Mining Sector’s Sustainability Efforts IncreaseBy Karin Dilge | Wed, 05/25/2022 - 14:31
Major mining companies are starting to implement sustainable practices in their operation to comply with the UN’s Sustainable Development Goals. In other news, mining reportedly uses less water than agriculture in the state of Sonora.
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Despite the worries of mining industry insiders regarding growing regulatory risks and operational uncertainty, a group of leading mining companies are on track to invest significantly in Mexico, as their CAPEX remains high.
Consistent with the company’s efforts to comply with objectives proposed in the new model of Socially and Environmentally Responsible Mining, Esperanza Silver outlined a new community relationship plan.
Luis Medina, Vice President, Agnico Eagle Mexico, said that mining uses just a fraction of the water that industries like livestock or agriculture in Sonora.
Lithium is considered one of the most essential minerals in the energy transition, used by the automotive industry to make batteries. Although electrification can help companies to meet net-zero emissions goals, lithium exploitation could generate severe environmental and health crises in the communities where deposits are located.
Vulcan Materials is claiming US$1.5 billion (US$32 billion) from the Mexican State for allegedly not complying with a mining concession in Playa del Carmen, Quintana Roo.
Mexico’s competitiveness and investment attractiveness regarding the mining sector are in free fall, not only due to political uncertainty but also due to an increase in insecurity. Although the government has announced that it is stepping up efforts to address some of the county's major problems, experts do not believe the panorama will improve any time soon.
The Ministry of Environment and Natural Resources (SEMARNAT) backed the protests of inhabitants from Temixco, Morelos against the open-pit mining projects Esperanza I and II of Esperanza Silver, the Mexican subsidiary of the Canadian Zacatecas Silver. The environmental ministry has recently also acted against other open-pit mining projects.
In 1Q22, leading Mexican gold miners saw their production slump compared to the past year. The 12 main producers showed a combined output of 714,199oz, an 11.8 percent drop compared to the 809,735oz produced by 11 companies in 1Q21. Seven out of the 12 corporations registered lower output in their Mexican operations, 4 posted an increase and 1 reported stable production.
Tocvan Ventures signed an assignment agreement to sell its Canadian Rogers Creek project to focus on the development of its Mexican operations, which have shown significant growth in recent years.
Grupo México has reached a series of agreements with the National Mining Union of the Confederation of Mexican Workers (CTM) for the payment of profit sharing (PTU). However, there are still disagreements with workers who, due to the outsourcing reform in 2021, lost out on profits. Consequently, the company is trying to negotiate with them to avoid strikes.
First Majestic Silver announced its 1Q22 operating and financial results, showing that the company was able to deliver a strong quarter despite encountering many challenges. Additionally, First Majestic announced its plans to deal with inflationary cost pressures and revealed its priorities for the remainder of 2022.