Only Eight Companies Produce 88 Percent of Mexico's GoldBy Fernando Mares | Tue, 04/19/2022 - 19:47
According to a report from the Ministry of Economy dated Sept. 13, 2021, just eight companies carry out 88 percent of Mexico’s gold production. Similar trends where a handful of companies dominate the market can be observed in the production of silver, copper and zinc.
The document reports that national gold production totaled 2.5Moz in 2020, of which 2.2Moz, or 88 percent, were produced by eight companies, mostly originating from the US and Canada. These companies are the US’ Newton Gold Corp. and Coeur Mining, as well as Torex Gold, Agnico Eagle Mines, Alamos Gold, Pan American Silver and First Majestic Silver from Canada. The only Mexican player is Francisco, a subsidiary of Grupo Peñoles.
By itself, Newmont produced 20 percent of the national gold production. The US Company produced over 50,000oz of the mineral at its Peñasquito project.
Regarding mexico’s states, Sonora and Zacatecas lead in gold production. Sonora is the first producer with over 30 percent, followed by Zacatecas with 19 percent. Other important producers are Chihuahua, with 16 percent, followed by Guerrero and Durango, both with 14 percent.
For silver, Mexico’s production totaled over 134Moz. Like gold, 78 percent of this production was done by seven companies, producing over 105Moz. These seven companies are Newmont Gold Corp, Fresnillo, Industrias Peñoles, Pan American Silver, First Majestic Silver, Coeur Mining and Fortuna Silver.
Zacatecas stands out as the initial silver producer, representing around 39 percent of the national production. The state is followed by Chihuahua with 24 percent, Durango with 13 percent, Sonora with 7 percent and Oaxaca with 4 percent.
Mexican companies are mainly involved in copper production: over 5,000 tonnes were produced in the country, with Grupo Mexico alone producing around 450,000 tonnes, which represents over 90 percent. Grupo Mexico is followed by Grupo Peñoles, Negociación Minera Santa María de la Paz, Capstone Mining, Sierra Metal, Gol Resources and Aura Minerals.
In 2020, 483 tonnes of zinc were produced, with Industrias Peñoles and Newmont as the main players, followed by Grupo Mexico, Gold Resource and the joint venture between the US-based Gatos Silver and the Japan-based Dowa Metals
Mining represented over 2 percent of the GDP in 2020, creating more than 300,000 direct jobs.