The Latest Mining Policy Changes Had Only a Modest ImpactBy Paloma Duran | Wed, 06/15/2022 - 11:45
Despite a negative public rhetoric toward Mexico’s mining industry, the sector is not experiencing the strongest impact, say analysts. To assure fair prices for lithium exports in the region, the Latin American Strategy Center for Geopolitics (CELAG) considers the creation of a multilateral organization. In addition, Fresnillo and Peñoles said their environmental programs helped them be appreciated by federal authorities and sustainability watchdogs.
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The uncertain environment in the Mexican mining industry created by the latest policy changes appears to merely have had a modest impact, since companies continue to carry out their operations and look toward investment. Nevertheless, regulatory risks and political unreliability are weighing on new investment, with companies looking for opportunities in other Latin American countries.
The global lithium demand is expected to grow 42 times from its current size by 2040, as the threat of catastrophic climate change is urging developed countries to accelerate their energy transition, which requires key minerals such as lithium. In this context, Latin American countries may be benefit on the back of this increasing demand as lithium’s key producers.
The mining sector is often subjected to a negative public perception, mostly because of its heavy water consumption, even though it consumes less water than the agriculture and livestock industries. Compañía Minera Cuzcatlan, the Mexican Subsidiary of Fortuna Silver Mines, reported that it has never used underground water for its operations at its San Javier Mine located in Oaxaca. Instead, the company recycles and reutilizes waste water.
Industrias Peñoles and Fresnillo announced the results of their environmental programs, carried out across their mining, metallurgical and chemical branches. The programs have yielded positive results regarding energy and water consumption, as well as the preservation of flora and fauna.
In an updated Technical Report on its Morelos Complex, Torex Gold outlined the development of its Media Luna Project. With tremendous future exploration potential, advancing the Media Luna Project is fundamental to setting up the Morelos Complex for safe and reliable production and strong free cash flow post the construction period, which will lay the foundation for the company’s future growth.
Sonoro Gold reported the assay results from the last seven drill holes of its Phase IV drilling program at its Sonora-based Cerro Caliche gold project. With the new results, the company has confirmed the possible expansion of known mineralized zones.