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News Article

Guerrero: The Next Pole for Mining Projects

By Paloma Duran | Thu, 05/12/2022 - 11:59

Due to the growing importance of mining in Guerrero, the Guerrero Mining Cluster has taken up themission of promoting the industry up to the level of Mexico’s main mining states. The Cluster believes that Guerrero has the geological characteristics to make this happen. However, the payment of taxes and the position of the government have an adverse effect on the arrival of more investors.

During the past decade, mining has become one of the most important industries for Guerrero despite it having only 6 mines in operation and 5 exploration projects. According to the Guerrero Mining Cluster, mining has grown an average of 14.3 percent per year, going from 18th to 9th place regarding contribution to the state's GDP. For this reason, the Cluster said that strengthening the mining sector is a priority, especially since this ill make Guerrero more competitive against strong mining states such as Sonora and Zacatecas.

According to Enrique Margalef, President, the Guerrero Mining Cluster, Guerrero could become a major mining state because it is part of the 60 percent of Mexico’s territory that is suited for mining operatons. In addition, Margalef pointed out that there are still around 10Moz of gold to be discovered in the state's gold belt. However, unlocking its value requires more exploration and geological mapping.

“If I show the map of Sonora, it is full of geological and geophysical maps to identify where there may be mineral deposits. What we want to do is for Guerrero to reach that level. It has the geological potential to do so, but exploration has not been developed sufficiently. We believe that Guerrero can have an industry the size of Sonora, Zacatecas or Chihuahua,” said Margalef.

In a past interview with MBN, Gibson said Guerrero was one of the best new developing districts in Mexico because it had world-class deposits and was becoming a key location for mining. “The Guerrero Gold Belt is a phenomenal area for the exploration of important gold deposits. It has some social problems that have affected the development of the region. Nevertheless, it remains a key reference for gold exploration.”

Margalef stressed that currently only 11.9 percent of the state’s territory is concessioned. In 2015, this figute stood at 22 percent, having dropped throughout the years because many miners did not find minerals and struggled to pay the high amount of taxes. In addition, hef highlighted that the decrease in concessions also has to do with the government's position, which does not inspire much trust in investors. Consequently, the Cluster said that it is also a priority to demonstrate its commitment of promoting responsible mining as well as the social and economic wellbeing of the state.

The data used in this article was sourced from:  
Forbes, MBN
Photo by:   Built Robotics
Paloma Duran Paloma Duran Journalist and Industry Analyst