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Weekly Roundups

Mexico’s Mining Industry Grows

By Karin Dilge | Thu, 09/01/2022 - 10:00

The Mexican Mining Chamber (CAMIMEX) reported significant investments in 2022 for the sector and said that the industry keeps growing despite political challenges. Moreover, gold prices decreased on Monday, showing a one-month low. In addition, miners in Coahuila remain trapped and authorities say it will take at least six months to rescue them.  

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Despite Challenges, Mexico’s Mining Industry Grows

CAMIMEX reported that the mining industry grew in 2021 even though its relationship with the federal government turned increasingly complicated. Although the sector's growth was celebrated, experts say it could be in an even better position if the Mexican government gave more incentives to mining companies and granted new concessions.

Mexican Mining Sector Attracts Significant Investment in 2022

CAMIMEX announced that mining companies will invest significantly in 2022, exceeding 2021's investment levels. However, 2022’s figure would still be far from the industry’s record figure in 2012 due to challenging conditions such as insecurity issues and new mining policies.

Gold Prices Show One-Month Low

Spot gold prices decreased on Monday after the President of the US Federal Reserve, Jerome Powell, issued more rate hikes to rein in inflation that hit a four-decade high in the world’s largest economy.

Search for Trapped Mining Workers Will Take Much Longer

The Mexican government announced that since it is currently impossible to find the 10 miners trapped in the collapsed mine in Sabinas, Coahuila, it has drawn up a new rescue plan. However, the new works could take more than half a year, depending on the difficulty of the terrain. The relatives of the victims are not satisfied with the new plan and want the rescues to take less time, as hopes of finding what are now presumed to be the bodies of the workers begin to fade.

Peñoles Will Incorporate Frequency Bands To Improve Safety

The collapse of a coal mine in Sabinas, Coahuila, where 10 miners have remained trapped for weeks, has drawn the attention of some that believe the entire mining sector operates in the at times rudimentary ways that coal mines do. This caused Mexican companies to show that their projects comply with safety regulations. In this context, Industrias Peñoles invested significantly in modernizing and digitalizing its operations to strengthen safety conditions in its mines.

Mexican Geological Survey Should Manage LitioMx, Experts Say

The creation of the new state lithium company LitioMx is the culmination of a series of efforts by the Mexican government to control the lithium value chain. The move toward nationalization has been criticized by the opposition and industry insiders ever since it was proposed. Now that the state company has finally been created, some experts disagree with its structure, mainly because they say that the Minister of Energy should not spearhead the company.

New State Company Litio Para Mexico Sees Light of Day

After months of speculation and expectation, the Ministry of Energy (SENER) published a decree that founded Mexico’s state-owned lithium company Litio Para Mexico which, according to the official narrative, will protect Mexico’s energy sovereignty. The decree completes what the Mining Law reform started in April 2022.

The Five Most Important Mining States in Mexico

In 2021, the states of Sonora, Chihuahua, Zacatecas, Durango and Guerrero continued to be Mexico’s leading states in the mining industry. According to a report by the Mexican Mining Chamber (CAMIMEX), these five entities headed the value of metallurgical mining production with an 83.8 percent contribution. The state of Sonora occupies first place with 33.3 percent, followed by Zacatecas with 20.1 percent, Chihuahua with 16.4 percent, Durango with 9.5 percent and Guerrero with 4.7 percent.

Governor of Durango Acknowledged as Mining Ally by AIMMGM

The mining sector considers Durango as one of the most important mining states in Mexico. This appreciation appears to be mutual, since Governor of Durango José Aispuro has been acknowledged as the first governor in the country to address the industry’s needs.

Guanajuato Silver Announces 2Q22 Production Results

Canada’s Guanajuato Silver announced its operating and financial results for 2Q22, registering a 22 percent increase in its precious metals production for the quarter. The company reported total production of 155,912oz of silver and 2,161oz of gold, for a total of 337,760oz silver equivalent. Guanajuato Silver reported that in 2Q22, 94,212 tons were milled at El Cubo, an average rate of approximately 30,000t/m, which is below El Cubo’s maximum milling capacity of over 45,000t/m.

Magna Gold Reports Solid Quarter Despite Difficulties

Magna Gold reported the 2Q22 operating and financial results from its San Francisco mine in Sonora, Mexico. The company highlighted that despite having ore sourcing problems, it closed a solid quarter with results close to those of 1Q22. The company also announced new initiatives it will implement to prevent such issues in the future and to maximize its operations.

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Karin Dilge Karin Dilge Journalist and Industry Analyst