Last week, the Juanicipio Fresnillo PLC plant in Zacatecas, which required an investment of close to MX$10 billion (US$587.24 million), was inaugurated. To ensure a successful operation at Juanicipio, state authorities and Fresnillo signed a MX$500 million (US$29.36 million) collaboration agreement to promote local suppliers and incorporate them to the company’s supply chain.
On August 18, Governor David Monreal Avila visited the Juanicipio mine, owned by MAG Silver and Fresnillo, to sign the new agreement. Monreal emphasized that the new plant and the agreement will boost the economy of the people of Zacatecas, as more economic wealth will be generated. The agreement with Juanicipio is the fourth of its kind established by the government, with the objective of boosting 600 local supplier companies.
Currently, the Ministry of Economy oversees the promotion of local companies so they can enter the mining market and satisfy its high demands. "Our goal is for the entire community to develop around mining activity. I am convinced about mining promotion. However, I want to promote a mining industry that respects nature, the environment, labor rights and social justice through the distribution of wealth to its workers," added Monreal.
MAG Silver owns 44% of the Juanicipio project, located in Zacatecas, while 56% is owned by Fresnillo. The development consists of two main vein systems: Valdecañas and Juanicipio, both prolific epithermal silver and gold structures. At the beginning of this year, the companies announced that they expected the project to produce 11.7Moz/y of silver and 43,500oz/y of gold. According to Outlet Minero, considering Fresnillo alone, there are more than 10,000 employees in the company and the economic dispersion of salaries exceeds MX$200 million per month.
On June 1, 2023, MAG Silver and Fresnillo achieved commercial production at Juanicipio. With this achievement, the company processed 377,018t of minerals, at a silver grade of 498g/t. In 2Q23, the project produced 5.275Moz of silver, 10,639oz of gold, 3,402t of lead and 5,418t of zinc. Recently MAG Silver reported that the Juanicipio project had a transformational quarter in 2Q23, achieving a 134% increase in silver production compared to 1Q23. The company explained that the increase was due to the entry into commercial production of the mine and the increase in the milling rate.