Metals Bull Stirs, Miners Scramble for Mexico’s DepositsBy Alejandro Ehrenberg | Thu, 09/10/2020 - 16:23
The Week in Mining underlines progress in Mexico’s project pipeline, where juniors are jumping on the country’s mineral deposits amid rising precious and base metals prices. Even if FDI in Mexico’s industry dropped during 1H20 compared to 1H19, investors’ hunger for gold and silver, added to China’s recovery pushing base metals up, promise intense activity in 2H20 and 2021.
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Mexico’s mining industry attracted US$873 million in FDI in 1H20, according to the Ministry of Economy. That is 18.6 percent less than the same period last year.
Equinox Gold reported that mining activities at Los Filos mine complex in Guerrero have been suspended since Sept. 3, 2020 due to a road blockade by members of the nearby Carrizalillo community.
Tarachi Gold Corp announced it has agreed to acquire a group of four mining concessions covering an area of 1,148ha located in Sonora’s Sierra Madre gold belt. The concessions are known to host the same stratiform, silicified unit as Tarachi's currently optioned Jabali concessions.
Encouraging developments around Almaden Mineral’s Ixtaca project mean that SEMARNAT will finally move ahead with the project’s MIA. A Puebla court decided that an unresolved amparo against the project does not represent an impediment for SEMARNAT.
The European Commission presented an action plan regarding critical raw material sourcing, including lithium. Mexico, which holds the world’s largest lithium deposit, is presented with a massive opportunity.
Gold prices pushed higher as the European Central Bank issued optimistic comments about the Euro’s rally against the US dollar.
Copper prices are surging mainly due to demand gathering pace in China. Chile, the world’s top copper producer, will not reduce its output this year, even amid concerns of ongoing COVID-19 contagions around the country.
In addition, as a result of recovering industrial activity in China, Fitch has revised its zinc forecast upwards to US$2,200/t.