Mexico’s Top Copper Producer to Invest More in 2022By Paloma Duran | Fri, 02/04/2022 - 11:10
In 2021, Grupo México reached record revenues largely due to its mining operations and higher copper market prices. The company said that it will significantly increase its investment to further develop projects, since the outlook for 2022 remains optimistic.
Last year, Grupo México's revenue reached US$14.7 billion, a record for the company and 35.3 percent more than in 2020. Grupo México explained this figure resulted from its mining division achieving record revenues of US$12.09 millions, 41.1 percent higher than in 2020.
Grupo México explained that despite a decrease in production and the country’s high inflation, it managed to break records because of the combination of its mining operations and an excellent environment for metal prices. Since this trend is expected to continue, particularly for copper, the company said it will invest US$2.27 billion in 2022 to consolidate various projects.
“We view the future with optimism, given the positive market environment and our growth projects in our mining division, which will generate excellent results to the benefit of our stakeholders,” said the company in a press release.
Grupo México said its Mexican projects are going through new investment stages, valued at more than US$7.7 billion over the next 10 years. For instance, the Buenavista Zinc project has a budget of US$413 million. Up to December, the company had invested US$217 million. Grupo México added that this year will be key for the project, since it is expected to be operational in 2023.
The Pilares project has an investment budget of US$159 million, of which US$75.9 million have already been deployed. Much of the budget will be used this year to finalize details and start operations in 2H22. Furthermore, the El Pilar project has a budget of US$310 million and is expected to start production in 2024.
Finally, the company said it will continue working on its large-scale project El Arco throughout 2022. The company already completed a base study and its environmental impact statement is currently under review. Grupo México’s Lima Plant, which will reduce lime processing costs of projects in Mexico by 50 percent, is expected to start operations in 3Q22.