Mexico’s Mining Pipeline Increased to US$9.08 Billion
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Mexico’s Mining Pipeline Increased to US$9.08 Billion

Photo by:   Sid Verma
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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Mon, 11/22/2021 - 09:28

Mexico’s mining pipeline has increased to US$9.08 billion due to the arrival of new investments. Currently, the country has 26 projects that are expected to begin production before the end of 2028. These projects will increase Mexico's annual gold, silver, copper, zinc, lithium and lead production  significantly.

In May, the country's pipeline consisted of 25 projects with a total investment of US$7.8 billion. Subsequently, the list increased to 26 projects, totaling  US$8.60 billion. Due to the entry of new projects and their production plans,  investments now totalUS$9.08 billion, reported BNamericas.

The new projects will focus mainly on gold and silver due to the rise in the prices of these metals, which has created a favorable environment for their development. Copper projects are also expected to increase.

The new projects are expected to increase Mexico's annual production by around 1.5Moz of gold, 33Moz of silver, 369,000t of copper, 193,000t of zinc, 35,000t of lithium carbonate and 3,000t of lead.

Among the new investment projects are Metates of Chesapeake Gold, which has one of the largest untapped gold deposits in the world. The company announced an initial investment of US$359 million and expects a production of 91,000oz of gold and 1Moz of silver per year for the next 31 years. However, the first 15 years of production will be 110,000oz gold and 2.5Moz silver annually. Production is expected to begin in 2025.

Another project is Cerro Caliche of Sonoro Gold, which has a CAPEX of US$32.2 million. The company will go from being an exploration company to a producer in 2022 as it will start gold production during the first half of the year. Its September PEA showed the company has 45,700oz of gold equivalent for seven years.

Sierra Metals will also bring increased investment to Mexico as it seeks to expand its Cusi mine to double its processing speed. In 2020, the company's expansion plan sought to increase its processing capacity to 1,200t/d. Its next expansion plan aims to reach 2,400t / d by 2024-2026. The company’s 2020 PEA showed a CAPEX of U$91 million and a production of 33.4Moz of silver over 13 years, reported BNamericas.

Furthermore, Southern Copper's Pilares, El Pilar and Buenavista Zinc projects are expected to begin their first production in the next two years. Additionally, Fresnillo expects to start its Rodeo and Orisyvo production projects between 2024 and 2025.

Four projects are expected to begin with their first production by the end of 2021: Juanicipio of Fresnillo and MAG Silver, which has an investment totaling US$440 million; Orla Mining's Camino Rojo, with a US$134 million investment; Altaley Mining's Tahuehueto, with a US$20 million investment and Fresnillo’s pyrite plant with US$ 155 million, reported BNamericas.

Most of the projects have advanced as scheduled during 3Q21. However, there are some factors that are affecting investments in the mining sector such as the president´s controversial electricity reform, the COVID-19 pandemic, the rise in the prices of supplies, among others, MBN reported.

Photo by:   Sid Verma

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