Mexico’s Top Copper Producer to Invest More in SonoraBy Paloma Duran | Tue, 08/02/2022 - 18:27
Grupo México announced that it will invest significantly in Sonora in the coming years, creating new jobs and generating wealth in the region. In addition, the company is also carrying out infrastructure works to improve access to water in Nacozari and Cananea.
Grupo México plans to invest MX$38 billion (US$1.9 billion) to expand its mining operations in Sonora. The company announced that so far, the projects it is eyeing are already for 47 percent complete but are expected to be fully finalized by 2027. The company's Buenavista Zinc and Pilares projects are expected to receive the largest investments.
Javier García de Quevedo, Executive Vice President, Grupo México, said that this new investment will generate 5,750 jobs during the construction phase and 5,660 when the projects are operational. Additionally, Irma Potes, Director of Community Development, Grupo México, said that the company is also investing in infrastructure works to repair and rehabilitate the water network of the Nacozari and Cananea communities.
“It is an exceptional investment, which will translate into sources of employment. These activities grant the possibility of improving the social dynamic of the state. Socially responsible companies like Grupo México bring important benefits to the Sonora. I appreciate these investments. My government will seek to generate better conditions to attract more companies like Grupo México,” said the Governor of Sonora, Alfonso Durazo.
In 2021, Grupo México announced that it would increase its investment in projects in 2022 as a result of significant profits. According to the company, 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 2021, 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.
The company recently reported its 2Q22 results, having obtained a net profit of US$611 million. This was 40.5 percent lower than the profit of 2Q21, when it gained US$1 billion. Grupo México’s mining branch was affected by a two percent decrease in copper prices and a decrease in production. It reported that between April and June 2022, production stood at 236,800t, which is 12 percent lower compared to the same period in 2021.