Fostering Relationships to Boost Sinaloa’s Mining Industry

Q: What are the main advantages Sinaloa offers as a mining destination?
A: The state of Sinaloa holds significant potential as one of the primary hubs for mining exploration in Mexico. Key players in Sinaloa include DynaResource, McEwen Mining, Minera Real de Cosalá, American Gold and Silver and First Majestic. In the southern region, smaller mines and exploration projects thrive, featuring companies such as Vizsla Silver, GRSilver and Prime Mining. 

Sinaloa's government actively supports the mining sector, fostering positive relationships between mining companies and state, municipal and federal authorities. This collaboration often facilitates the success of projects and the creation of well-paying jobs, preventing migration from mining regions to urban areas. Moreover, Sinaloa's strategic location offers excellent connectivity via land, sea and air. Ports like Topolobampo and Mazatlán enhance global trade links, enabling efficient communication with the northern, northeastern and southern parts of the country.

To further boost investment, we are dedicated to supporting both small and large companies. Our goal is to provide a secure environment and assistance through effective communication channels, ensuring projects are executed responsibly with all necessary permits while respecting the environment and local communities.

Q: How strong is the region’s local supplier network and how can it be strengthened?  
A: The state has a consolidated network. We work closely with the mining clusters to support local suppliers in the state. Despite their potential, many suppliers are unaware of the opportunities in the mining sector, often focusing on agriculture and other sectors. 

We also work with mining associations in Durango, Sonora, Chihuahua and San Luis Potosi, creating a unified front to promote suppliers. The Sinaloa cluster welcomes both local and out-of-state suppliers, believing that competition strengthens the sector. Our goal is to fortify the mining industry to benefit companies and communities. 

Q: How does AIMMGM collaborate with educational institutions to enhance the training of the professionals needed by mining companies? 
A: Our association collaborates with the Universidad Autónoma de Sinaloa and other institutions to support students in the mining sector. We encourage student outreach for internships and job opportunities. Our relationships with mining clusters and associations allow us to secure opportunities for new generations. We also focus on communities near mines, aiming to introduce mining to students from an early age. In Cosalá, we support schools through donations, mine visits and scholarships for a better future.

We grant scholarships to students in need, not just those with high academic performance. We believe in assisting students at various levels, including high school. Our mission is to see these students become successful professionals in the mining industry. These actions benefit students, the community and the mining sector. 

Q: What skills are in higher demand by local mining companies?  
A: There is no shortage of skills but in the mining sector, individuals and companies struggle to effectively communicate their strengths. The key lies in improving communication and intellectual expression. Miners share a commitment to environmental responsibility, inclusion, safety, community development and employment. The skills are present, what is lacking is clear communication channels to showcase these competencies. We need to bridge this communication gap, ensuring that the community understands the mining industry’s contributions instead of harboring misconceptions. 

Q: What can be improved to have a stronger mining sector and to remain an attractive mining destination?  
A: The mining industry faces challenges in attracting investments, primarily stemming from policy issues often formulated by those who lack sector-specific insights. These policies occasionally do not materialize but they still hinder foreign companies' interest in Mexico. Security concerns further complicate matters. Zacatecas, Guanajuato and Michoacan, for example, are considered to be extremely dangerous. Sinaloa used to be considered dangerous but, fortunately, the situation has greatly improved.  

Despite these challenges, embracing modern technologies like AI and machine learning is imperative for the industry's progress. The resistance to these technologies, especially from traditional miners, is noticeable. However these technologies are vital for the long-term sustainability and efficiency of mining operations. We need to promote these technologies and let workers know that technology is not here to take their jobs. 

Another problem is under-exploitation. Mexico boasts significant metallic mineral resources but its non-metallic mineral deposits remain underutilized. The dominance of monopolies, especially in sectors like cement, limits options and competition. Recognizing the untapped potential in non-metallic minerals, such as perlite and wollastonite, could diversify the market and reduce dependency on a few players. For example, Sinaloa has a lot of alunite, which is useful for agriculture. It is also one of the leading agricultural states in Mexico, but farmers buy alunite for MX$2,000 (US$111)/t from other states, where sometimes a single company controls the market. Producing 1t of alunite in Sinaloa costs no more than MX$100 (US$5.56). 

Creating a municipal, state and national inventory of the companies that use minerals would open several opportunities. If we create a state inventory, we could find some good opportunities to further develop the mining sector. 

Q: What is AIMMGM's stance regarding the Mining Law reform?  
A: The Mining Law reform has both positives and negatives. Our association actively fosters discussions with the mining sector and authorities aiming to reach beneficial agreements for all stakeholders. However, we oppose certain aspects that impact investment attraction, reduce exploration activities for existing companies and limit the start of new projects.

The delicate political nature of these discussions requires a balanced approach from the government, businesses and investors to ensure a favorable outcome for everyone involved. Some points in the reform are favorable, such as addressing issues where individuals held concessions without actively working on them for years, hindering potential investments from companies that wanted to develop a project. Canceling such inactive concessions is quite positive as it helps promote a more dynamic and fair allocation of resources.

Environmental and community respect remains a constant priority. The final rules must align with industry needs, avoiding detrimental impacts. The government must know that mining is the beginning of several industries, especially those linked to the energy transition. Minerals are essential for solar panels, wires, electric cars and batteries, among many others. Authorities should work on promoting mining instead of hindering it. 

Q: What is AIMMGM’s role in promoting greener and more responsible practices?  
A: We focus on disseminating information. We bring in specialists to educate our members and others about best practices in mining. This information can also be accessed by the general public. We also support agreements to improve energy and water efficiency, manage hazardous waste and foster positive relationships with communities. We aim to ensure a harmonious approach in workplaces and homes. It is encouraging to see companies taking the lead in promoting and certifying these practices, moving beyond mandatory training from SHCP and starting to invest in personal development. AIMMGM strives to replicate this approach in our training courses. 

We collaborate closely with the Mining Cluster of Sinaloa, the state government via its Directorate of Mining and the Ministry of  Economy. We also have a strong partnership with Women in Mining (WIM), where women are making significant contributions to the sector in Sinaloa. 

The Association of Mining Engineers Metallurgists and Geologists of Mexico (AIMMGM) protects the interests of professionals in the mining, metallurgical and geological fields. Its main objective is fostering collaboration, knowledge sharing and promoting best practices and responsible mining.