Grupo México Denies Receiving Favors from CONAGUA Officer

Mexico’s largest copper producer, Grupo México, rejected President López Obrador’s accusations that the company gained a water concession for its Buena Vista Mine as a favor from a former National Water Commission (CONAGUA) officer. 

On Nov. 10, 2022, López Obrador said that a former CONAGUA officer granted a water concession to Grupo México’s Buenavista mine, previously known as the Cananea mine. López Obrador accused both the official and the company of corruption, alleging that the former officer is now working at the company. “That is why it is said that the government was controlled, hijacked, serving a minority. That is why we talk about an oligarchy,” López Obrador added, referring to previous administrations.

López Obrador declined to reveal the former officer’s name. Later that day, CONAGUA issued a statement regarding the extension of the concession for operating the Buenavista mine and revealing the officer’s name: Victor Alcocer, formerly responsible for CONAGUA’s Technical Directorate. The commission confirmed that Alcocer is currently working at Grupo México. 

Grupo México contradicted the government’s version of events. According to the company, Alcocer was hired because of his broad experience as a specialized technician in water issues and assured that the hiring process was conducted adhering to all requirements by law and following ethics codes.

The company said that the last concession for the Buenavista mine in force today dates to 2013. “No new water concessions have been received during the current administration. In 2018, CONAGUA granted an exploration right for the extraction of water in the Agua Prieta area, in Sonora, but the company renounced it in February 2021, as it was unnecessary,” the company said in a statement. 

Grupo México said that it is open to providing the government with any additional information on the matter. The company added that it made progress in providing water for the inhabitants of Cananea and refurbishing the distribution network of the municipality, as agreed with the government under the Justice Plan for Cananea. These projects are developed under the lead of Alcocer. 

On Aug. 2, 2022, MBN reported that Grupo México planned to invest US$1.9 billion to expand its mining operations in Sonora. The investment plan included the repair and rehabilitation of the water network. “Socially responsible companies like Grupo México bring important benefits to Sonora. I appreciate these investments. My government will seek to attract more companies like Grupo México,” said the Governor of Sonora, Alfonso Durazo.