Companies Continue Their Bet on Coal
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Companies Continue Their Bet on Coal

Photo by:   Nikolay Kovalenko
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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Thu, 08/25/2022 - 10:00

Coal is an important resource for the energy supply chain of Mexico and the government is investing to look for more coal deposits. Private ompanies also continue to rely on coal due to its cheap price. Moreover, government representatives are asking for more safety conditions for mine workers. In addition, big mining corporations continue to have positive exploration, financial and production results.

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More Coal is Bought Even Though Climate Change Worsens

Even though climate-related problems are worsening around the world, coal mining companies continue to make huge profits, as the fossil fuel continues to be seen as an optimal source to provide cheap and reliable energy. Meanwhile, the Mexican government continues to defend its position on buying coal, arguing that it benefits small producers and generates little pollution in the country.

SGM to Study Potential Coal Deposits in Mexico

Since coal represents 10 percent of the state electric utility’s CFE energy supply, the Mexican government launched a program to ensure the mineral’s supply by looking for more coal deposits and updating the reserves.

Puebla To Prevent Lithium-Related Land Speculation

Although the Mining Law reform banned the private sector from exploiting Mexico’s lithium resources, companies are still interested in participating in the supply chain. Amid these developments, some local governments are worried about land speculation in communities holding potential reserves. The governor of Puebla, Miguel Barbosa, declared he will monitor the situation to nip the practice in the bud.

Maseual Community Rejects Mining Concessions Consultation

An Indigenous community in Puebla rejected to be consulted about three mining concessions that would have been developed on their land. The inhabitants argued that the mining projects could interfere with their uses and customs. Some experts consider this decision to be a precedent of what the mining industry can expect in the coming years.

Leading Union Says Mexico Must Ensure Mining Workers’ Safety

Napoleón Gómez Urrutia, Senator for ruling party MORENA and Head of the National Union of Mining, Metallurgical, Iron, Steel and Similar Worker of the Mexican Republic (SNTMMSSRM) urged the government to improve the workplace conditions of mining workers, since he considers it is the government’s duty to ensure no safety problems arise at mining operations.

Morena Senator To Promote Safer Conditions for Workers

A MORENA senator said that during the next session of the Chamber of Senators, the senate will make the monitoring of the working conditions of Mexican mines a priority, as well as revise international treaties that Mexico signed regarding safety for mining workers.

Government Ask Mining Workers to Join Rescue Efforts

The Mexican government called on mine workers to help rescue the 10 miners trapped in Sabinas, Coahuila. In addition, the authorities requested foreign companies to validate a new rescue strategy and join the rescue efforts.

Durango: Mexico’s Fourth-Largest Mining State

The mining industry in the state of Durango created 13,600 direct jobs and 68,000 indirect jobs and has annual economic spending of around MX$22 billion (US$1.09 billion). Durango is therefore the fourth most important mining state in Mexico.

Inflation Hits Mining Companies’ 2Q22 Results

Experts said several mining companies were forced to raise their 2022 cost guidance in 2Q22 due to inflationary pressures that are driving up prices for key inputs. After many Mexican mining companies announced that inflation will continue to affect their operations in the second half of 2022, some are already looking for ways to mitigate its negative impact.

Americas Gold and Silver Reports 2Q22 Production Results

After a 20-month blockade, the San Rafael Mine owned by Americas Gold and Silver restarted operations in September of last year. This week, it announced a 2Q22 production of approximately 128,000oz of silver, 9.9 million lb of zinc and 3.9 million lb of lead.

Fortuna Silver Reports Solid Quarter Despite Challenges

Fortuna Silver announced its 2Q22 results, highlighting that although it saw a reduction in silver production, gold production increased significantly. The company highlighted that despite challenges such as falling metal prices, it had a strong quarter. However, Fortuna announced that it expects to exceed its 2022 cost guidance due to inflationary pressures.

MAG Silver Reports Solid 2Q22 Financial Results

MAG Silver reported its 2Q22 financial results, showing the company's strong position to continue developing its Juanicipio project. In addition, MAG Silver announced that issues such as the labor reform and a tie-in to the national power grid could increase the cost of the project. However, the company is financially well-positioned to cover these additional expenses.

GR Silver Announces Discovery of High-Grade Silver

The Canadian company GR Silver announced a new silver (Ag) discovery in the first drill hole within the San Marcial Resource Area of the Sinaloa-based Plomosas Project.

Bradford Cooke, Founder of Endeavour Silver, Passes Away at 67

Endeavour Silver announced that its Founder, Director and Executive Chairman, Bradford Cooke, died unexpectedly on Aug. 18, 2022. The company, as well as Mexico Business News, send their condolences to his family, friends and the mining community. His legacy as well as his exemplary optimism and care for people will continue to impact the mining industry for years to come.

Photo by:   Nikolay Kovalenko

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