MINING IN MEXICO S - ProMéxico

22 Negocios photo courtesy of industrias peñoles
2009. Of the total invested capital, 70% came
from national companies with foreign capital.
In December 2009, 692 exploration projects
were registered in Mexico. Of this total figure,
64% were gold and silver related projects,
18% polymetallic projects (copper, zinc, silver
and lead), 13% copper related projects and the
remainder was spread out between several
mineral exploration projects.
Also, the Mexican mining sector posted
a solid trade surplus. As of June 2009, its
exports totaled almost 4 billion usd and its
imports around 2 billion usd.
In terms of employment, at the end of 2009
Mexico’s mining industry employed 270,000
workers. Mining was one of the first Mexican
industrial sectors to show signs of recovery
after the international downturn, generating
4,613 new jobs since August 2009.
Mining in Mexico has seen a year-on-year
increase since 2006, at an average annual
growth rate of 4.8% from 2006 to 2008. The
sector registered an accumulated growth of
23.4% up until September 2009.
Supporting Investment
Mexico was therefore able to remain as a leading
investment destination in 2009 and one of
strongest potentials for mining in the world.
Analysis by prestigious international
firms ranked Mexico in first place for exploration
in Latin America and fourth in
the world. The Behre Dolbear report, published
in 2010, placed Mexico as the world’s
fourth-best investment destination for mining
among a 25-country-list and in first place
regarding the fiscal regime.
To assist investors, the Mexican Geological
Survey has not only improved Internet
access to its geological maps, as well as to
inventories of minerals in the states and geochemical
and geophysical research, but also
the Ministry of Economy provides a follow
up right from the promotion phase until providing
accompaniment during the extraction
or exploration phase, even afterwards,
to review its performance and a successful
conclusion.
The government also provides all information
on providers in the sector, on land
ownership and the licenses and requirements
for handling concessions, to guarantee
legal certainty.
The Ministry of Economy’s Mining Promotion
Trust (FIFOMI) is another key player.
In 2009 it helped capitalize micro, small and
medium-sized mining companies as well as
the sector’s production chain with loans worth
510 million usd, 20% higher than in 2008, in
addition to offering training and technical assistance
to more than 8,000 companies.
The government is particularly interested
in reactivating those mining districts that
are regions with high potential. Exploration
schemes are taking place in those areas and
sixteen districts are expected to be reactivated
between 2009 and 2012.
Work in Progress
This has all combined to create a boom for investors
in search of Mexico’s wealth of mineral
resources, leading to new research and mining
exploration.
In December 2009, 262 Mexican companies
backed by foreign capital were operating
692 projects in Mexico. Of this total figure,
74% of companies are based in Canada, 17%
in the US and 2% in Australia and the United
Kingdom. The remainder is spread out between
another ten countries.
During 2009 new exploration projects
were undertaken. Among them: Palmarejo
and Pinos Altos in Chihuahua, reactivation of
the La Testera plant in El Triunfo, Baja California
Sur and the San Francisco and Lluvia de
Oro mines in Sonora, as well as increasing installed
production capacity in La Encantada
in Coahuila and La Parrilla and Cerro Las
Minitas in Durango.
In 2009, important mining projects consolidated.
That was the case with the Dolores
mines in Chihuahua, Campo Morado in
Guerrero and Peñasquito in Zacatecas. The
latter will begin operations in 2010 and along
with Pinos Altos it will contribute to increase
Mexican gold production by up to 40%.
Other mines starting operations in 2010
are Santa Elena and Luz del Cobre in Sonora,
El Águila in Oaxaca, La Pitarrilla in Durango
and El Boleo in Baja California Sur, which will
start operations in 2011.
But Mexico still has much mineral wealth
to offer throughout its huge territory, enough
to ensure it remains a favorite for investors
with its top-quality deposits and its reliable
and profitable business environment. n