After President López Obrador criticized the Federal Economic Competition Commission (COFECE) for authorizing the acquisition of the Sonora lithium deposit by Chinese company Ganfeng Lithium, COFECE replied that the purchase did not represent any risk to competitors or consumers. In addition, the commission explained that the country's laws allow national and international investments, for which Ganfeng Lithium had the right to request an acquisition.
However, López Obrador criticized COFECE for having more powers than him and be able to deliver national goods to foreign companies. In addition, López Obrador said that the US reproached the Mexican authorities for this purchase because China is considered the US´ biggest commercial competition. In reference to this, López Obrador said he wishes not to enter into conflicts and that these permits must be reviewed thoroughly and avoid any misunderstandings.
Ready for more? This is your weekly roundup!
Mexico’s government has made modifications to its controversial constitutional electric reform proposal, currently under discussion in Congress. The main revision is that the government no longer seeks to have exclusive control of minerals by removing previously granted concessions, said Minister of Energy, Rocío Nahle.
In 2021, inflation in the mining sector reached its highest point in six years fueled by higher oil prices. Rising inflation set off an increase in various mining, logistics and commodities’ costs, leading projects to be put on hold until the market outlook improves. Experts say inflation will remain a major challenge in 2022, as the pandemic wreaks havoc.
In 2021, Grupo México achieved its highest profits mainly due to its mining operations and higher copper market prices. The company said that since the outlook for 2022 is optimistic, it will significantly increase its investment to further develop its projects.
Fresnillo announced it has reduced its gold and silver production projections for 2022 following a greater-than-expected impact of the Omicron COVID-19 variant on mining operations. The company said that even though production is not expected to increase, it has taken action to address these challenges.
Sonoro Gold expects to have a promising year ahead, especially since the company achieved important milestones in 2021, such as completing its PEA with authorities, initiated its 10,000m drilling program and securing new financing. The company reported the completion of its US$3 million private placement is a major achievement.