Mining Reports Seven Consecutive Months of Growth

Mining activity in Mexico increased by 9.1% in July, marking its seventh consecutive month of growth, despite ongoing legal and security challenges. In other news, BHP has warned that the rise in AI applications could worsen the global copper shortage, as data centers and AI systems demand more energy-intensive computing, potentially requiring an additional 3.4Mt of copper.

Ready for more? This is your Weekly RoundUp! 

Mining Sector Maintains Growth Trend for Seven Consecutive Months

In July 2024, mining activity in Mexico surged by 9.1% year-on-year, marking the seventh consecutive monthly increase for the sector, reports INEGI. Despite the country’s limited project pipeline, uncertainties related to the 2023 mining reform, and the anticipated ban on open-pit mining, the sector has continued to grow due to rising metal prices and increased production.

UN Releases Responsible Extraction Recommendations 

UN Secretary General António Guterres announced a set of recommendations regarding critical minerals essential for the energy transition. Recommendations emphasize the need for equity, justice, and sustainability as global demand for these minerals is expected to nearly triple by 2030.

Putting People First: Talent Drives the Energy Transition 

Jim Norine, Vice President Southwest USA, Ausenco, says Mexico is uniquely positioned to capitalize on the surging demand for copper and lithium, driven by the global green energy transition. Norine notes that while Mexico has abundant resources and world-class infrastructure, the biggest challenge will be ensuring the mining industry has enough skilled engineering talent to meet this unprecedented opportunity.

Alamos Gold Increases 2024 Production Guidance by 13% 

Alamos Gold, a Canada-based precious metals company, has updated its production and operating guidance for the next three years following the recent acquisition of the Magino mine in Canada. The revised guidance for 2024 reflects an increase of 13% and positive performance at the Mulatos District in Sonora. 

First Majestic, Gatos Silver Merge to Expand Silver Production

First Majestic Silver is set to acquire explorer and developer Gatos Silver in an all-stock transaction worth US$970 million. This merger will unite the assets of both companies, bringing together three silver-producing mining districts. Gatos’ Cerro Los Gatos mine will become part of First Majestic’s portfolio alongside the San Dimas mine in Durango and the Santa Elena operation in Sonora. The Los Gatos district comprises 14 mineralized zones identified to date, including three silver-lead-zinc deposits: the Cerro Los Gatos mine, the Esther deposit, and the Amapola deposit. 

Newmont to Raise US$2 Billion from Non-Core Asset Sales 

Newmont has announced plans to raise at least US$2 billion by selling smaller mines and development projects. This move is part of a strategy to focus on Tier 1 assets, which are capable of producing a minimum of 500,000oz/y of gold equivalent (AuEq) for at least a decade, while also increasing the company’s focus on copper.

BHP Warns AI Expansion Will Exacerbate Global Copper Shortage 

BHP has cautioned that the expansion of AI will exacerbate the global copper shortage. The company forecasts that global copper demand will rise to 52.5Mt annually by 2050, up from 30.4Mt in 2021, marking a 72% increase.