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Guanajuato, a Mining Essential

By James Anderson - Guanajuato Silver
Chairman and CEO

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By James Anderson | Chairman and CEO - Mon, 11/28/2022 - 13:00

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When I go underground at any of our silver mines in Guanajuato, I am reminded of just how physically challenging it is to get raw metals to the surface, and ultimately, to the end consumer. Blasting and gathering heavy rock from deep within the Earth’s crust is a difficult business; then once the extracted material is at the surface, the effort and expertise required to grind ore into a fine concentrate that can then be transported to a port for sale is unrivaled by any other industry. As I marvel at the technical skills and determination of Guanajuato Silver’s experienced team, I often wonder why global mining sentiment is so low, especially for an industry that is so essential to our modern way of life, and so thoroughly demanding of our respect. 

There is no better illustration of the positive attributes of the mining industry than Mexico’s silver mines. Today, Mexico produces more silver than any other country, and along the way, the silver mining industry contributes greatly to the betterment of local communities, infrastructure, and the local and national economies. Mining in Mexico accounts for about 2 percent of GDP; this represents an enormous driver in terms of wealth creation. However, mining companies do far more than just pay their corporate taxes; all of them, all of us, demonstrate unrivalled support for local communities and social initiatives.  

Guanajuato Silver is a small company; however, our positive impact on local communities is immense. The vast majority of our 1,000-plus employees live within a few miles of our mines. There is no “us and them”; we are the community – ¡Somos Guanajuato! – and stable, head-of-household jobs are a mainstay of our operations. We provide long-term employment and benefits that enable local families to thrive. In many cases, local communities are located well off the main grid; in many of the local towns we are the only employer. At the same time that we are providing employment opportunities, our community outreach programs are generating remarkable results. Guanajuato Silver proudly provides clean water services to several local communities; we opened and support a medical clinic; we have committed to the planting of thousands of trees as part of a reforestation program; we provide support for several youth programs and antidrug programs; we support and organize education programs in conjunction with the University of Guanajuato; and we regularly organize clean-up brigades to rid streams and other scenic areas of refuse. The result is that among neighbouring communities, our social license to operate remains strong; the reason for this is that community engagement was never an afterthought; it was a priority from Day 1 – as essential to us as determining the best access to mine a vein of silver. Putting community engagement at the forefront is consistent throughout the Mexican mining industry, and the larger the mining company, the greater the scale of the social commitments. As Guanajuato grows its production profile so too grows our community outreach programs and commitments – again, this is a priority, not an afterthought. 

As the silver mining industry strives to improve the lives of local communities, we also look to innovate in terms of limiting our environmental impact. For underground mining operations, like those run by Guanajuato Silver, the most pressing concerns revolve around waste rock (rock removed from the mine with little or no silver or gold), or tailings (rock that has been crushed and had its silver and gold removed). Innovative alternatives, such as sending tailings back underground from where it came from, are gaining momentum and there is little doubt that the future of mining will include far less large, open tailings facilities, and far less large open pits. We are genuinely excited by the prospect of producing essential metals with limited environmental impact. 

Going back underground with Guanajuato Silver’s geological teams, I am reminded that the real benefit provided by Mexico’s mining industry is that we produce products that are absolutely essential for human development. The rise of mining in ancient societies is directly correlated to human progress and advancement; every step forward that has allowed humans to live increasingly longer and better lives has been carried on the back of the mining industry. Today, most countries are committed to the process of electrification, which is rapidly replacing our fossil fuel economy with technologies that use electricity as the primary source of energy; this momentous transition can only be made possible through the hard work of our miners. The truth is, our civilization would not last more than 15 minutes without mining, and so it is often perplexing how much antimining sentiment exists throughout the world. It has been suggested that it would be a good thing if everyone was required to spend an hour or two in a mine to see just how challenging it is to produce the metals and minerals that are vital to creating the products that we all consider indispensable to maintain our quality of life. Again, no other industry is so thoroughly demanding of our respect.

Dollar for dollar, peso for peso, no other industry gives back to communities on the same scale as the mining industry. The next time you encounter a Mexican miner, por favor dígale, “Gracias amigo!”

Photo by:   James Anderson

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