The state of Chihuahua accumulated US$1.8 billion worth of mining production amid accusations of Minister of Economy Raquel Buenrostro about the sector’s alleged corruption tax avoidance. Moreover, insecurity is taking mining companies to consider it as a tax taking 10 percent of their value production. It was also announced that LitioMx will be fully consolidated in 2023.
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The National Institute of Statistics and Geography (INEGI) reported that the cumulative value of three-quarters of mining production in the state of Chihuahua rose to MX$37 billion (US$1.8 billion).
Matching President López Obrador’s confrontative stance toward the mining industry, the Minister of Economy, Raquel Buenrostro, said that the mining sector often gets involved in corruption and does not pay the taxes as it should.
The Governor of Sonora, Alfonso Durazo Montaño, announced that the Litio para México (LitioMx) project will be consolidated and fully operational in 2023.
Insecurity is one of the most common issues companies in Mexico face. Mining is one of the economic sectors that suffer the most from this uncertainty, as thefts of equipment and processed minerals are all too common. This issue has led industry insiders to consider insecurity as a tax, as it takes away over 10 percent of the value companies produce.
The Canada-based Teck Resources aims to harness the potential benefits of copper leveraging by using resources obtained from its coal mining projects. Experts expect that copper demand will grow in the long-term owing to the energy transition, making the resource a great future investment.
The Luxembourg-based steel producer ArcelorMittal said it would increase its steel production by 33 percent in the medium term. The goal is to reach a production of 5.3 million tons of steel, said company representatives.
The Canada-based silver company Endeavour Silver announced that its recently acquired La Pitarrilla project shows significant mineral estimates, which Endeavour expects will add value to investors. The company said that the estimated 600Moz silver resources are proof of the economic viability of what the industry believed was an underdeveloped mining deposit.
This week, First Majestic Silver announced it entered an Asset Purchase Agreement to sell its 100 per cent-owned La Parrilla silver mine located in the state of Durango to Golden Tag Resources for a total of up to US$33.5 million.
Canada-based junior company Heliostar Metals announced a recent discussion to acquire Argonaut Gold’s Ana Paula and San Antonio gold projects. Heliostar believes these acquisitions will completely transform the company into a high-margin gold company.