Mining Sector Bound to Attract More InvestmentBy Paloma Duran | Thu, 07/29/2021 - 17:45
Bank of America (BOFA) says that Mexico is an attractive destination for investment, especially in mining, due to its macroeconomic stability. Newmont's profits increased significantly during 2Q21 and are expected to continue due to higher gold prices and production rates. In addition, Mexican mining has begun its transition to a smarter, safer and more efficient industry. But, how well is the industry adapting to Mining 4.0?
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BOFA assured that Mexico continues to be an attractive investment destination; especially in the mining industry. The country is considered one of the top investment destinations in Latin America and in emerging economies, since "it is one of the nations that has a great macroeconomic stability and is increasingly integrated into the North American bloc," said Emilio Romano, Director of BOFA. The Bank highlighted that there are positive expectations regarding better market conditions and certainty, which is why it is making long term investments in Mexico.
Newmont has published its financial and operating results for 2Q21, showing that it significantly increased its profits. Gold production increased 15 percent to 1,449Moz compared to 2Q20 production, mainly driven by higher production where operations were reduced due to COVID-19 and higher ore grade milled and higher mill performance in Boddington, Australia. The company's net profit was US$640 million, showing an increase of US$228 million compared to 2Q20 due to higher sales volumes and prices. The company announced it expects to increase gold production and investments in its most promising assets throughout 2021.
Chesapeake Gold reported positive results of the Preliminary Economic Assessment (PEA) for the Phase 1 mine plan of the Metates gold-silver project in Durango. The PEA demonstrates strong financial performance and rapid capital payback developing Metates as a low cost, scalable heap-leach operation. The PEA forecasts early cash flow generation, which supports future expansions that can be developed by the company. Excellent upside optionality exists to scale up future production to potentially take advantage of the entire resource.
Minera Alamos has provided an update of its Santana gold mine in Sonora. The company announced that its commissioning work at the Santa mine is on schedule with its gold recovery plant tested. Minera Alamos explained that despite bad weather conditions that affected Sonora in the first half of July, the Santana project was not hindered and in fact proved to be extremely resistant to heavy rains. Furthermore, the leach solution pumping and processing systems have also been tested during normal operating flow rates to calibrate the process instrumentation and test control systems. The company announced that it has identified some improvements it could implement.
GL DETECT is the first Mexican company to provide a geomembrane detection service and the only one to offer bipolar detection equipment. Its solutions verify the integrity of the entire waterproofing system and detect faults missed by conventional methods. In addition, they can prevent up to 100 percent leakage of chemicals into the subsoil.
Currently, new trends in mining are driving the modernization of processes and the adoption of new technologies. For years, the Mexican mining sector has been characterized as highly traditional. The question now is how well it is adapting to Mining 4.0 and what is missing to achieve a full technification?