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News Article

Mining Projects Set to Increase Production

By Karin Dilge | Fri, 06/24/2022 - 14:07

Several mining companies are all but assuring their growth in Mexico, as various new projects will begin production this year.

Seven gold, silver and copper assets, worth a total of US$1.2 billion, declared or are set to declare their initial commercial production in the country. The expected production volume of the seven projects is around 356,000oz of gold, 20.4Moz of silver and 35.000t of copper in the year, according to BNAmericas.

One of these projects is La Yaqui Grande, valued at US$137 million and property of Alamos Gold. The project’s first production was announced on Monday, “given its higher grades and recoveries, La Yaqui Grande underpins a strong outlook for Mulatos with higher production and lower costs driving growing free cash flow in the second half of this year and beyond,” said John A. McCluskey, CEO, Alamos Gold. “A total of 991oz of gold were produced from the initial pour. La Yaqui Grande is expected to produce approximately 3,000oz in June which is already factored into second quarter consolidated production guidance of between 100,000 and 110,000oz of gold,” he added.

The Canadian Orla Mining declared commercial production at the Camino Rojo mine in April 2022. The mine is valued at US$134 million after starting operations and increasing processing levels above 75 percent of the nominal capacity, which ascends to 18,000t/y. The company is evaluating possible expansion opportunities at the mine already. Camino Rojo, the only active project of the company, will contribute between 90,000 and 100,000oz of gold this year.

The Las Chispas project of SilverCrest Metals is also poised for growth in Mexico. The company announced that it finished construction works on May 26 and is now moving toward operation. Commercial production is expected for 4Q22, as the company predicts to produce 5,2Moz of silver and 56,000oz of gold a year.

Fresnillo is similarly preparing to initiate full operations at the gold and silver Juancipio mine, following electric utility CFE’s delay in connecting the asset to the grid. Juanicipio, worth US$440 million, is in hands of Fresnillo for 56 percent. The rest is owned by MAG Silver. Juancipio is expected to become a flagship project for the companies. It will enter full production in 2022 and will deliver 11,2Moz of silver and 43,500oz of gold a year.

Southern Copper expects to start production at Pilares this year, The US$159million project could produce 35.000t/y of copper. Furthermore, Altaley Mining informed in May the start of previous exploitation to production and the launching of its grinding plant in its US$56 million Tahuehueto asset, with volumes projected in 46.000oz/a of equivalent gold. The company plans to start drilling by the end of 2022 which could lead to increasing initial processing from 1.000t/d to 2.000t/d.   

Mexico produced around 3,21Moz of gold, 5,600t of silver and 720,000t of copper in 2021, according to the US Geological Survey.

Mexico’s production uptake will greatly boost the country’s precious metals production. Mexico already ranked as the largest silver producer in the world during 2021 in the Silver Survey 2022. This year’s global silver production is expected to grow steadily and reach pre-pandemic levels thanks to newly developing projects, including those in Mexico.

In fact, the organization foresees Mexico to become the main driver of growth. Since it produces nearly 25 percent of the global silver supply, the country is expected to produce over 212Moz in 2022. In 2021, production totaled 196.7Moz. “The biggest increase is expected to come in Mexico, driven by the ramp-up of new and recently commissioned projects, alongside rising production from several established mines,” the report stated.

The data used in this article was sourced from:  
Outlet minero, MBN
Photo by:   pixabay
Karin Dilge Karin Dilge Journalist and Industry Analyst