Mexico Remains Top Silver Producer, Falls in AttractivenessFri, 02/28/2020 - 12:36
The week brought ups and down to the mining industry in Mexico and the world. Mexico lost attractiveness as an investment destination for the mining industry, even as it remained the Top producer of silver globally. Grupo México announced a significant investment even after it had to close down a mine in the north of the country.
In international news, the COVID-19 outbreak has taken victims in the mining sector, with the price of copper and zinc falling amid fears of the consequences of the contagion. However, these same fears have risen the value of gold to its highest levels in several years.
Mexico: Good News, Bad News
Mexico lost attractiveness for the mining industry according to the Fraser Institute’s Annual Survey of Mining Companies. However, the country continues to be the world leader in silver production with 6,300 ton and is now the 12th producer of gold with 1,200 ton produced in 2019.
Grupo México has high expectations for the year as it announced a US$1.992 billion investment in 2020, an increase of 78 percent over last year’s investment. Not everything is positive for the group, however, as it reported that its San Antonio mine located in Aquiles Serdan, Chihuahua, is on hiatus. The mine’s closing leaves 382 people without a job.
Fresnillo and MAG Silver will begin production in Juanicipio mine in Zacatecas sooner than expected. The mine is expected to produce a total of 11.7 million ounces of silver and 43,500 ounces of gold. The announcement contributed to a 10 percent increase in its stock.
COVID-19 Spreads to the Mining Sector
The coronavirus outbreak now hits the mining industry. Price of copper slips among fears of a lower demand on metals due to fears of a global pandemic. Zinc was also hit and fell to its lowest point since 2016. On the other hand, gold price climbs to its highest point in seven years.
China’s inventories of steel, copper and zinc build up as demand falls due to the spreading of COVID-19.