David Dajlala
Delegate of Chihuahua
Federal Economy Ministry
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Insight

Federal Government Support for Mining in Chihuahua

Mon, 10/21/2013 - 10:44

The Federal Economy Minister has offices in each Mexican state, as well as in other countries, to provide information on starting a business and securing funding, as well as to give advice and training to businesses and entrepreneurs that want to export, import, and invest in Mexico. The goal of each delegation is to promote, guide, encourage and stimulate the development of micro, small, medium, and large businesses.

David Dajlala is Delegate of the Federal Economy Ministry for the state of Chihuahua. “The most important challenge for the Delegation is to facilitate the permitting process so that big mining companies, whether domestic or foreign, invest in Chihuahua. We want to open the way for them so that they do not hesitate to start their mining operations in the state. If we are able to facilitate the permitting process mining companies will be more efficient, and therefore more productive,” he emphasizes.

Mining activities in the state are divided into two parts: large scale mining and small scale mining. Dajlala highlights that each type of operation has different needs and requirements. Since Chihuahua’s mining cluster was created it has brought members of the large-scale mining group together. Small scale mining is therefore where most of the Delegation’s efforts are focused, since it requires funding, technology, advice, and help with permits, and involves hurdles that large scale mining does not. However, the Delegation’s job is to facilitate the permitting process for both types of mining operations, so that both activities thrive, communities are strengthened, and work is provided to Chihuahuans. One example of how small scale mining is supported is the Luis Escudero Processing Plant, which was acquired by the state government to support small scale mining in its mineral processing. In the past, small mining operations that produced small quantities of mineral could not process it anywhere, but over 200 operations in the region are now benefitting from the plant. Through the state’s Economy Minister, and together with the Mexican Geological Survey (SGM), the Delegation provides advice, helps companies with their sampling, and supports laboratory-related activities, because usually they do not have the required equipment to carry out the necessary analysis. The Government Trust for Mining Development (FIMOMI) also provides resources so that the small operations have enough cash to continue working their mines. “The Delegation’s current objective is to lower permit-processing times. We are in charge of granting permits and concessions, and our aim is to reduce the time that passes between a user placing a request and us giving them an answer. Making permitting processes more efficient will have a positive impact on the mining industry; both large scale and small scale mining will benefit, as will the state and national economies,” Dajlala says.