Demand Spurs Local Cyanide Production

Q:What made the company want to become a cyanide producer in Mexico?

A: Mining is a strategic activity for the development of the country; Mexico has been a mining country for more than five centuries and continues to grow. The technological advances during the 20th century allowed to explore and intensify the mapping and identification of mineral deposits; mining also plays and important role in the economy by contributing 2.4 % to the Mexican GDP. This for sure increased interest among investors.

The geological potential is huge; 70 % of the territory is susceptible to mining projects and as of today only 11 % have been granted for concessions. Today, Mexico has 991 mining projects in which 665 are in the exploration phase, 45 in current development and 107 in production, not to mention the 33 world- class mineral deposits placing Mexico as the largest silver producer in the world and the 11th largest producer of gold.

Having said that, sodium cyanide is an important chemical reagent most used for the extraction process of gold and silver, which allows the cyanide market in Mexico to become one of the largest in the world. In the past, sodium cyanide was supplied mainly by imports coming from the US and Europe, leaving the industry overexposed to any risk within the supply chain. This fact, and our expertise for cyanide production and technology development, led to the decision to invest in a production plant in Mexico. Having a local source of cyanide supports the mining industry by ensuring the supply and continuity of precious metal production. 

Q: Why is cyanide important to the mining industry?

A: According to INEGI and CAMIMEX, in 2020, Mexico produced around 25 tons of gold and 5,000 tons of silver, the production rate decreased compared to 2019 mainly driven by the pandemic shut down at the beginning of the year.

The heap and tank dynamic leaching processes are used for the extraction of precious metals such as gold and silver, where cyanide is the main input and the best option for the recovery process in terms cost-efficiency and having less environmental impact than other reagents. That´s the reason why simplifying its logistics and ensuring its availability is a game changer in the industry because it reduces the risk of mines running out of this essential chemical.

Q: What risks are associated with using cyanide?

A: The topic of cyanide in mining is still controversial due to its hazardous nature. There are risks associated with the use of cyanide; however, those can be mitigated if cyanide is handled safely and following the proper regulations. 

The International Cyanide Management Code (ICMC) is a precedent of the environmental and Responsible Care about cyanide handling. This international code regulates and monitors the standards for the production, distribution, and handling of cyanide. There are also technologies and processes to neutralize this reagent and there are also national and international regulations for waterwaste management in order to ensure that mining companies obey environmental laws. 

In CyPlus Idesa we are pioneers in a direct absorption process, that allows our plant in Coatzacoalcos to have the highest safety standards that fully complies with local and international regulations.  The logistic chain was developed considering maximum safety; it is monitored 24/7 and ICMC certified.  We ensure safe transportation by using the safest logistic channels. Our protocols for transportation are very strict; in this sense, we implement procedures to evaluate risks and identify controls along the logistic chain to be aware of the conditions that may require additional precautions, we also conduct due diligence evaluations on ports and ocean shippers to ensure efficiency and maximum safety in our logistic process. 

We developed an Emergency Response Plan (ERP)that we share with authorities such as the Secretariat of Security, the Civilian Protection, local police, army and Mexican Red Cross to name a few; the intention is that everybody involved in an incident knows exactly what to do to avoid environmental impact or human loss. We also train our personnel and customers on cyanide safety handling and antidote application in case of cyanide intoxication, that training was developed exclusively for us by Mexican and German doctors.

Q: Why did the company choose to locate its plant in Veracruz?

A: The availability of raw materials is a key decision when building a production site. In Coatzacoalcos, our raw materials were available in a distance of 30 km from the facility, this for sure facilitates the task to transport our inputs and ensures availability as well. The second reason was an already established petrochemical industry. Coatzacoalcos hosts one of the biggest Petrochemical Industries in Mexico and qualified personnel to operate.

Q: How do you expect demand for cyanide to develop in the short term?

A: The mining industry suffered from the effects of COVID-19 pandemic and the shutdown of operations last year diminished the growth potential. After more than five years of highest growth, the market is now consolidating to more moderate growth rates. For the upcoming years, we are expecting that mines will recover their production rates. I can say that based on the good expectations for gold and silver price development together with the geological potential of our territory, the Mexican market will continue to grow, additionally supported by the declining quality of gold and silver ores with corresponding increased demand of leaching reagents. 

Q: What new innovations is CyPlus developing?

A: We are always looking how to do things better so we will continue to assess our supply chain to find better ways to get our products and services to customers. We are also looking to migrate into new IoT technologies and services, incorporating them into our value chain. We have joined this wave of technological developments to optimize many of our processes. In the coming months; we will be promoting this new technological trend for the mining sector.

CyPlus Idesa is a joint venture between Germany’s Röhm and Mexico’s Grupo IDESA. It was founded in 2013. CyPlus Idesa supplies sodium cyanide to the mining industry in Mexico with the support of CyPlus GmbH, which has more than 60 years of experience in the production of cyanide in Europe.