been exponential, maxing 

out at 100% in 2012. 

In addition to providing quality technological 

solutions –Arkus Nexus’ client 

portfolio includes the insurance companies 

Quadrant and Metlife, Coca Cola and 

gas stations in the region–, Arroyo attributes 

the company’s success to local talent, 

combined with its geographical location 

and emphasis on showing its customers a 

human face. 

“We can reach San Diego in minutes. We 

can get on a plane and be in West Coast cities 

in the US in no time. Plus, we don’t just 

focus on the technical side of the services we 

render, but on quality and human resources 

on the business side,” Arroyo points out. 

“As soon as you get past the barrier and 

manage to persuade American customers 

to take off their blinders in relation to 

Mexico, they realize work methods are 

similar in both countries,” interjects Felipe 

Fernández, Director of Special Projects 

at Arkus Nexus. “We have customers who 

come to us and say they feel like they’re 

working in Silicon Valley. Our products 

sell themselves and I can guarantee that of 

every ten executives who come to us, eight 

leave extremely satisfied with what we do.” 

Over the years, Arkus Nexus has come 

to specialize in the development of outsourcing 

software, programs for insurance 

companies and gasoline stations, and 

solutions for the retail sector and medium-sized 

companies whose needs can’t be 

met by small companies, but that are too 

small to be appealing to larger ones. 

“There are chains with 10 or 30 stores 

for whom the small target isn’t practical 

but with whom larger companies aren’t 

always willing to work. They have budgets 

of 2, 3, even 4 million pesos, which 

can be enough to do something interesting, 

but this medium-sized market lacks 

providers and that’s where we come in 

with solutions tailored to their needs,” 

explains Fernández. 

minD hub, a Technological 

eco-sysTem 

With Arkus Nexus well on the road 

to consolidation, Arroyo decided it was 

time to take the next step. His idea was to 

bring together local technological companies 

under one roof. An idea that materialized 

in the form of the Tijuana-based 


In addition to providing 

quality technological 

solutions, Arroyo 

attributes the company’s 

success to local talent, 

combined with its 

geographical location and 

emphasis on showing its 

customers a human face. 

initiative Mind Hub (Mexico Innovation 

Development). 

Managed by Ulises Elías, a Mexican 

specialized in innovation in Denmark, 

Mind Hub has six companies that develop 

cutting-edge products like Ed Ninja, a 

series of iPad apps designed for children 

with autism. 

In April 2012, Mind Hub launched its 

first iPad apps for children with autism, 

dyslexia and other learning disorders. That 

same year, Mexico’s National Council of 

Science and Technology (CONACyT) selected 

Mind Hub as a beneficiary of the 

Support for Innovation Program on the 

basis of those applications. 

Although its main market is in the US, 

Arkus Nexus and Mind Hub aim to expand 

their Latin American operations to the 

Southern Cone by 2015. 

“We want to expand our operations 

beyond Tijuana, leverage more regions in 

Mexico and take on the retail and gasoline 

sectors in Latin America,” says Arroyo. “As 

for the commercial side,” he concludes, “we 

have our sights set on larger markets and 

the natural step is to position ourselves 

among larger customers, larger firms.” n 

www.arkus-solutions.com


An EnAbling 

MArriAgE 

of Business and 

Technological Know-How 

enaBle’s knoW-hoW 

and seRviCes have puT 

iT aT The Top of iTs 

field in laTin ameRiCa 

in a RelaTively shoRT 

spaCe of Time. 

____ 



Information is power. In the case of Enable, 

it has given the company the muscle 

to consolidate its business and help 

other companies make the transition 

to a high-performance culture by measuring 

their goals and finding solutions to achieve 

them, says the firm’s founding partner and 

commercial director Héctor Salgado. 

Unlike other consulting companies 

specializing in finances or technological 

know-how, Enable leads the way in both 

fields with a team of around 100 business 

and technology experts versed in strategic, 

financial and operating management 

methodologies. 

The company’s services range from strategic 

management models and financial 

planning solutions to business intelligence 

and business process modeling (BPM), including 

a deep knowledge on SAP ERP and 

GRP (Government Resource Planning) 

“Technology is a tremendous facilitator, 

but before you can apply it, you have to get 

a clear understanding of the customer’s activities 

and needs,” explains Salgado. 

Enable’s founding partner and commercial 

director states this because he often encounters 

companies of all shapes and sizes 

that aren’t clear on which indicators they 

should be measuring to determine whether 

or not they are headed in the right direction. 

Fortunately, Enable has that knowledge and 

can design indicators, offer key solutions, 

design and implement automated solutions, 

provide technical support and introduce efficient 

strategies to put its customers firmly 

in the high-performance leagues. 

“When a company knows what to measure, 

how to measure it and what to keep track 

of, it starts focusing on the most important 

aspects of its business,” affirms Salgado. 

In Mexico, some 100 customers have 

witnessed the benefits of Enable’s expertise, 

from the insurance company Allianz, 

the pharmaceutical company AstraZeneca, 

the manufacturer of Mercedes Benz 

automobiles Daimler México, Genomma 

Lab, the gas distributor Tractebel, Banco 

Compartamos, and the Heineken brewery 

to state governments and other government 

agencies like the Federal Electoral 

Institute (IFE) or the National Workers 

Housing Fund Institute (Infonavit). 

Founded in 2000, Enable already has 

a presence beyond Mexico’s borders, rendering 

services to the representative offices 

of Grupo Zapata –a Mexican-headquartered 

packaging solutions provider– in 

Mexico, Guatemala and Costa Rica; Banco 

de Bogotá and Grupo Phoenix in Colom- 

bia; Grupo Mundial and the Heineken 

representative office in Panama; Polibrasil 

(Hall of Fame) and VW Brasil in Brazil; 

and Financiera Crear and the Essalud social 

security institute in Peru. 

The team’s know-how and the fact that its 

financial advisors are also versed in technology 

have been advantageous from day one. 

Héctor Salgado recalls that Enable 

began operating with just six employees 

experienced in the Enterprise Resource 

Planning (ERP) system developed by SAP, 

a multinational specializing in business 

management software. 

“It was such a trouble-free birth that before 

the month was out we had a major customer: 

Grupo Zapata [whose technological 

platform and transaction information systems 

are still managed by Enable]. We immediately 

went out looking for more market.” 

And found it, thanks to the firm’s expertise 

in financial planning, its methodologies 

that foster an effective strategy 

execution, and solutions that provide visibility 

through measurement. This specialized 

knowledge gives the Enable team a 

competitive advantage over other IT companies 

operating on the continent. 

Enable’s methodology and its alliances 

with some of the world’s leading IT software 

developers –SAP, Corporate Planning and 

OpenText– have positioned it as the company 

with the largest cache of strategic management 

tools in all of Latin America. “Most 

of our consultants are developed at home. We 

nurture and train our human resources.” 

Using financial and non-financial data, 

such as information about processes and 

customers, the Enable team designs maps 

that “can be applied to the company as a 

whole or in each of its areas via independent 

processes” using SAP software or Vision 

Engager for managing strategy and 

monitoring performance. 

What sets this Mexican firm apart from 

others like it is that it transfers knowledge 

to its customers so they have the knowhow 

to maintain the system themselves at 

the end of the process. 

The services Enable renders have taken it 

as far afield as Peru, where it has opened an 

office and is attracting customers. Now it is 

looking to expand to Chile. 

What do Chilean customers want? 

The same as anywhere else, says Salgado, 

“to achieve high performance with the 

aid of specialized but versatile tools and 

technologies.” n 

www.enable.com.mx 

Negocios ProMéxico 27


mexico’s mining 

indusTRy, WoRTh 

Its Weight in Gold 

The statistics don’t lie: Mexico 

is not only the world’s leading 

silver producer, but the top 

destination for investment 

in prospecting activities in 

Latin America and the fourth 

worldwide. Rated the country 

with the fifth-best environment 

for doing business in the mining 

sector in terms of political risk, 

it is the third most attractive 

to the Toronto Stock Exchange, 

making mining one of the most 

strategic productive sectors 

to the country’s social and 

economic development. 

____ 

by negocios 


Most of us aren’t aware of it, 

but the metals and minerals 

produced by the mining 

industry are essential to our 

everyday lives and can be found in everything 

from cutlery and jewelry to television sets, 

microwave ovens and the electrical wiring in 

homes. Even toothpaste contains minerals. 

In short, mining is the core to the world’s 

economic and social development, and 

Mexico is a major player in the industry. The 

numbers speak for themselves: in terms of 

political risk for mining investment, Mexico 

is ranked fifth, just 14 points behind Australia, 

which is number one on the annual 

ranking published by Behre Dolbear, a consulting 

firm that has included Mexico in its 

top five since 2006. 

Mexico is the third-most-attractive 

country to the Toronto Stock Exchange, 

where 58% of the world’s public mining 

companies trade. 

Rated among the world’s top ten producers 

of 17 minerals, Mexico’s mines 

produce metallic minerals like iron and 

coal; precious metals like gold, silver and 

platinum; base metals like copper, nickel 

and aluminum; non-metallic minerals 

like gypsum and clays, which are used 

in the construction industry; industrial 

materials like china clay and bentonite; 

and gemstones like diamonds, sapphires 

and rubies. 

As of the first half of 2012, Mexico was 

the world’s leading silver producer and 

has climbed the ladder to position itself 

as the tenth-most-important producer 

of gold and copper, according to the international 

consulting firm Metals Economics 

Group (MEG). 

Mexico’s Ministry of Economy (SE) estimates 

that the mining industry employs over 

309,000 people directly and creates another 

1.6 million indirect jobs. Between 2007 and 

2012, investment in the sector rose 381.6% 

to 24 billion usd, while the 2006-2012 investment 

goal is expected to be surpassed by a 

substantial 64%. 

This growth in investment is no coincidence. 

According to MEG, Mexico is 

now the top destination for investment in 

prospecting activities in Latin America 

and, as of the end of 2011, number four on 

the list of 121 countries that received investment 

in prospecting activities, coming 

in just below Canada, Australia and 

the US. 

At the close of 2011, Mexico had 23 worldclass 

deposits and another six classified as 

super-world-class. 

At the end of 2012, there were 285 companies 

participating in 853 mining projects the 

length and breadth of the country. 

a golD mine of informaTion 

The Mexican Geological Service (SGM) is 

a government agency that reports to the SE, 

whose job is to promote the efficient use of 

the country’s mineral resources and generate 

geological data. 

Recognized as a leader in its field, the 

SGM sets the bar for similar institutions in 

other countries and has been instrumental 

in consolidating Mexico as the world’s top 

destination for investment in prospecting 

activities per square kilometer. 

Drawing up geological mining, geochemical 

and geophysical maps is the SGM’s main 

line of work and a vital one at that, facilitating 

as it does land, social and economic planning. 

By the same token, the availability of 

systematized digital maps illustrating the 

nature of surface rocks and the subsoil makes 

it possible to interpret and track geological 

changes, and assess reserves of natural, nonrenewable 

resources. 

Mexico has geological mining, geochemical 

and geophysical maps on a scale 

of 1:250,000 covering the entire country, and 

geological mining and geochemical maps on 

a scale of 1:50,000 covering 668,214 square 

kilometers (34.1% of the country). 

Thanks to the SGM’s map-making efforts, 

Mexico now has its first Geochemical 

Atlas, which illustrates mineral deposits in 

the various regions of the country, thereby 

increasing the prospector’s chances of 

striking it lucky. 

A total of 530 prospective sites with mining 

potential –mainly gold, silver, lead, zinc, 

copper, manganese, phosphorite, sulfur, iron, 

titanium, molybdenum, rare earth metals, 

lithium, zeolites, strontium, fluorite, baryte, 

gypsum and calcite– have been identified, 

76 of which are already prospecting targets, 

67 have been concessioned and 27 have been 

tendered to the private sector. 

With the aid of advanced communications 

and information technologies, the SGM 

has been able to compile, organize and manage 

the information it has collected over the 

last six decades and integrate it with data 

generated on a daily basis on a public database, 

which can be accessed free of charge at 

www.sgm.gob.mx. 

Another useful tool is the GeoInfoMex 

database (mapasims.sgm.gob.mx:8399/geoinfomexsgm), 

created by the SGM to meet 

demand for timely, accessible, user-friendly 

geological data. 

According to MEG, 

Mexico is now the 

top destination 

for investment in 

prospecting activities 

in Latin America and, 

as of the end of 2011, 

number four on the list 

of 121 countries that 

received investment in 

prospecting activities, 

coming in just below 

Canada, Australia and 

the US. 

The first and only database of its kind, 

GeoInfoMex is updated in real time and can 

be accessed using mobile devices, facilitating 

the decision-making process for investors, 

and saving them time and money no matter 

where they are in the world. 

In addition to the geological information 

compiled by the SGM, GeoInfoMex 

includes transparent data on mining property 

(Mining Office at the SE), geographical 

information (National Institute of Statistics 

and Geography, INEGI), agrarian nuclei 

(National Agrarian Register), protected 

natural areas (National Commission 

for Protected Natural Areas, CONANP), 

the Earthquake Census (National Seismological 

Service and the Geology Institute 

at the National Autonomous University of 

Mexico) and catchment areas (National 

Water Commission, CONAGUA). 

GeoInfoMex boasts over 4.5 million specialized 

data entries, classified by topic and 

region, and because the information is fully 

integrated, the user can visualize graphics 

and combinations thereof, which, in turn, are 

linked to their respective descriptions. 

The most widely consulted geological database 

in the country, GeoInfoMex has indubitably 

done its part in attracting investment 

to Mexico’s mining industry. n

infographic oldemar 


Mexican 

MINING 

Industry 

Between 1994 and 2011, mining 

industry’s participation in Mexico’s 

Gross Domestic Product (GDP) 

grew 1.5%. Today, this sector 

contributes with 4.9% of the 

country’s GDP. 

MEXICO IS AMONG THE TOP 10 PRODUCERS OF 17 MINERALS: 

Ranking 

# 

A 

00.0 

Mineral 

Percentage 

in global 

production 

PRODUCTION 

In 2011 

20% 

non-metallic 

minerals* 

MAIN 

PRODUCTS 

26% 

Silver 

22% 

Gold 

18% 

Copper 

7% 

Zinc 

VALUE 

20.8 

billion USD 

*Not including gas and oil. 

1 

Ag 

21.8 

Silver 

80% 

metallic 

minerals 

Precious metals 

represent 47.4% of 

total production value 

2 

F 

20.0 

Fluorite 

3 

Zacatecas 

22.8 

Bi 

11.4 

Bismuth 

Guerrero 

4 

3 

Ce 

10.6 

Celestite 

3 

Sonora 

25.3 

Chihuahua 

10.2 

Coahuila 

6 

Durango 

6 

Wa 

9.3 

Wallostonite 

5 

Cd 

7.4 

Cadmium 

TOP PRODUCERS 

Percentage of Mexico’s total mining production 

5 

Pb 

5.3 

Lead 

San Luis Potosí 

5 

5 

D 

4.9 

Diatomite 

5 

Mo 

4.4 

Molybdenum 

VALUE 

17.01 

billion USD 

Au 

34 

Gold 

Ag 

21 

Silver 

Cu 

15 

Copper 

Fe 

Iron 

Pb 

5.5 

Lead 

MAIN 

EXPORTED 

MINERALS 

Percentage of total mining exports 

9 

In 2012, mining industry 

was Mexico’s fourth largest 

income source, after 

automotive, electronic and 

oil industries. 

7 

Zn 

5.8 

Zinc 

8 

Gy 

2.6 

Gypsum 

8 

B 

4th 

1.8 

Baryte 

US 

57.4 

8 

Mn 

1.3 

Manganese 

8 

As of December 2012, mining industry 

was responsible for 328,555 direct jobs 

and 1.5 million indirect jobs in Mexico, 

according to data from the Mexican 

Institute of Social Security (IMSS). 

G 

0.8 

Graphite 

UK 

4.3 

10 

Au 

4.3 

Gold 

South Korea 

4.7 

Switzerland 

4.4 

10 

NaCl 

3.5 

Salt 

MAJOR EXPORT MARKETS 

Percentage in Mexican exports 

10 

Cu 

3.1 

Copper 

China 

10.4 

Sources: INEGI/General Directorate of Mining Regulation (Ministry of Economy)/ Mexican Geological Service (SGM)/US Geological Survey/Banco de México.

infographic oldemar 


San Felipe 

Minera Frisco 

Au 

San Francisco 

Timmins 

Au 

37 

El Arco 

Grupo México 

Au Cu 

2,150 

El Boleo 

Baja Mining 

Co Cu Zn 

El Gallo 

McEwen Mining 

Au Ag 

Los Metates 

Chesapeake Gold 

Au Ag 

La Fortuna 

Argonaut Gold 

Au 

New 

mines in 

operation 

2010- 2012 

BC 

1,169 

La Preciosa 

Pan American Silver 

Au Ag 

Projects under 

construction 

and/or advanced 

exploration stage 

Soledad Dipolos 

Fresnillo-Newmont 

Au Ag 

85 

SONORA 

La Colorada 

Argonaut Gold 

BCS 

Investment 

(million USD) 

La Bolsa 

Minefinders 

Au 

Au 

Ag 

Au 

Ag 

Luz de Cobre 

Red Tiger Mining 

SINALOA 

El Toro 

Au 

First Majestic 

Ag 

Santa Elena 

Silver Crest 

Au 

45 

160 

Las Mercedes 

Yamana Gold 

Au Ag 

194 

El Saucito 

Au 

Fresnillo Plc 

Ag 

CHIHUAHUA 

DURANGO 

309 

ZACATECAS 

El Porvenir 

Minera Frisco Au 

Ag 

MICHOACÁN 

Angangueo 

Grupo México 

Au 

Ag 

140 

64 

95 

11 

Ag 

Ag 

Ag 

Ag 

308.5 

Au 

Au 

Au 

Au 

OAXACA 

Creston-Mascota 

Agnico-Eagle 

Concheño 

Frisco 

La Cieneguita 

Pan American Goldfields 

Ag Mo Zn Cu Bahuarachi 

Jinchuan 

203 

18 

50 

Guadalupe y Calvo 

Ag Au 

AuRico Gold 

Zn 

Ag 

Ag 

VERACRUZ 

Pb 

Au 

Au 

Velardeña 

Peñoles 

Camino Rojo 

Goldcorp 

San José 

Arian Silver 

El Águila 

Gold Resources 

Unimisur 

Mexichem 

S 

San José 

Fortuna Silver 

Au Ag 

100 

50 

MINERAL 

Au 

Gold 

Ag 

Silver 

Mo 

Molybdenum 

Zn 

Zinc 

Cu 

Copper 

Co 

Cobalt 

Pb 

Lead 

S 

Sulfur 

1st 

5th 

INVESTMENT 

2,156 

‘07 


Mexico is the leading investment 

destination for the exploration of 

non-ferrous minerals in Latin 

America and fourth worldwide 

(Metals Economics Group). 

It is the world’s fifth safest 

country for mining 

investment, after Australia, 

Canada, Chile and Brazil 

(Behre Dolbear Group). 

Between 2007 and 2012, 

25.24 billion USD 

have been invested in Mexican 

mining industry. 

According to data from the 

General Directorate for 

Mining Development 

(Ministry of Economy) as of 

December 2012 there were 

285 mining companies with 

foreign capital operating in 

Mexico, in more than 853 

mining projects. 

Investment in 

MINI NG & 

METALLURGICAL 

industry (million USD) 

7,647 

3,656 

3,316 

2,858 

‘08 

‘09 

‘10 

5,612 

‘11 

‘12 

Source: Mexican Mining Chamber (CAMIMEX).


Treasure 

of the Sierra 

____ 

by graeme stewart 

photos courtesy of torex gold 

mexiCo has a 500-yeaR old mininG 

TRadiTion, fRom The ConquisTadoRs 

To pResenT day invesToRs. The 

mineRal-RiCh naTion has WelComed 

pRospeCToRs of CoppeR, zinC and, 

espeCially, silveR. BuT iT is Gold, 

ThaT mosT pReCious of meTals, 

ThaT has CapTuRed The imaGinaTion 

of a Canadian Gold mininG 

Company, CuRRenTly dRillinG in The 

mounTains of GueRReRo. 

Torex Gold, the Toronto-based mining 

company, is currently drilling for gold 

in the Sierra Madre del Sur in the state 

of Guerrero, and by doing so is helping 

to maintain a 500-year-old tradition of mining for 

precious metals in Mexico. 

The Conquistadors, followed by the colonials of 

New Spain, and most recently the Mexicans themselves, 

built hundreds of mines, silver mines in 

particular, throughout the country, making household 

names of the likes of Taxco, Zacatecas and 

Guanajuato. 

But it is gold that has attracted Torex Gold to 

the mountains of the south. The company expects 

all financing for what has become known as the 

Morelos Gold Project to be in place by the summer 

and admits to being more than a little excited by its 

future prospects in Mexico. 

President and CEO Fred Stanford told Negocios 

that the company is currently in the second round of 

financing talks with 10 banks regarding the project. 

Torex is expected to require 675 million usd to 

bring the project to full commercial production, 

with 383 million usd already raised in a bought deal 

that closed in October 2012. 

The financing talks had been delayed as a result 

of Hurricane Sandy, Stanford says, but added there 

was “lots of interest,” with each bank looking to 

invest about 50 million usd. 

“Once initial term sheets are signed, the banks will 

do their due diligence. We expect this whole process to 

be finalized in the first half of this year,” says Stanford. 

Exploration work at Morelos is continuing, Stanford 

adds, including at three magnetic anomalies at the south 

of the Balsas River section of the 29,000-hectare property. 

The company has hired the Chief Operating Officer 

(COO), the general manager, the mill and mine managers 

and appointed a contractor to oversee construction 

of the project, Stanford states. 

Late last year, Gabriela Sánchez, VP of investor relations, 

told BNamericas construction is expected to 

begin in mid-2013. That was confirmed by Stanford: 

“The strategy has always been to deliver on our internal 

goal of 5 million ounces of gold north of the Balsas River 

and to find new deposits south of the river. We are also 

encouraged by the support of the ejidos, the community, 

and all levels of government, as we work together toward 

the objective of developing a world-class mine that will 

benefit all stakeholders involved.” 

Indeed, Stanford is very impressed with the level 

of support from federal and local government and the 

clarity of Mexican mining laws and regulations. “To 

have such clear policies and procedures from national 

and local government is a great boon. It has helped us 

tremendously,” he affirms. 

He is also impressed with the quality of Mexico’s 

universities specializing in engineering and geology 

and promised that in the future, Torex Gold will have 

close links to universities producing such high caliber 

graduates. 

The Morelos Gold Project is located 180 kilometers 

southwest of Mexico City in the state of Guerrero. The 

project, spread over 29,000 hectares, includes the development 

of Los Guajes and El Limón gold deposits 

alongside additional prospects. The project is owned by 

Torex Gold Resources (earlier Gleichen Resources) and 

is currently in the advanced stage of development. Torex 

began drilling at the project site in 2010, after acquiring 

the asset from Teck in 2009. 

The project was developed in a two-phase work program. 

Phase one included exploration, infill and step-out 

drilling, reviews relating to resource model, additional 

recommended metallurgical tests and a mineral resources 

update at a cost of approximately 15 million usd 

per year. Phase two included a feasibility study with a 

cost of approximately 10 million usd. 

Exploration at the project area has been carried out 

since 1998. The activities included local and detail mapping, 

sampling of rock, silt and soil, trenching, drilling 

including reverse circulation (RC) and diamond, ground 

induced polarization (IP), geophysical surveys, mineralization 

characterization studies and sample testing. 

Torex Gold Resources Inc. is a well-funded, growthoriented 

Canadian mining company engaged in the exploration 

and development of precious metal resources 

with a focus on gold. 

The Morelos Gold Project is only a four hour drive 

from Mexico City on paved roads. It is easily accessible 

and located near established centers of supply for 

materials and workers. Power for any mining operation 

would be available from an 115kV line that crosses over 

the Project and water for process and potable use could 

be sourced from nearby springs. The Project’s current 

NI 43-101 mineral resource estimate stands at 4.8 million 

ounces of gold in the measured and indicated category 

plus an additional 600,000 ounces of gold in the 

inferred category. 

With a management team in place, 100% ownership 

of a solid gold project with superb exploration upside 

and a strong balance sheet, the company is committed to 

significantly increase the current resource base through 

an aggressive exploration program, while simultaneously 

advancing the Morelos Gold Project into production. 

Stanford states: “The company’s focus on drilling 

the magnetic anomalies in the Media Luna area has 

been very successful in discovering both high-grade 

gold intersections and thick intervals of potentially economic 

gold mineralization. The two magnetic anomalies 

drilled to date, which cover approximately 391 hectares, 

appear to represent very large gold mineralizing systems 

that warrant extensive additional drilling to define the 

size and grade of the gold zones. The drilling within the 

magnetic anomalies has resulted in the discovery of 

local areas containing very high-grade gold along with 

significant copper and silver values.” 

It may be an old story, familiar to Mexicans over the past 

five centuries, but the Mexican tradition of mining for precious 

metals continues well into the 21st century. n 

www.torexgold.com


Mexico is our Star Horse: 

golDcorp 

____ 


photos courtesy of goldcorp 

MexIco IS wrItten 

In golD letterS. In 

the 21St century the 

MIneral wealth of 

the country StIll 

DrIVeS the tIMeleSS 

InDuStry of precIouS 

MetalS exploratIon. 

golDcorp IS lIVIng 

proof of the fact. 

Goldcorp is the case that confirms 

that Mexico remains that horn of 

plenty of which so much was said 

in past centuries. The country 

pays rich dividends to the Canadian mining 

company, meaning its goal is to consolidate 

what has been achieved so far and to grow 

with new investments. 

Goldcorp owns Peñasquito, the largest 

gold mine in Mexico and 35th largest in 

the world, located in the municipality of 

Mazapil, Zacatecas. 

Since the second half of the past decade, 

the company has directed all its efforts to 

this site located in the semi-desert plain on 

the state border between Zacatecas and Coahuila 

and where it has discovered a huge potential 

for the exploitation of gold, as well as 

silver, zinc and lead. In early 2012, the mining 

company estimated that by the end of the 

year, it would recover between 370,000 and 

390,000 ounces of gold. 

Now, a year later, Horacio Bruna, senior 

vice president of operations in Mexico, estimates 

that much of the 300 million usd that 

Goldcorp will invest across their Mexican 

facilities –at El Sauzal (Chihuahua), Los Filos 

(Guerrero) and Peñasquito– will go to the 

latter. “Peñasquito is a young company that 

has a lot to contribute,” Bruna says. 

Two projects currently under development, 

Noche Buena and Camino Rojo, are 

in fact located on land near Peñasquito. The 

first has proven resources of 1 million ounces 

of gold and 30 million of silver while the second 

could provide up to 2.8 million ounces of 

gold and 52.6 million ounces of silver. 

Peñasquito itself, a mine consisting of two 

open pits, Peñasco and Chile Colorado, already 

employs 2,695 people and has an estimated 

lifespan of 22 years. Soon it will oust 

Goldcorp’s mine in Guerrero, which currently 

produces an average of over 350,000 ounces 

of gold annually and employs around 2,120 

people in the municipality of Mezcala. It 

will be far larger than El Sauzal, which produces 

an average of 80,000 ounces of gold 

per year and where the company continues 

to conduct exploration work to enable it to 

extend its life beyond 2014. 

Zacatecas will thus enable Mexico to 

maintain its leading position among the 

portfolio of countries in which Goldcorp 

has investments, namely, Canada, the US, 

Guatemala, Argentina and Chile. 

“Mexico is responsible for 34% of Goldcorp’s 

gold production worldwide ,” confirms 

Bruna. 

“When we say that Mexico is our star 

horse it is because we believe it is economically 

and politically stable, it is very friendly 

and we are very happy to be in it,” he adds. 

In this way, Mexico has contributed to 

Goldcorp ranking in recent years as one 

of the strongest mining companies in the 

world, first with El Sauzal, where the Canadians 

have worked since 2005, and now 

with the enormous project in Zacatecas. It 

will continue to contribute even further to 

the ongoing growth that the precious metals 

giant foresees over the next five years, a 

period that could see its global production 

of gold rise to 4.2 million ounces per year. 

“We anticipate that 2013 will be similar 

to 2012, production will remain in the order 

of 770,000 ounces (across the country) and 

investment will be 300 million usd spread 

over the three mines, but mainly in Peñasquito,” 

reveals the vice president in Mexico. 

susTainable growTh 

Goldcorp writes the word “sustainability” 

in large letters. According to Bruna, it is 

important for the company to have reached 

a point of sustained growth after investing 

heavily both in their mines and in the communities 

where these are located. “you can’t 

just come, dig and leave; you have to leave a 

structure behind you,” he emphasizes. 

The added value of Goldcorp, he continues, 

lies in the support it provides for the 

development of the communities around 

their projects and the fact that practically 

all the human capital of each mine is hired 

in the same place. Bruna highlights, for 

example, the case of Peñasquito, where 

the company has proven the mining experience 

of the inhabitants of this area of 

Zacatecas, who have a long tradition in 

exploiting these resources and are now 

seamlessly integrated into the work of a 

technological and modern mine and the 

sustainable mining of the 21st century. 

Moreover, professional posts have been 

taken up by graduates in relevant fields 

from the National Autonomous Univer- 

sity of Mexico (UNAM), the University of 

Guanajuato (UGTO) and the University of 

Zacatecas (UAZ). 

“We have enabled several professional 

exchanges, with Mexicans working in our 

mines in Canada and foreigners coming to 

work here,” says Bruna, though he clarifies 

that in the case of El Sauzal and Peñasquito, 

all the staff is Mexican. 

The standards flown by Goldcorp include 

monitoring the safety of its workers, 

their quality of life and the future prospects 

that they can generate as a result of 

their work in the mining developments. 

“This is about involving others in the company’s 

success,” declares Bruna. 

Everything indicates that Goldcorp is 

here to stay in Mexico. The vice president 

of operations in the country sees no reason 

for the company not to maintain the pace 

of exploitation and exploration it has kept 

up so far. The country retains, in his view, 

the positive indicators relating to the legal 

framework and financial situation that Goldcorp 

analyzed before setting up in the field. “I 

would say that, generally speaking, there is 

economic stability that allows us to conduct 

our business our way, as well as clear rules 

that give us peace of mind,” he concludes. n 

www.goldcorp.com


Salt: 

mexiCo’s 

WhiTe Gold 

exportaDora De Sal, 

a coMpany unDer 

both publIc anD 

prIVate ownerShIp, 

haS poSItIoneD 

MexIco aMong Major 

Salt proDucerS 

globally. 

____ 

by mariana morales 


Although salt is a product of 

common use, we rarely think 

about where it comes from 

and its range of applications. 

Salt has over 14,000 known uses and is 

present in virtually all aspects of everyday 

life. For instance, few people know 

that the largest use of salt is in the chemical 

industry, followed by highway deicing 

and human consumption. 

Worldwide production of salt stands 

at about 300 million tons a year and 

China is the largest producer globally, 

with annual output of 70 million tons, 

followed by the US, with a production of 

45 million tons per year. 

Mexico operates the world’s largest open 

salt works, Exportadora de Sal (ESSA), a 

Mexican company created in 1954 to produce 

and export marine salt. 

Thanks to ESSA, Mexico has positioned 

itself as the tenth largest salt producer glob- 

ally. It is also the largest in Latin America, 

according to data from the company and 

the Mexican Association of Salt Industry 

(AMISAC). 

ESSA has an installed annual production 

capacity of 7.5 million tons of salt, of 

which 70,000 are table salt. At the end of 

2011, the Mexican company had a 26% 

share of the international salt market, its 

main market being the Pacific basin, where 

its share reached 35%. 

The countries and regions to which ESSA 

makes most of its exports are Japan, the US, 

Canada, Korea, Taiwan and Central America. 

In 2011, ESSA achieved a historic volume 

of sales –7.6 million tons– including exports 

of 1 million tons to China and Taiwan. In 

terms of production units, the company remained 

the main supplier of salt to Japan, 

with a market share of 43%. 

ESSA is a majority state-owned company, 

affiliated to the Ministry of Economy (SE) 

through the Department of Mining. It is located 

in the town of Guerrero Negro, in the 

Mulegé municipality of Baja California Sur, 

730 kilometers from the city of Tijuana, 

Baja California. The Mexican government 

holds 51% of the shares in the company, 

through the Mining Development Trust 

(FIFOMI), while the Japanese Mitsubishi 

Corporation has owned 49% of the share 

capital since November 1976. 

Currently, the company has about 

1,200 employees, including workers, technicians 

and managers, and pays mining 

rights on four concessions. Through various 

channels, ESSA’s annual contributions 

to the Mexican Treasury average 

12.5 million usd per year. 

In recent years, ESSA has recorded an 

average positive balance of 65 million usd a 

year. At the close of 2011, net sales totaled 

nearly 132 million usd, with a net profit of 

more than 18 million usd. 

From 2006 to 2011 the company’s 

annual production increased from 6.6 

million tons to 7.3 million, with a record 

high of 7.4 million tons recorded in 2008. 

Most of the production is for the chemical 

industry (75%), followed by highway 

deicing (14%), general purpose (5%) and 

water treatment (5%). 

Furthermore, the ESSA table salt plant 

produces different types of the mineral for 

human consumption, such as high purity 

and ground salts, which are packed in different 

presentations for the end consumer 

and the food processing industries. 

High purity salt is produced from concentrated 

brines using a process patented 

by the company’s research and development 

department. 

ESSA has a system that is unique in the 

global salt industry, designed to suit the 

company’s natural environment. It is a process 

that allows the return of residual brine 

to the ocean without having an impact on 

the environment. 

In addition, the company generates the 

electricity it consumes and has installed a 

fleet of tugs and barges, urban infrastructure 

in Guerrero Negro and Isla de Cedros, 

and a treatment plant for drinking water. 

Between 2006 and 2012, ESSA reduced 

its consumption of diesel by 3.65%, from 

1.37 liters to 1.32 liters per ton moved. 

The offices and workshops of ESSA, and 

the Guerrero Negro community in general, 

have reduced power consumption by 

12.9%, from 7.1 to 6.2 million kWh per year. 

Similarly, in Guerrero Negro freshwater 

consumption has been reduced by 11.3%, 

from 318 to 282 liters per person per day. 

This represents estimated daily savings of 

9.072 cubic meters, equivalent to 3,311 cubic 

meters per year –an important effort to 

preserve the resource in an extremely arid 

zone like the Vizcaíno Desert. 

The plant’s Integrated Management 

System is certified ISO 9001:2008 with 

regard to quality and ISO 14001:2004 in 

relation to environmental conservation. 

In the last five years, ESSA has implemented 

a number of actions to improve its 

financial and logistics processes, as well 

as its operations with a robust technology 

platform. As a first step, the company 

successfully implemented a SAP ERP system 

as the basis for transactions, thereby 

automating operations and enabling 

an integrated and reliable system. It has 

also automated HR and payroll processes, 

together with quality, ecology and safety, 

among others. 

Besides increasing its production of 

salt, ESSA has also improved its production 

processes, specifically with regard to 

the physical and chemical quality of the 

salt, increasing by 7% the number of grains 

larger than 1/4 inch (reference size), from 

35% to 42% of the salt produced. That enables 

better and more efficient washing and 

draining of the salt, resulting in drier and 

purer shipments. 

Moreover, developments were made in 

the washing plant facilities to take advantage 

of the improved quality. With this new 

infrastructure and equipment, a 50% reduction 

in losses was achieved due to salt 

dissolving in the washing process, increasing 

production capacity by 800,000 tons. 

In that way, ESSA is ensuring that salt 

remains a profitable business for Mexico 

and that it remains one of the leading global 

producers of this white gold. n 

www.essa.com.mx



korea is in 

Zinc wiTh 

mexico 

Half of Mexico’s zinc output 

is bought by Korea Zinc, the 

largest and most prestigious 

zinc producer in the world. 

____ 



Half of the zinc currently produced in Mexico is distributed 

across the world thanks to one of the world’s 

most prestigious firms, Korea Zinc. There must be 

something special about Mexican production of this 

metal, since the company is planning to expand its extraction 

operations and processing plants in the country over the coming 

years, according to Elías Ojeda Díaz, country representative and 

executive consultant for the multinational. 

It is not merely a question of the quality of Mexican zinc, which is 

used mainly for industrial purposes, especially for galvanizing pipes 

–such as those used in oil refineries– and steel tools. The metal is 

also in demand in the chemical and pharmaceutical industries, for 

which zinc oxide compounds have been developed, which prevent 

fungal infestations and can be used to treat inflammations. 

Alongside quality, Ojeda adds that the country offers very 

secure and favorable conditions for international trade in minerals 

and gives several examples of these advantages: “The tax 

and legal frameworks are trustworthy; tariffs are low and stable 

and there is a processing infrastructure that ensures constant 

supply,” he points out. 

Korea Zinc first arrived in Mexico with a five-person office 

at the start of the new century, having underpinned its prestige 

across the globe. 

The company was first created during the Second World War 

as a smelter belonging to the Korean government, for military purposes. 

When the war ended, the state company turned its efforts to 

working on industrial applications. 

In 1974 the company was privatized. At that stage it was a 

small smelter with a market focused on Korea and neighboring 

countries. In 1990 its capacity for growth, high quality processes 

and environmentally sustainable policies enabled it to be floated 

on the Korea Stock Exchange. This provided the platform for very 

rapid growth on the global smelting market. 

Today it is the largest smelter of zinc concentrate in the world, 

processing over 2 million tons a year. 

A significant part of that success, no less than 10%, is due to the 

extraction and smelting work that is carried out in Mexico, a country 

which has engaged in mining since pre-Hispanic times –an 

activity that in the early 21st century strategically contributes to 

the country’s gross domestic product (GDP). 

During the first stage of its relationship with Mexico, Korea 

Zinc simply bought large quantities of the metal concentrate from 

local and transnational intermediaries. 

Soon after that, once it saw the quality of the product, the smelting 

process and the ease of export, the Asian company took a further 

step, purchasing the metal directly. Initially, in the middle of the last 

decade it bought the entire output of Mexico’s main zinc extractor, 

based in the Peñasquito complex in the state of Zacatecas. 

The third step taken by the Asian company was the creation of a 

diplomatic representation office in Mexico in mid-2011. 

Today the favorable conditions for Korea Zinc’s growth in 

Mexico remain. “If we are buying half of all the zinc that is extracted, 

that means that the other half is still available,” Ojeda 

Díaz indicates. 

To the volume of production may be added the country’s 

facilities for export of the mineral through the ports of Lázaro 

Cárdenas, Michoacán and Manzanillo, Colima, both on the 

Mexican Pacific coast and both boasting first-class infrastruc- 

ture, such as high-quality and secure storage facilities for material 

in transit, states Ojeda Díaz. 

The favorable climate for the mining industry has led the Asian 

firm to plan new projects in the country. When the smelter decided 

to make direct purchases of zinc, it also established projects of processing 

plants with Mexican partners in the states of Durango and 

Chihuahua, which it will expand in the coming years to double their 

current capacity. 

Korea Zinc also plans to purchase a processing plant, buy zinc 

mines and start up a number of projects for the mining and smelting 

of lead. “We have a portfolio of 30 outright purchase or investment 

projects in the country,” says Ojeda. 

What advantages do miners based in Mexico obtain from 

the Korean multinational? “We are end consumers, not retailers. 

We have competitive terms of purchase, since we do not 

have significant administrative overheads and therefore do not 

charge that to our suppliers,” he explains. 

In the words of the executive, to these advantages may be added 

security of purchase, rapid payment and continuous consumption 

of any amount of zinc concentrate. “We do not speculate; we have no 

metals waiting for long time in the yard. We buy, buy, buy,” he asserts. 

That does not mean they do so blindly. There are records of 

the quality of mining in Mexican territory dating back to when 

the ancient Mexica, Maya and Toltec cultures were settled in 

the country. “Mexico has mining in its blood and, these days, 

having a metallurgical expert on your ranks means producing 

better zinc for the world,” concludes Ojeda. n 

www.koreazinc.co.kr 

Today the favorable 

conditions for Korea 

Zinc’s growth in 

Mexico remain. “If 

we are buying half 

of all the zinc that is 

extracted, that means 

that the other half is 

still available,” Ojeda 

Díaz indicates.


MexicheM: 

the true meaning 

of added value 

hoW does a RaW maTeRials supplieR 

evolve inTo a Company ThaT inTeGRaTes 

all aspeCTs of The pRoCess and BeComes a 

leadeR in The final pRoduCT? mexiChem has 

The ansWeR. 

____ 


photos courtesy of mexichem 

Having a raw material, even in 

large quantities, is not always 

enough. The commodity needs 

to be transformed in order to 

make a profit. For Mexichem, the petrochemical 

industry is the key and it is taking 

full advantage of it. 

The Mexican company, considered the 

largest in its field nationwide and a leader in 

Latin America, owes its influence to an integration 

strategy that has radically changed 

its profile over the last 10 years: from being a 

supplier of basic commodities for chemical 

processes –primarily salt and fluorite– to a 

developer and retailer of end products. This 

development also led Mexichem to make a 

full entry into the global market. 

Prior to that, four decades of work had 

created sufficiently solid foundations for 

Mexichem to begin, very early this century, 

to acquire the companies that make 

up its three chains of production: Chlorine-Vinyl, 

which includes salt products, 

from chlorine and caustic soda to plasticizers 

and PVC resin; Fluorine, which 

comprises the production of metallurgical 

grade fluorite, used for the manufacture 

of a range of construction materials and 

hydrofluoric acid, for refrigerant; and Integral 

Solutions a line of business related 

to the production and marketing of PVC 

pipes, fittings and accessories. 

Mexichem was already a leading producer 

of fluorite –for it houses the largest mine 

of that mineral worldwide (located in San 

Luis Potosí)– but had to go further. The first 

step was the acquisition of INEOS Fluor, 

which produced hydrofluoric acid and the 

refrigerants derived from it. Likewise, having 

produced salt –from which it is possible 

to develop chlorine, caustic soda and part of 

the chain of polymers– Mexichem wagered 

on purchasing the largest producer of PVC 

components, which manufactures a vast 

range of pieces for handling fluids. 

“When you start to integrate you don’t 

lose the value of your original commodity 

but rather add value and generate profit 

both from the raw materials and from the 

intermediate parts of the chain,” explains 

Antonio Carrillo, CEO of Mexichem. 

The company has also shifted from being 

a firm focused on the domestic market 

and on exporting pure commodities such as 

fluorite –with sufficient reserves at the San 

Luis Potosí mine to continue operating for 

another 40 years– to become a conglomerate 

with a presence in 40 countries that 

earns at least 50% of its revenues from its 

final products: chlorine, sodium hypochlorite, 

sodium hydroxide, hydrochloric acid, 

potassium chlorate, vinyl resins, plasticizers, 

refrigerants based on hydrofluoric 

acid, PVC resin piping and fittings and geosynthetic 

materials for construction. 

a peTrochemical leaDer 

Mexichem operations are spread across 

the globe based on a strategy that links up 

local sales and production. The company 

has plants for fluoride processes in the 

US, Mexico, Taiwan, Japan and England; 

for processes related to the chlorine-vinyl 

chain it has presence in Mexico, Colombia, 

the US and England. 

In parallel, the firm maintains an export 

program for fluorite and vinyl resins 

with destinations in the US, Europe, 

the Middle East and Asia. Moreover, the 

PVC resin manufactured in Mexico and 

Colombia is exported to Europe, India, 

to its own pipe-making plants located in 

the rest of South America and, to a lesser 

extent, the US. 

As a company that vertically integrates 

processes by acquiring the companies 

it needs to connect all its production 

chains, Mexichem supplies itself with 

many of the raw materials it needs. Carrillo 

reveals, however, that the firm has 

signed global contracts for the purchase 

of calcium and stabilizers, as well as to 

cover its vinyl chloride (VCM) requirements, 

which are provided by the companies 

Occidental Petroleum Corporation 

(Oxy) and Pemex. It is worth noting that 

Mexichem has recently established association 

agreements with both. 

In January 2013, it ratified the partnership 

between the company and Pemex 

to commit 200 million usd for the production 

of VCM, while the agreement 

between Mexichem and Oxya ims to gain 

ground in the face of the possibility that 

the US will become a major competitor 

in the field of petrochemicals, with the 

discovery and exploration of shale gas 

and the boost provided by the start of 

horizontal drilling in clay formations in 

the country. 

“The challenge is in taking advantage of 

these changes,” says Carrillo, since the US 

could exploit shale gas for ethane and, therefore, 

the ethylene chain that is required for 

PVC, polyethylene and polypropylene. 

Another way to get ahead of the competition 

is to innovate and the Mexican 

PVC and fluorite giant does so through 

research carried out in its technology 

development center, which is located in 

Europe and focuses on improving the 

firm’s key products: pipes and fittings for 

water circulation. 

Mexichem also offers lectures on 

technological developments in universities 

in Mexico, Colombia, the US and 

Europe. “Basically, we look for new applications 

for our chemical products and 

find ways to make these products more 

environmentally-friendly.” 

global human capiTal 

Given the company’s expansion across 

the world, the nationalities that comprise 

its human capital are many. Carrillo indicates 

that of Mexichem’s 17,000 employees, 

about 2,500 are Mexicans working in 

plants within the country and abroad. 

Professional exchanges between Mexico-based 

staff and other Mexichem facilities 

across the world allow the firm, in the 

words of its CEO, “To unify criteria, policies 

and procedures, and to learn from the other 

countries where we work. In a company that 

has grown so fast and with so many acquisitions, 

the culture is evolving and Mexican 

human capital plays a major role in that.” 

Development is set to continue with 

forecasts pointing to further growth, which 

Mexichem foresees as orderly and even 

conservative, with 20% growth in sales, 

20% in earnings before interest, taxes, depreciation 

and amortization (EBITDA) 

and 20% in returns by 2015. n 

www.mexichem.com.mx


yaMana: 

delIverIng value 

through relIabIlIty 

Yamana Gold is a Canadian-based gold producer with 

a primary focus in the Americas. Its Mercedes mine in 

Mexico’s northern state of Sonora –250 km from Hermosillo– 

is its only operation in the country and a significant part of 

a portfolio of operating assets that contribute to Yamana’s 

expansion as a leading mid-tier gold producer. 

____ 

photos courtesy of yamana 

As a growth-oriented company targeting sustainable production 

of approximately 1.75 million gold equivalent 

ounces (GEO) while maintaining low costs and following 

a portfolio approach to asset management, yamana 

looks for projects that allow it to utilize in-house expertise to effectively 

and efficiently develop and operate gold mines. 

In Mexico, particularly in Sonora, yamana found the ideal conditions 

to establish: stable jurisdictions with a well-known mining infrastructure 

and history, clear permitting processes, and stakeholders 

convinced of the benefits and positive impact generated by mining. 

“The development, construction and ramp up of Mercedes were 

ideal,” says Gerardo Fernández, yamana Gold Vice President and 

Country Manager for Chile and Mexico. “Jurisdiction played a 

key role in the launching of the project, as we have access to good 

infrastructure and resources. Also, the permitting processes from 

development to construction to production were stable, predictable 

and navigated within a very reasonable and expected timeframe.” 

These stable conditions allowed the company to progress seamlessly 

from defining drilling in 2007 to deciding on a construction 

date in 2010 to beginning commercial production in early 2012. 

The underground mine where gold is produced by agitated 

leaching with counter current decantation and Merrill- 

Crowe processing under the highest international standards was 

brought to production ahead of schedule and on budget. 

In 2012, its first year of production, the mine churned out approximately 

125,000 GEO, and expectations are that in 2013 the 

mine will reach at least 130,000 GEO. This is a modest 10% of 

yamana’s current production but it puts the mine in line with the 

company’s strategic niche of reliable and predictable low-cost 

mines producing between 100,000 and 200,000 GEO. Mercedes 

fits well within this category and has created tremendous value 

for yamana and its shareholders. 

Employing local labor is also a priority for the company. 

yamana has filled most of its 500 direct employment positions 

through the local workforce, which with the auxiliary employment 

created provides the community with the opportunity 

to share in the benefits associated with the successes of the 

Mercedes mine. 

Sourcing local labor isn’t the company’s only commitment to 

the community. yamana has on site managers in each area of expertise 

that ensure both the protection of employees and the environment 

and the surrounding communities. yamana releases 

an annual Corporate Social Responsibility report that explains 

and quantifies the success of these programs and initiatives. 

Mercedes has had a first full year of productive success with an 

expected 10 year mine lifespan. Aggressive exploration at the site 

continues with the goal to grow mineral resources and enhance 

Mercedes’ value and lifetime. yamana views this kind of organic 

growth as an effective way to deliver significant value. The company 

has already expanded Mercedes’ output by approximately 20% with 

very little capital based on the anticipated growth in mineral resources 

expected through successful exploration. 

“We have identified five mineral veins at Mercedes and exploration 

continues with the goal to increase mineral reserves and 

resources,” states Fernández. “A good example of the potential upside 

at the operation is the Lagunas Norte vein, a higher grade vein, 

which wasn’t included in the original mine plan and represents a 

significant opportunity to upgrade mineral resources and potentially 

increase production.” 

yamana has targeted increasing company-wide sustainable 

production to approximately 1.75 million GEO beginning in 

2014 -approximately 46% above 2012 levels. This growth will 

come from the addition of new operations in other countries and 

planned expansions of existing operations. 

The company has three assets at various stages of development 

and ramp up expected to begin commercial production in 2013, 

which will contribute to achieving the sustainable production 

target. The strategies employed in the development of Mercedes 

are being applied to those new projects with the expectation of a 

similar outcome. The same strategy will be used in the development 

of earlier stage projects in yamana’s pipeline, with the most 

notable being Cerro Moro, in Argentina. 

yamana will continue to focus on delivering value through reliability 

of operational and financial results and organic growth. Mexico 

and the Mercedes mine are an important part in that delivery and 

have provided a successful entry into a prospective jurisdiction that 

could contribute to further growth for yamana in years to come. n 

www.yamana.com 

In Mexico, particularly 

in Sonora, Yamana found 

the ideal conditions to 

establish: stable jurisdictions 

with a well-known mining 

infrastructure and history, 

clear permitting processes, 

and stakeholders convinced 

of the benefits and positive 

impact generated by mining.


Mexico: 

The golden Path 

to opportunity 

Canadian mining Company, agniCo- 

EaglE, has bEComE a major playEr in 

mExiCan mining in rECEnt yEars, with 

plans to ContinuE invEsting in thE 

Country whErE it has found largE 

dEposits, a ClimatE of ConfidEnCE 

and vital govErnmEnt CoopEration. 

____ 

by graeme stewart 

photos courtesy of agnico-eagle 

Agnico-Eagle, the Canadian mining 

company, has struck gold in 

Mexico and is so pleased with its 

Mexican employees and government 

cooperation for its operations that it 

has vowed to continue mining precious metals 

in the country for many years to come. 

It is the latest chapter in the long-running 

and historical gold and silver mining 

industry that is now being renewed and 

modernized thanks to an inflow of foreign 

investment. 

In the sierras of Chihuahua in the north 

of Mexico, some 40 mining companies from 

Mexico, Canada, the US and China are conducting 

explorations in the land that is also 

rich in silver, copper, zinc, marble, barite, 

gypsum, pumicite, silica and sands - raw 

materials needed for many of the world’s 

manufacturing processes, from technological 

to construction industries. 

Agnico-Eagle is one of the foreign companies 

that have recognized the potential 

of the region. The Toronto-based firm is 

among the top 40 gold and silver producers 

in the world, according to the report “Mine 

2011, The Game Has Changed. Review of the 

Global Trends in the Mining Industry” published 

by PricewaterhouseCoopers (PwC). 

It runs one of the most productive 

mines at Pinos Altos, Chihuahua, and a satellite 

mine, Creston Mascota, which, since 

the beginning of operations in 2009, has 

produced a combined volume of 200,000 

ounces per year. 

The company also has mines in Quebec 

and Nunavut in Canada, as well as in 

Finland. In 2005, the company began negotiations 

to acquire the mine of Pinos Altos, 

which since 1998 was the property of the 

Mexican industrial group Peñoles. 

Agnico-Eagle moved forward from the 

exploration to the production stage with 

considerable success, due to the high technical 

skills of the professionals involved in 

the project and to the quality of local talent. 

Following the strong results obtained, 

the company is willing to keep investing in 

Mexico. According to Tim Haldane, Senior 

Vice President for Latin America, the company 

has invested 500 million usd to date in 

its Mexican mines and its investments will 

continue to grow in the future, leading to 

prosperity not only for company investors 

but also for the communities found in the 

vicinity of the mines. 

“The Mexico operations constitute a very 

important subsidiary within the group as a 

business unit. Its current growth in Mexico is 

very strong and has led to the search for new 

prospects across the country,” Haldane says. 

“The outlook for 2013 is extremely positive 

and we think things will continue with a nice, 


strong performance. In fact, we think Mexico 

is one of the best future business prospects 

and we will be looking for further opportunities 

in the country,” he continues. 

The opportunities are mutual because 

Agnico-Eagle’s work in Chihuahua has created 

jobs for the small villages that comprise 

the municipality of Ocampo and for engineers 

in mining, chemistry, geology, mechanics, 

electrics, information technology 

systems and administrators graduated from 

universities mainly in Sonora, Chihuahua, 

Zacatecas, Durango, Coahuila and Sinaloa. 

Haldane affirms: “We have a total of 

1,350 employees in Mexico and 72% of 

them are hired and trained from the local 

area surrounding our mines, with the re-


maining employees who have joined the 

project coming from other areas in Mexico. 

Along with the skills and experience 

brought by our Mexican employees, we 

have also had great cooperation from the 

Mexican and Chihuahua governments. 

We couldn’t have asked for more from 

them. I have found Mexico to be a stable, 

pragmatic and transparent 

place to do business. We are a 

satisfied customer.” 

Mexico is one of the leading 

developing economies to have 

been a magnet for global mining. 

A Mexican government report 

lists 750 open-pit mining projects 

currently operating with 

foreign capital in the exploration, 

development and production phase 

–with very few suspended. Canadian firms 

are clearly major participants. 

Haldane points out that during the past 

15 years, foreign and national investment 

in the Mexican mining industry has result- 

ed in a highly technical sector which uses 

state-of-the-art technology and equipment 

for mineral extraction and processing, with 

high security standards and, above all, controls 

for cleaner production processes. 

He adds: after the forest and military 

sectors in Mexico, mining industry is the 

largest tree planter .We have a nursery that 

“Mexico is one of the best future 

business prospects and we will be 

looking for further opportunities in 

the country,” Haldane says. 

is capable of growing 160,000 trees a year. 

Water treatment and recycling are also high 

on our list of environmental priorities.” 

Agnico-Eagle’s environmental protection 

efforts in Mexico have not gone unnoticed 

and recently the company was award- 

ed an Industria Limpia (Clean Industry) 

certificate in recognition of its work in 

helping to preserve the environment. 

The firm plans to continue operations 

in Pinos Altos until 2026 and in Creston 

Mascota until 2018. The company is 

also seeking to expand to other deposits 

in Mexico thanks to the confidence and 

certainty it has found for its in- 

vestments in the country. 

“Agnico-Eagle’s plans for 

Mexico are the best signal of 

confidence the company has 

in the country. I can’t overstate 

how happy we are with our 

Mexican operations, especially 

with our Mexican employees 

and the government cooperation 

that we receive. We are ready to keep 

on working in order to preserve that confidence 

and continue growing in Mexico,” 

Haldane concludes. n 

www.agnico-eagle.com 

photo courtesy of las alamandas 

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Mundial, a New Platform 

for Latin American Film 

Canana, a Mexican production company founded by Diego Luna, 

Gael García Bernal and Pablo Cruz, has merged with America’s IM 

Global to create Mundial, a new label for the worldwide distribution 

of Latin American films. 

Mundial will be headquartered in Mexico City and will be officially 

launched on the European film market in Berlin, in February 2013. 

The new company plans to distribute between eight and 10 films a 

year, including Canana productions, with a view to establishing itself 

as a platform for the promotion of Latin American-made films. 

In the meantime, Mundial will kick off with the distribution of 

three Canana productions: Paraíso, by the Mexican director Mariana 

Chenillo, Manto Acuífero, directed by Michael Rowe, who won the 

Caméra d’Or at Cannes in 2010 for Leap Year, and Mr. Pig, the fourth 

feature film –and the second English-language one– by Diego Luna, 

scheduled to be shot this year. 

www.canana.tv 

www.imglobalfilm.com 

DESIGN 

Design for the 

Common Good 

Founded in 2011 by the state government 

of Oaxaca, the Oaxaca Design Center 

(CDO) seeks to promote not just the aesthetics 

of a design culture, but also raise 

awareness of its enormous potential to 

contribute to the common good, social 

peace and sustainability. 

The former convent of Santo Domingo 

in the city of Oaxaca, a building listed as 

a World Heritage Site, will be converted 

to house the CDO. The first phase of the 

project, which consisted of solving storage, 

lighting, data and voice network and 

other interior design issues, has already 

been completed. 

Entrusted to industrial designer Emiliano 

Godoy and the design firm Tuux, 

Godoy’s approach was to establish a 

dialogue with the building’s existing 

architecture by respecting certain distinguishing 

features, such as its barrel 

vaults and the thick stone walls that support 

its arches. 

www.cdo.gob.mx 

photo courtesy of canana 

ARCHITECTURE 

& DESIGN 

Pure & Simple 

As Water 

Casa del Agua is a new artisan bar concept 

in Mexico City’s Roma District, where 

people can go for a drink of rainwater. The 

water is served in specially-designed and 

reusable glass bottles, and it’s harvested 

and filtered on-site. It meets the highest 

purification standards, going through a 

process of triple filtration, evaporation and 

condensation that makes it pure and perfect 

to drink. Then it is rematerialized and 

ionized, increasing its alkaline and antioxidant 

properties. 

Casa del Agua is not just another brand. 

It is a complete philosophy that combines 

purity and timelessness. Inspired by a traditional 

process, it has emerged as a nostalgic 

brand that evokes and appeals to that 

which is well made, practical and beautiful. 

In Casa del Agua, man, machine and nature 

come together in a common language, unafraid 

of clarity and purpose. It is an encounter 

that merges the simplicity of water with 

modern purification processes that have 

both health and environmental benefits. 

The concept surrounding Casa del Agua 

is a simplistic, pure and clean-cut creation 

designed by THiNC. Héctor Esrawe and 

Ignacio Cadena from THiNC followed the 

brand’s principles: transparency, good 

quality and timeless design. Inside there 

is clarity and a pure nature, with nothing 

but the presence of the water bottle 

to speak for itself. Through the overall 

white surroundings, the black contemporary 

lights and the wooden planks you 

immediately get a sense of nostalgia, present 

in the mod. The eye-catching water 

bespoke piece in the center of the round 

bar is the perfect blend between the contemporary 

concept and the passion of the 

classic. The space displays character and 

importance even through its simplistic 

form, understanding the creativity behind 

the water. 

Outside, in the rear garden designed 

by Alejandro Tazzer is a teaser of a contemporary 

Eden. A great structural 

wooden altar type canopy amongst the 

ultimate symmetrical gardens on either 

side of the paths. 

www.casadelagua.com.mx 

photos courtesy of casa del agua

52 Negocios ProMéxico | The Lifestyle Negocios ProMéxico | The Lifestyle 53 

48 hourS In 

Guadalajara 

guadalajara is to be found in its markets, its mariachis and its fountains. 

the city wakes each morning, content to see the sun reflected off 

its colonial buildings and countless squares. It doesn’t take much to 

captivate the unsuspecting visitor, be it the magnificent orozco mural 

Man in flames at the cabañas cultural Institute, the region’s colorful arts 

and crafts or its spicy cuisine. 

9:00 a.m. 

Guadalajara certainly isn’t short on hotels but it’s always best to 

choose a centrally located one so you can explore all the sights 

by foot. Hotel Del Carmen, right in front of the former Del Carmen 

convent, will enhance your vacation experience. This 19th 

century mansion has been transformed into a concept hotel 

with nine guestrooms named after famous Mexican artists like 

Rufino Tamayo, Günther Gerzo and Remedios Varo. Get off to a 

great start with breakfast in De los Refranes, a tranquil patio in 

the hotel grounds named after the fascinating world of Mexican 

proverbs. 

Hotel Del Carmen 

Jacobo Galvez 45 

Historic Center 

T. +52 (33) 3614 2640 

www.delcarmen.mx 

____ 

by jimena sánchez-gámez 


Saturday 

10:00 a.m. 

The first point of call is the Metropolitan Cathedral and the four 

squares that surround it, which together form a Latin cross. East of 

the cathedral is Plaza Guadalajara, a square with a refreshing fountain. 

This is where the tourist trams depart from. Southward is Plaza 

de Armas, identifiable by its wrought iron bandstand and sculptures 

of four Greco-Latin women. Northbound is the Rotonda de los Jaliscienses 

Ilustres, dedicated to the heroes of Jalisco, and to the west is 

Plaza de la Liberación. 

2:00 P.m. 

Nearby, on the 

corner of Javier 

Mina and Calzada 

Independencia, is the 

Mercado San Juan 

de Dios, a gigantic, 

three-story market 

that immediately 

assaults the nose. you 

can find just about 

anything here, from 

sombreros, bags, 

ponchos and huaraches to ceramics and 

food, concentrated mainly on the second 

level. Birriera Palenque specializes in two 

dishes that are long-standing favorites 

among the locals: birria, a broth of seared 

chili peppers and tender meat –usually 

beef, lamb or goat– and tortas ahogadas, a 

sandwich made with a kind of tart, savory 

bread roll known as a birote, filled with 

barbequed pork and doused in a hot árbol 

chili sauce. It takes a mighty stomach to 

tackle both but whichever you choose will 

make you feel like your mouth is literally 

on fire. 

4:00 P.m. 

Since you’re already in the downtown 

area, it’s worth taking a couple of hours 

to explore Guadalajara’s museums. The 

Museum of Journalism and the Graphic 

Arts (Av. Alcalde 225) is housed in an old 

building known as Casa de los Perros. 

This is where the first rebel newspaper, 

El Despertador Americano, was printed at 

the initiative of Miguel Hidalgo y Costilla. 

Fossil lovers won’t want to miss the 

Paleontology Museum (Dr. R. Michel 250) 

and a visit to Casa Taller José Clemente 

Orozco (Aurelio Aceves 27) is mandatory. 

Here you can see lithographs, photos and 

sketches exhibited in what was once the 

artist’s atelier. 

photo paulo jiménez 

11:00 a.m. 

The walk from Plaza de la Liberación to 

the Cabañas Cultural Institute is a must. 

Here, during October, you can witness the 

art of sculpting quarry stone at first hand. 

On your way, you’ll also see the famous 

Degollado theater, whose Neo-Classical 

facade boasts a sculpture of Apollo and the 

nine muses. The theater coffee shop is the 

perfect place to take a break before continuing 

on to Plaza Tapatía, where you’re 

bound to see some child or other playing 

in the dancing fountains. The walk ends at 

the Cabañas Cultural Institute. Built in the 

19th century by Manuel Tolsá as a shelter 

for orphans and the destitute, today it is 

a museum that houses 53 murals by the 

great José Clemente Orozco, an artist who 

portrayed life in Pre-Columbian Mexico 

and the cultural shock that the arrival of 

the Spaniards caused. No one leaves the old 

chapel without gasping in awe at its dome 

decorated with the mural Man in Flames, 

indubitably one of the masterpieces of the 

Mexican muralist movement. 

6:30 P.m. 

Two blocks south of the cathedral is Avenida Juárez, a picturesque avenue that begs to 

be explored on foot. On the corner of Donato Guerra is a bronze sculpture of the engineer 

Jorge Matute Remus pushing a wall. In 1950, Matute managed to move the 1700-ton 

building of Teléfonos de México 12 meters without damaging it, allowing the telecommunications 

company to continue operating without interruption. A stone’s throw away 

is the Templo Expiatorio del Santísimo Sacramento, a church that appropriates European 

gothic-style architecture of the Middle Ages. Designed by Adamo Boari –the same architect 

who designed the Palace of Fine Arts in Mexico City– the church was completed by the 

Jalisco-born Ignacio Díaz Morales and is well worth a visit. If you walk back along Avenida 

Juárez, you’ll eventually come to Avenida Chapultepec, an avenue buzzing with cafés and 

restaurants where you can watch the sun set on Guadalajara.


8:00 P.m. 

For dinner, we suggest you book a table at either of Hotel Demetria’s two restaurants –the 

Demetria or the Balthus. Another excellent option if you’re looking for a place to spend the 

night, the Demetria has 38 rooms, a gallery, a bookstore specializing in art, a folk art store 

and a boutique by the design duo Julia and Renata. Whichever one you choose, you’ll be 

treated to the cuisine of Antonio de Livier, a Mexican chef who fuses local and regional 

ingredients to create magical dishes like scallop tostadas and leg of pork in vinegar with 

green salsa and Tapalpa cream. 

Hotel Demetria 

Avenida de La Paz 2219 

LaFayette 

T. +52 (33) 3818 0060 

www.hoteldemetria.com 

Sunday 

9:30 a.m. 

Morning is the best time 

to visit the downtown area 

of Zapopan, a municipality 

that forms part of the 

Guadalajara Metropolitan 

Area. Teopitzintli, a pedestrian 

zone that ends 

at Plaza de las Américas 

Juan Pablo II, in front of 

the Basilica of Zapopan, 

is teeming with restaurants. 

After breakfast at 

a sidewalk café, it’s off to 

the Zapopan Museum of 

Art, which specializes in 

modern art and the works 

of regional artists. Next to 

the basilica is the somewhat 

inconspicuous Museum 

of Huichol Art. Despite 

its small dimensions, 

it’s still highly informative 

if you happen to be interested 

in this particular 

indigenous culture. 

12:00 P.m. 

you can’t leave Zapopan 

without visiting the popular 

galleries, bars and restaurants 

of Andador 20 de 

Noviembre. On Saturdays, an 

art and antiques fair sets up 

its stalls here but if you come 

on a Sunday, you can buy 

traditional cornstalk art and 

quarry stone sculptures at 

the Zapopan Arts and Crafts 

Center. 

10:00 P.m. 

Cantinas are a tradition that time 

hasn’t eroded in Guadalajara, so no 

matter how tired you are, you’re going 

to have to drag yourself out for a drink. 

La Maestranza (Maestranza 179), 

established in 1940, has adopted the 

art of bullfighting as its theme, while 

La Fuente (Pino Suárez 78) has an 

emblematic bicycle hanging over the 

bar that a patron left behind half a 

century ago. La Fuente has been in 

business for 90 years and receives 

a larger crowd during the day. But 

if action is what you’re after, we 

recommend La Mutualista (Madero 

553), where the city’s taxi drivers used 

to gather to dance salsa. 

2:30 P.m. 

Slightly further removed from downtown Guadalajara, Tlaquepaque eagerly 

awaits the visitor with mariachis and chabelas (beer served in a special 

glass). If you’re game to sample some more of Jalisco’s culinary specialties, 

any of the restaurants in El Parián (a hacienda-like structure) will be sure 

to sate your curiosity. A hearty bowl of pozole will set you up for the walk 

to Plaza del Artesano and from here to Andador Independencia. Sergio 

Bustamante, a Mexican jeweler and sculptor who has created a world of his 

own populated with moon-faced characters, has a gallery here. Next door is 

the Regional Ceramics Museum, which pays tribute to the skilled hands of 

Jalisco’s potters. 

Galería Sergio Bustamante 

Independencia 238 

Centro, Tlaquepaque 

T. +52 (33) 3639 5519 

www.sergiobustamante.com.mx 

3:00 P.m. 

Before returning to downtown 

Guadalajara, we suggest you 

make a pit-stop in Tonalá, a municipality 

that takes pride in its 

handicrafts. Every Thursday and 

Sunday, traders come from as far 

afield as the Valley of Atemajac 

to set up their street stalls along 

Juárez, Madero, Cruz Blanca 

and Santos Degollado and the 

larger avenues Tonaltecas and 

Tonalá. Ceramic, blown glass, 

paper mache, clay and wood, 

from toys to masks, mountains of 

handicrafts of every conceivable 

material, form and color create a 

veritable feast for the eyes. 

8:00 P.m. 

Perhaps the most fitting way to say goodbye 

to Guadalajara is with dinner at Anita Li. 

Located in a semi-industrial district, the occasional 

train chugs past the entrance of this 

eclectic restaurant, whose décor can best be 

described as somewhere between kitsch and 

vintage. Seafood takes pride of place on the 

menu but blends of Thai and Mexican spices 

give the palate something new to chew on, 

while a long list of Mexican wines plays up 

dishes like ox tongue with tangy mango curry. 

Anita Li 

Inglaterra 3100 

Vallarta Poniente 

T. +52 (33) 3647 4757 

www.anita-li.com


beatrIz 

MoraleS 

the infinite 

Possibilities of Creativity 

____ 

by paola valencia 

photos courtesy of beatriz morales 

“i Was 19 When i Gave my fiRsT 

solo exhiBiTion and sold my 

veRy fiRsT painTinG. When 

i found ouT iT had Been 

sold, i lefT The exhiBiTion 

in TeaRs BeCause i Realized 

i’d neveR see iT aGain. iT Was 

heaRTBReakinG.” 

Art came into Beatriz Morales’ life so naturally that she 

can’t imagine herself doing anything else. An artist with an 

interdisciplinary education, Beatriz is constantly pushing the 

creative envelope. In an exclusive interview with Negocios, she 

reveals what it’s like to be a Mexican living in Berlin, her plans for 

the future and how she has managed to make a living out of art. 

—When did you realize you wanted to make a career out 

of art? 

I’ve always believed there are things you don’t decide. They just 

are. They happen spontaneously. And that’s how it was with me 

and painting. I’ve always liked art. I used to dance flamenco and 

play the piano, but nothing made me happier than painting. 

I did my first canvas painting when I was 13. There are 

no artists in my family but my grandmother used to paint oil 

landscapes as a hobby. One day she got tired of painting and 

gave me all her materials. I had a hard time finishing high 

school because I’d stay up all night painting the ceiling and 

walls of my bedroom. 

I studied at Mexico City’s Colegio Alemán but when the time 

came to decide on a career, I was afraid to admit that all I was 

interested in was painting because most of the people close to 

me regarded art as a very bohemian lifestyle choice. 

So I opted for the next best thing and went to Italy with the 

idea of studying interior architecture in Milan but to enroll I 

needed to learn Italian. So I traveled to Florence to take a course 

in Italian and my first painting classes. Three months later, I 

called my mother to tell her I’d enrolled at the Academy of Fine 

Arts in Florence. And that’s how it all began. 

—You also studied fashion design. How did you make the 

connection between fashion and art? 

In my case, the connection came about like this: when I got back 

from Florence, I took a series of courses with maestros like Manuel 

Guillén, Savinder Sawarkar and Enrique Miralda, all of whom 

taught me a great deal. Enrique Miralda gave a sculpture class at 

Casa Lamm in Mexico City, which is where I met some art history 

students who took an interest in my paintings and suggested I stage 

an exhibition there. I was 19 when I gave my first solo exhibition 

and sold my very first painting. When I found out it had been sold, I 

left the exhibition in tears because I realized I’d never see it again. 

It was heartbreaking. Those first paintings were very personal and 

loaded with emotion and I felt naked and vulnerable. 

“BeRlin has 

foRCed me To 

maTuRe and 

ChanGe; iT’s 

Given me a 

muCh BRoadeR 

peRspeCTive of 

Who i am and of 

my WoRk.”


I tried to replicate the paintings I’d sold because I felt I needed 

them, but it was pointless; they weren’t the same. It was unsettling 

to think a part of me was leaving with a stranger and it unnerved 

me to think it would always be like that, so I asked myself: “What 

field would I like to work in where I can continue being creative and 

make replicas of my work without having to let go of anything?” 

That’s how I came to study at IES Moda Casa de Francia. 

—Although eventually you went back to painting, what did you 

learn from making clothes? 

I had great fun experimenting with fashion. I won awards and 

appeared in publications. I also made some good friends, like the 

designers at Trista. For two whole years I stopped painting but my 

illustrations improved enormously. I was serious about fashion but I 

needed to paint, so I went back to fight for it. 

—Why did you choose Berlin as your artistic lair? 

The first time I visited Berlin was in 2007 and I felt at home 

from day one. I was amazed at the number of international 

artists who had made the city their home but, more 

importantly, I made good friends from the start: musicians 

–like the jazz artist Kurt Rosenwinkel, who asked me to 

do the artwork for his most recent album, Star of Jupiter– 

photographers, filmmakers, conceptual artists and the like. 

What struck me most was the city’s famous motto “Poor but 

sexy”. It wasn’t expensive to rent an apartment or a studio and 

the exhibition venues were one-of-a-kind –derelict factories 

converted into galleries– and more openings, happenings and 

performances than I’d ever seen in one place. The thought of 

being part of yet another renaissance of a city with so much 

history was what prompted me to move there and, so far, I 

haven’t been disappointed. 

—What has Berlin taught you? 

Berlin has forced me to mature and change; it’s given me a 

much broader perspective of who I am and of my work. My 

approach to my work has evolved over these last five years. The 

city is a huge source of inspiration for me for many reasons, not 

just the obvious things, like the differences in language, food 

and weather when you’re far from your own country. 

There have been many changes. I now work with ink and 

water engraving, collage and illustrations for magazines on a 

regular basis. 

—Why the fascination with human faces in your work? Is it 

intentional or coincidental? 

I began doing loads of self-portraits and I realized how tell-tale 

the face is. It’s a very clear, very direct plastic language. The 

smallest variance in the curvature, depth or length of a line 

can give out a completely different message. I love to observe 

people and when I meet someone new, I subconsciously 

measure their proportions with imaginary lines. One of the 

first conclusions I came to from my observations was that 

features have nothing to do with beauty; it’s expressions that 

are the key, what really define a person. 

—If you hadn’t chosen art as a way of life, what would you be 

doing now? 

I can’t imagine myself doing anything unrelated to the so-called 

“art world”. If I didn’t have a career in the plastic arts, I’d probably 

be doing something in a world that offers the same infinite 

possibilities, full of color, texture and culture. Maybe that world 

could be in the kitchen? 

—You’ve started designing jewelry. Tell us about this new 

phase in your career. 

In 2012, Silvio Dulinsky, co-founder of Artency, came up to me 

at Berlin’s contemporary art fair, the Berliner Liste, and asked 

if I wanted to join his project. 

Artency is a Madrid-based initiative in which jewelers, 

plastic artists, architects, visual artists, designers and sculptors 

pool their knowledge to create quality jewelry that they turn 

into wearable art. I immediately accepted the invitation. The 

challenge appealed to me and I was in my element being able to 

combine my knowledge of design, sculpture and painting. So far, 

I’ve designed eight pieces inspired by brush strokes. The first 

molds have already been made and the pieces will be available for 

purchase online in February 2013. 

—Does that mean Beatriz Morales is headed in a new 

direction or is it simply another chapter that will begin and 

end before you go back to painting? 

I certainly see myself designing more. Design is a field I loved and 

where I learned a lot, not only about team work but about the origin 

of the materials, which is something I find fascinating. Painting is my 

first love but creating is creating and I’m open to every possibility. 

—What is it you miss most about Mexico, especially in 

relation to your work? 

I’m Mexican to the core and I miss my country all the time. I miss 

my studio, which is near Tepeji del Río, in Querétaro. I miss being 

close to nature when I’m working, in the middle of the mountains 

where there’s no cellphone reception and all you can hear are 

organic sounds and the occasional bang of fireworks from some 

nearby village. Most of all, I miss the people and their warmth, my 

family and friends who make me laugh so much. Sometimes I feel 

disconnected but when I come back, it’s as if I’d never left. Right 

now I’m living abroad but it won’t be forever. 

—What are the challenges you face as a painter? 

I face numerous challenges which change depending on the 

circumstances. The main one is how I relate to my work. 

Sometimes I get angry or don’t live up to my own expectations, 

which is why I have learned to make peace with myself so I can 

start over and keep going. 

—And as a Mexican living abroad? 

I’m proud to be Mexican, which is maybe why I feel comfortable 

living abroad. Sure, the references to Frida [Kahlo] can get 

tiresome or if I wear something bright pink, people will try to 

justify it by saying I’m Mexican. 

—If you could choose a gallery to exhibit your work, which 

one would it be? 

Every year when I come back to Mexico, it’s gratifying to see 

more and more interesting and well-curated galleries and 

engaged artists. I’d like to exhibit more in Mexico. In fact, I have 

two galleries in mind in the Roma district of Mexico City. 

—What’s next for Beatriz Morales? 

I’m helping out with the artwork for a new restaurant that will be 

opening in March 2013 in the Roma district of Mexico City, on the 

corner of Jalapa and Guanajuato. It used to be a hardware store 

and I’ll be helping the architects create a space where the table is 

the central element, using organic and recycled materials from the 

original store and trying to strike a balance between them. n


A Brief History of… 

the 

VeracruZ 

carniVal 

eVery february for the laSt 88 

yearS, the Veracruz carnIVal haS 

taken place DurIng the nIne DayS 

prIor to aSh weDneSDay, MarkIng 

the begInnIng of eaSter wIth a 

fIeSta of MuSIc anD color. 

____ 

by maría josé esteva 

photos courtesy of carnaval de veracruz 

The Veracruz Carnival is a tradition 

that dates back to 1866, 

when Mexico was ruled by 

Maximilian of Habsburg. The 

people of Veracruz asked their emperor 

for permission to hold a masked ball 

but as they made their way through the 

streets, they unwittingly sparked the curiosity 

of bystanders, who gathered on 

the sidewalks to admire their colorful 

outfits. Ever since, history has repeated 

itself year-in, year-out. In time, the parade 

itself came to take precedence over 

the costume party, and in 1925 members 

of Veracruz’s upper class formed an organizing 

committee. It is this date that 

is taken as the official founding of the 

Veracruz Carnival. 

Two decades later, in 1945, the floats 

were illuminated, which meant festivities 

could carry on well into the night. 

Occasionally, parades have been known 

to start at nine o’clock at night and continue 

until dawn. Avenida Independencia, 

in the city’s Historic Center, is the route 

the floats traditionally followed but the 

songs, dancing and general merriment has 

spilled over onto Boulevard Manuel Ávila 

Camacho, to the extent that the carnival 

has garnered international fame. 

There are several customs associated 

specifically with the Veracruz Carnival, 

like the naming of the Carnival Queen 

(who used to “parade” along the beach 

with her entourage, while the rest of the 

carnival-goers flooded the streets) and the 

King of Merrymaking, originally known as 

the Ugly King. On the first day of festivities, 

the ritual calls for a symbolic “burning” 

of Bad Mood, while the highlight of 

the ninth and last day is the “burial” of 

Juan Carnival, along with a reading of his 

last will and testament, which is generally 

packed with political jibes only locals 

could possibly understand. 

An inseparable part of the identity of 

Veracruz, this is the largest carnival in 

Mexico, but no matter what time of year 

you happen to be in this port city, you can 

always enjoy a milk coffee at El Café de 

La Parroquia at Los Portales, a popular 

meeting point among locals and a must 

for visitors. n


Frida 

Escobedo 

An Architect 

Gone Public 

____ 

by naomi palovits 

photos courtesy of frida escobedo 

Mexican architect and urbanist 

Frida Escobedo (Mexico 

City, 1979) tends to focus 

on overlooked and neglected 

spaces, like roofs and basements, which 

she adapts or breathes new life into, adding 

a fresh, albeit transitory layer to the 

landscape. 

In Escobedo’s view, the architectural 

object is in constant flux from its inception 

and, as such, is at once obsolete and a work 

in progress. It is this duality that confers it 

the functions of a mnemonic instrument, 

capable of recording the social and 

historical mood of a certain period. 

Escobedo graduated from the Universidad 

Iberoamericana (UIA) in Mexico City with a 

degree in Architecture and Urbanism and 

holds a Master’s degree in Art, Design and the 

Public Domain from the Harvard Graduate 

School of Design (GSD). 

The recent renovation of La Tallera 

in Cuernavaca, Morelos, Pabellón Eco 

2010, and Hotel Bocachica in Acapulco, 

Guerrero, are some of the notorious 

projects she has been involved in. 

In the case of renovations at La Tallera, 

former home and studio of the Mexican 

artist David Alfaro Siqueiros, Escobedo 

opened up the patio so his murals could be 

viewed by passersby from a nearby public 

square. She was also careful to choose 

materials that reflected an economy of 

means and that blended in with the existing 

space. All covered with a trellis. Thus, 

the architect pulled off what many artists 

before her have attempted to achieve: turn 

a private space into a public one. 

La Tallera has an exhibition hall, two 

storage rooms, two workshops, a bookstore, 

a coffee shop, a reading room and a 

document center, while the house where 

Siqueiros once received artists of the 

stature of Salvador Dalí was converted into 

a residence for visiting artists, curators and 

museographers. 

In an interview with Negocios, 

Frida Escobedo shares her views on 

architecture and the spatial challenges 

modern cities face. 

—As an architect, what motivates you? 

I enjoy analyzing the processes and 

relationships that arise between the user, 

the space and its purpose, the passage of 

time and form. 

—How would you define architecture? 

One of my professors at Harvard, Sanford 

Kwinter, has a phrase that I think neatly 

sums it up: “Architecture is the discipline 

that speaks of the relationships between 

society and form.” That’s how I, also, 

would define it. 

—How was your experience at 

Harvard? 

The central theme of the program I 

took was spatial production in the 

public domain. It’s an interdisciplinary 

program, which meant I got to meet 

people from other disciplines like visual 

arts, design and cultural management. 

Being exposed to such a wide cross-section 

of people forced me to broaden my views 

on the design, use and management of 

public spaces.

64 Negocios ProMéxico | The Lifestyle 

about 

La Tallera 

La Tallera was donated 

to the Mexican people by 

David Alfaro Siqueiros 

(1896-1974), along with 

a large collection of the 

artist’s paintings, graphic 

works, drawings, studies 

for murals and other 

projects, his personal 

archives and library. On 

December 12, 1973, just 

days before his death, 

Siqueiros said he wanted 

his home and studio to be 

preserved as vehicles for 

promoting his work and 

ideas and as centers for 

research and experimentation 

in the “public art” 

of the future. 

—In 2003, you partnered up with 

Alejandro Alarcón to found Perro Rojo 

and since 2006 you’ve been working 

independently at your own firm. How is 

business doing? 

The firm is gradually earning recognition at 

home and abroad, although it is still quite 

small. Most of our projects are independent 

ones, although sometimes I’ll partner up 

with other architects for specific projects. 

For example, José Rojas invited me on board 

the Hotel Bocachica project and I worked 

with Rodolfo Díaz Cervantes on the Educal 

Library for the National Film House. 

—How would you define your 

architectural style? 

It’s hard to define your own work in terms 

of style. It depends on each specific project. 

—Which project have you most enjoyed 

being a part of and why? 

I’m always enamored with the project I’m 

currently working on. 

—What are you working on right now? 

A small boutique hotel in La Saladita, 

Guerrero, and a student housing complex 

in Puebla. 

—What is your dream project? 

I get a great deal of satisfaction from 

projects related to public spaces. 

—What do you think of the 

architectural styles Mexico is 

currently producing? 

I think Mexico’s in a good place. There are 

countless young, proactive firms that are 

less interested in trends and more focused 

on processes. 

—From a functional perspective, what 

would you say contemporary Mexican 

architecture is lacking? 

Enormous progress has been made in this 

area, but I’d say we need to rethink our public 

transport system. Mobility is a problem in 

places like Mexico City. For some people, the 

daily commute to work takes about three to 

four hours. That, in turn, raises the issue of 

housing, especially government subsidized 

housing, which is something else that 

urgently needs to be addressed. 

—What’s the best piece of advice you’ve 

ever been given? 

Someone once told me only to take on 

projects I believed in, not to do things 

for recognition or money but out of 

conviction. n 

Negocios ProMéxico | The Lifestyle 65


mexico according to 

Ana Claudia 

Talancón 

____ 

by naomi palovits 

photo courtesy of ana claudia talancón 

A 

native of Cancún, Quintana 

Roo, Ana Claudia Talancón 

made her big-screen debut 

alongside Diego Luna in The 

Comet with a performance that earned her 

an Ariel for Best Actress. 

Killing Cabos, Ladies’ Night, The Crime 

of Father Amaro and Tear This Heart Out 

are just a few of the Mexican productions 

she has starred in, while her international 

filmography includes Fast Food Nation 

with Ethan Hawke and Bruce Willis, and 

Love in the Time of Cholera with Javier 

Bardem. One of the most sought-after 

actresses in her native Mexico and abroad, 

Talancón is currently preparing for season 

three of the television series she stars in, 

Soy Tu Fan. 

Negocios caught up with her at the 

premiere of El Sueño de Iván, the latest 

production by Spanish director Roberto 

Santiago, in which Talancón shares credits 

with last year’s Oscar nominee for Best 

Actor, Mexican Demián Bichir. 

—What is your favorite place in Mexico to relax? 

Cancún, Quintana Roo, which is the city where I was 

born and raised. 

—Which is your favorite Mexican beach? 

The beaches on the Mayan Riviera are my favorite, 

especially the ones on the Sian Ka’an Reserve near 

Punta Boca Paila in Tulum, also in the state of 

Quintana Roo. 

—What is your favorite Mexican dish? 

There are so many, it’s hard to choose just one. But 

escamoles (ant eggs), chiles en nogada –especially the 

ones my grandmother cooks–, stuffed chili peppers and 

chilaquiles, are at the top of my list. 

—Is there somewhere in Mexico every tourist 

should visit? 

It depends on what they’re looking for, because there’s so 

much to see and do in Mexico. I’d recommend the beaches 

of the Mayan Riviera, Oaxaca and Puerto Vallarta. 

—Which Mexican director do you most admire? 

Alejandro González Iñárritu, Guillermo Arriaga, 

Alfonso Cuarón, Carlos Carrera, Roberto Schneider and 

Gerardo Naranjo. 

—Which Mexican actress do you most admire? 

Elena Rojo, Salma Hayek, Sara García and Isela Vega, 


—Which woman in Mexican history would you like 

to play? 

Sor Juana Inés de la Cruz. 

—Name a Mexican city or state that is on your 

“must visit” list… 

The northern part of Mexico. I have never been to La 

Paz and Los Cabos, in Baja California Sur. I would like 

to go there and do some whale-watching. 

—What do you miss most about Mexico when 

you’re abroad? 

After my friends and family, the food. 

—What do you love most about Mexico? 

Our roots, our nature: we always give the best of 

ourselves. n


What hasn’t been said about 

Mexico’s beaches? They 

rate high among the country’s 

natural attractions 

and are indubitably among the best in the 

world. Now it’s your turn to soak up five 

destinations that live up to a very seductive 

idea of paradise: beautiful sandy beaches, 

tranquil waters in every imaginable shade 

of blue, good music, great food, comfortable 

surroundings and unforgettable sunsets. In 

short, five beaches that have it all. 

cosTalegre jalisCo 

One of the most breathtaking destinations 

in the Mexican Pacific, Costalegre nestles 

between the major tourist destinations of 

Puerto Vallarta, Jalisco, and Manzanillo, 

Colima. Its small sandy bays are separated 

by enormous rocks that create striking 

natural vistas and can be explored aboard 

small boats known as pangas. Quaint fishing 

villages continue to survive, seemingly 

unperturbed by the luxury hotels in the 

area, while small out-of-the-way beaches 

like Barra de Navidad make you feel like 

a pioneer charting virgin territory. If you 

enjoy water sports, this eco-tourism destination 

is right up your waterway! 

From Turquoise 

to Emerald 

five heavenly BeaCh 

desTinaTions in mexiCo 

____ 

by gabriela damián 

photos courtesy of the hotels 

hideaway: 

las alamandas 

Beautiful and untamed, like the wild 

flower it is named after, this colorful 

hotel is one of Costalegre’s best kept 

secrets. The hideaway of choice of 

only the most discerning sybarites 

and the occasional celebrity, its inviting 

swimming pool is literally a hop, 

skip and a jump from the beach, which 

you can explore on horseback without 

coming across a soul. This is an ecofriendly 

destination, which means you 

won’t see any jet-skis causing ripples 

in these transparent waters and the 

fauna that inhabits the resort gardens 

is very well-protected. 

www.alamandas.com 

la paZ 

Baja CalifoRnia 

La Paz preserves the old world charm 

that made it the stuff of new world legend. 

Its picturesque historic center has that 

traditional feel but this is a city that has 

opened its floodgates to international influences, 

especially when it comes to food. 

The choices range from local eateries to 

prestigious restaurants that marry their 

dishes with the delicious signature wines 

the region is famous for. Known for its incredible 

scenery, swimming with the seals 

in the “world’s aquarium” –as Jacques 

Cousteau once referred to the island of 

Espíritu Santo– is an experience that will 

leave an everlasting mark. 

hideaway: 

rancho las cruces 

When Cortés arrived here in 1535, he 

drove three crosses into the ground and 

declared Las Cruces to be its name. Today, 

guests at Rancho Las Cruces can 

see replicas of those crosses as they 

stand under the same sun and look out 

over the same sea Cortés conquered 

478 years ago –something to think 

about as you stroll through the gardens 

and feel the sea breeze on your face. To 

make your stay even more relaxing, the 

guestrooms have chimneys, soft beds 

decorated with embroidered cushions 

and exquisite Talavera designs. 

www.rancholascruces.com


hideaway: 

las palmas 

HUATUlCO oaxaCa 

It’s hard to believe pirates once caused 

mayhem in these warm, emerald green 

waters where tourists now practice water 

sports. Today, Huatulco’s nine bays and 

golden sand beaches are a refuge for the 

marine turtle, which is a protected species. 

This is one of the few tourist destinations 

in the country to boast sustainable 

resource management, and because 

it is part of the state of Oaxaca, it can also 

lay claim to an enviable cultural heritage, 

immediately tangible in the friendly attitude 

of the locals, the creativity of its arts 

and crafts and incomparable food. 

Whether you choose to stay at Las Villas or Las Casitas, this 

resort guarantees a fun, luxury vacation for the whole family. 

Its spacious suites and relaxing pools command spectacular 

views of the sun rising on the sandy beaches of Violín and El 

Faro. The hotel staff will be only too happy to help you program 

fishing or horse riding excursions, or even a guided tour 

to one of the nearby coffee plantations. 

www.laspalmashuatulco.com 

Tulum quinTana Roo 

This ancient walled city –originally called 

Zamá in honor of the rising sun– stands 

strategically atop a cliff looking out over 

the turquoise waters of the Caribbean. 

One of the most striking Mayan World 

sites, there is something for everyone 

here: the archaeological site and its thirteenth 

century temple dedicated to Venus, 

legendary cenotes, underwater caves and 

fascinating marine life that make for a 

diver’s paradise, tranquil beaches to sunbathe 

on, luxury spas to pamper body and 

soul, world class restaurants and a cosmopolitan 

atmosphere. 

hideaway: 

mezzanine 

Nothing is as rejuvenating as a night 

at this modern boutique hotel. Picking 

your way through the menu at their 

Thai restaurant is as interesting as 

exploring the surrounding jungle and 

the Martini Lounge is the perfect place 

to relax after an adventure-packed day. 

For the less intrepid, there are private 

yoga classes, or how about an open air 

massage in full view of the ocean? 

www.mezzaninetulum.com

72 Negocios ProMéxico | The Lifestyle 

Isla MuJeres 

Quintana Roo 

The magic begins as soon as you board the 

ferry at Punta Sam, in Cancún. Dolphins, 

turtles and shoals of brightly colored fish 

accompany your boat for the 45 minutes it 

takes to reach the island. Nature lovers will 

want to visit El Garrafón, a park that offers 

activities like scuba diving, snorkeling, 

kayaking and sea trekking but Isla Mujeres 

also boasts world class restaurants and 

stores. Archaeological evidence suggests 

that Ixchel, the Mayan Moon Goddess, was 

worshiped here, and it’s not hard to understand 

why: as soon as darkness falls, she 

dominates the night sky. 

Hideaway: 

casa de los sueños 

What better place to stay than a hotel that embodies the island’s 

dream-like atmosphere, with tranquil, airy guestrooms 

decorated in chic Mexican-Caribbean style? The common 

areas are perfect for a moonlit party or you can rent a golf 

cart and explore the island. And to wind down, how about an 

oceanside spa treatment? 

www.casasuenos.com

Mexico’s Mining Industry

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