The Mining Law Reform continues to face criticism, as more strict environmental regulation is increasingly becoming a challenge to mining companies. The price increase in copper is further cause for worry in the sector. Nevertheless, companies keep investing and developing projects in their move to the south of the country.
Ready for more? Here is your weekly roundup!
Karen Flores, Director General, Mexican Chamber of Mining (CAMIMEX) foresees a difficult environment for mining investment in 2022, as she assured that funding will drop significantly due to the lingering uncertainty created by both the current and the previous government.
The company Zacatecas Silver Corp. provided an update on its El Cristo vein system located within their Zacatecas property. According to the company, SEMARNAT approved 30 drilling permits at El Cristo. “Multiple oxidized and silver-base metal mineralized veins were defined over a strike length of at least 4km significantly extending the previous reported strike length of 2.5 to 3 km,” reported the company.
The Mexican Network of People Affected by Mining (REMA) criticized President López Obrador’s government for approving the Mining Law’s reform, since it sticks to the mining market’s status quo and continues to promote an unfair mineral extraction model.
Esperanza Silver reached an agreement with the Tetlama community, which lives close to its Esperanza mining project. The company informed that owing to the transparency of the project, the inhabitants were able to participate actively in the mine’s development.
Minera Media Luna, a subsidiary of Torex Gold, will invest considerably with the aim of integrating its Limon Guajes and Media Luna projects and extending the gold project’s useful life until 2033.
ArcelorMittal, a leading steel company, plans to invest more resources to develop its ore extraction operations in Michoacan. During the announcement, Michoacan Governor Alfredo Bedolla said he considers the investment of great importance for the state’s economic recovery, as well as an impulse for development.
On May 5, 2022, Mexican authorities instructed a Vulcan Materials subsidiary to stop the extraction of minerals in Quintana Roo, after President Andrés Manuel López Obrador promised to take legal actions against the company for allegedly breaking an agreement with the government. The company now outlined its own version of the events, arguing it still held all necessary permits.
Sonoro Gold reported that it has sent its Environmental Impact Statement (MIA) for the Cerro Caliche gold project in Sonora to the environmental ministry SEMARNAT. The company announced that it is currently completing the required documentation for the change of land use application (ETJ).
Copper prices have increased in the past four months since operators anticipated the risk of an interest rate increase, a factor that added to the uncertainty generated by a COVID-19 upsurge in China and the deceleration of industrial activities as the main factors affecting the demand.
Although copper is expected to benefit significantly in the coming years as it is considered one of the key metals for the world's green energy transition, the metal has been affected by external events such as China’s COVID-19 restrictions. Consequently, the International Copper Study Group (ICSG) has lowered some of its outlook for 2022.
Grupo México reported financial losses during 1Q22, mainly due to a 54-day production interruption at its Cuajone complex in Peru. The company announced that it expects better results in the coming quarters as the complex is already back to operating at full capacity.
With the launching of the new W Series, Reggiana Riduttori has enhanced its product range and further positioned itself as one of the leading providers of world-class technology in gearbox integration. Modularity and flexibility are considered the most attractive features of the new W Series, unmatched by any other product on the market.