SEMARNAT Approves Key Environmental Permit for Media Luna

Torex Gold has announced that the Ministry of the Environment and Natural Resources (SEMARNAT) has approved its environmental permit (MIA Integral) for the Media Luna project in Guerrero. The company has also received approval to increase the power draw at its Mexican assets and expects to increase it further to sustain full production at Media Luna.

The approval of the MIA Integral will allow the company to start operations at Media Luna once the mine is built, and builds on the MIA Modification in 2021, which allowed development activities to be carried out in the south section of the Balsas River. The company explained that in addition to seeking to develop and operate Media Luna, it is also analyzing the future deposition of tailings and the expansion of exploration activities.

“The receipt of the MIA Integral represents another key milestone in the de-risking of the Media Luna Project and further demonstrates the ongoing support of local communities and the endorsement of state and federal governments of both the social and environmental facets of this project. With the MIA Integral in hand, the company now has all the environmental approvals required to develop and operate Media Luna,” Jody Kuzenko, President and CEO of Torex Gold, said in a press release.

Moreover, Torex announced it has received approval to increase the power draw to 45MW to boost activities at both its El Limón Guajes (ELG) and Media Luna projects. The company highlighted it is in discussion with authorities to increase the power draw to 65MW, which is required for full-scale production at Media Luna. 

Kuzenko previously told MBN that although the permitting process in Mexico has been more challenging due in large part to the COVID-19 pandemic, the company was confident that its permit would transition smoothly. “Some of the stories surrounding delays in permitting are true. A reduction in SEMARNAT’s staff and a global health pandemic are not conducive to fast permitting. Nevertheless, a company’s reputation, as well as the scale, environmental impact and social approach of a project and the quality of the application are crucial. Torex is in a great position regarding all these elements. Our approach with SEMARNAT and CONAGUA has been positive and we look forward to working constructively with them as the project develops.”

Torex is the second-largest gold producer in the country and owns 29,000ha at the Morelos Gold Property in the Guerrero Gold Belt. Its assets include the ELG, which began commercial production in 2016, and the Media Luna deposit, currently in an advanced stage of development. The company has significant opportunities in Mexico, having only explored 25 percent of its highly prospective Morelos property.

In a previous press release, Torex reported that with the Media Luna development, the company has entered a new stage in relation to its operational capabilities, with its mine life more than tripled. Torex explained that with increased investments in exploration, development of Media Luna is ideal because of the high potential to enhance the overall return of the project and extend the overall mine life beyond what is implied by current reserves.

The company added that it sees an opportunity to improve the overall performance of the Media Luna project by filling the mill after 2027 and extending the mine’s life. Torex also announced that its exploration plan will focus on unlocking the property's resource potential to create a multidecade operation.

In addition, Torex announced that thanks to the Media Luna project, it will diversify its metal production to include copper, which it sees as a great opportunity considering the current market environment for this resource. The company expects 20 percent of the Morelos complex's total revenue to come from copper, a figure that could grow over time. The company told MBN that it is beneficial to move slightly outside of the gold market, where companies are somewhat forced to be price-takers.

“We are excited about becoming a copper producer," Kuzenko emphasized. "In this industry, given the fluctuations in demand and prices of metal, production diversification and market exposure to different commodities is a very positive thing.  And I am quite bullish on the copper market.”