Peñoles is the Tenth Most Ethical Company in MexicoBy Paloma Duran | Thu, 09/23/2021 - 17:06
Peñoles is among the Top Ten most ethical companies in Mexico. Grupo México and Hudbay Minerals are among the final bidders to acquire Matsa mine. In addition, Sonoro Gold Corp has completed the announced PEA on Cerro Caliche and numbers are looking bright.
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In 2020, Peñoles ranked tenth among the most ethical companies in Mexico in the AMITAI ranking. Last year, the company ranked eleventh and thanks to the implementation of new guidelines that seek to enhance the company's performance while seeking to improve its relationships with employers, suppliers, investors and communities, it was able to move up one slot. Rafael Rebollar, Director of Peñoles, said this new ranking was achieved thanks to its social impact strategy, which has a greater emphasis with the connection with the communities. "We seek to improve the quality of life in our communities." Currently, Peñoles is the only mining company that has been able to enter the ranking and it hopes to continue improving its position.
Grupo México and Canada's Hudbay Minerals Inc. are among the final bidders competing to acquire the Spanish copper mine Minas de Aguas Teñidas (Matsa) from Grupo Trafigura, which is the largest mine in Spain. Both companies made biding offers that range from US$1.5 billion to US$2 billion. Hudbay is currently working with Ontario Teachers' Pension Plan, which would provide funds to acquire the mine, while Grupo México plans to buy the mine through its publicly traded mining unit Southern Copper. Currently, Grupo México is considered the strongest bidder, sources told Bloomberg.
Sonoro Gold has completed the Preliminary Economic Assessment with very promising results. The open-pit heap leach operation at Cerro Caliche is expected to yield an average 45,700 gold-equivalent ounces per year over a seven-year period, the current estimated mine-life, corresponding to a total of 323,500 gold-equivalent ounces. The assessment further revealed that during the first three years of life, the mine would produce an annual total of 56,500 gold-equivalent ounces. Forecasted cash costs are US$1,227 per g-e ounce. Cerro Caliche is currently not wholly owned by the company.
An initiative to reform the Federal Law of Rights in order to reactivate the Mining Fund has been more than 120 mining communities would benefit as mining companies would drive their development directly to them. Varela explained that he presented the initiative because Federation's Expenditure Budget did not increase the budget for Zacatecas. "It is now more important than ever that Zacatecas and its municipalities obtain that extra resource to be able to carry out the works," said Varela.
Mexican authorities have said that although the granting of mining concessions has stopped, permits however have not. The process has become more difficult as the pandemic delayed several projects and there are now higher standards that mining companies must meet to ensure that their projects do not harm the environment and communities.
Tonatiuh Herrera, Deputy Minister of the Environment explained it is up to SEMANRNAT to fix the backlog of evaluations, but emphasized that it is the miner´s responsibility to present responsible projects. Miners must not only comply with environmental regulations, but also consult with communities before starting their projects. “My last recommendation is: do not look for shortcuts. Comply with all social and environmental obligations.”