Image credits: Ricardo Gomez Angel
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News Article

Guerrero Hosts Mexico’s Second-Largest Gold Project

By Fernando Mares | Mon, 07/04/2022 - 17:20

The state of Guerrero hosts the second-largest gold-producing company in Mexico: Torex Gold’s subsidiary Minera Media Luna, which its representatives say has improved the living standard of surrounding communities.

In an event held by the Autonomous University of Guerrero (UAGRO), Faysal Rodriguez, Vice President, Torex Gold, said that mining activity has brought benefits to Guerrero’s population. He assured that communities surrounding the Media Luna project have gained better living conditions compared to other villages in the state. 

Faysal highlighted that Media Luna is the second-largest gold producer in the country. He also stressed that the company has improved its operational efficiency and safety, reaching 10 million man-hours without time lost due to accidents, a record for the company. Faysal acknowledged the performance of the company’s team of 2,000 workers, of which 60 percent comes from Guerrero. 

Faysal provided details about works carried out near the Media Luna project. The tunnel under the Balsas river has reached a length of 2km. It will require an investment of US$100 million and is expected to be finished by October 2023, reaching a total length of 7km. “We just surpassed 200m of development in one month, reaching 250m in total. If you ask who in the world reaches this pace, we are unique. Guerrero has world-class mining. Its activity is carried out by highly qualified professionals, most of them locals,” Faysal added. 

The tunnel will connect Media Luna with the Limon Guajes complex. The tunnel will feature a conveyor belt to move minerals to the processing plant in the Cocula municipality. 

Faysal stated that Guerrero’s mining sector has experienced great progress. During the past five years, the sector became the second-largest industry in terms of growth. He highlighted the US$840 million investment Torex Gold is expected to make in the coming years, of which US$500 million will be sourced from the company’s own resources. For the remaining money, the company will seek financing elsewhere. 

In May 2022, Faysal announced the investment program up to 4Q24, which aims to boost the company’s production up to 470,000oz/y of gold. with the launching of the Media Luna Project, the company’s operations can continue until at least 2023. When Faysal announced the investment, he stated that it was the largest investment from a mining company in the state, and one of the largest country-wide.
 

The data used in this article was sourced from:  
MBN, Quadratin Guerrero
Photo by:   Ricardo Gomez Angel
Fernando Mares Fernando Mares Junior Journalist and Industry Analyst