SGM to Study Potential Coal Deposits in Mexico
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SGM to Study Potential Coal Deposits in Mexico

Photo by:   Adriano Ruíz
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Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Thu, 08/18/2022 - 17:44

Since coal represents 10 percent of state electric utility’s CFE energy supply, the Mexican government launched a program to ensure the mineral’s supply by looking for more coal deposits and updating the reserves.

On Oct. 19, 2022, the federal government suggested studies should be conducted to identify potential coal deposits in the country aiming to update the mineral reserve information as well as exploiting the resource. The study would be conducted by the Mexican Geological Survey (SGM) through its Direction for Energy Minerals.

According to El Universal, the project is called the Coal and Alternative Energies Investment Project 2022-2023, which is currently determining the economic and technical feasibility of over 63 mining projects. The project has a budget of over US$449 million for 2022, which will be used to identify prospective areas that may hold important coal reserves and update the currently available geological information. The document highlights that because of CFE’s request, SGM must report the quantity and quality of the mineral found. 

The goal for this and the following year is to continue to register the geology of major producing regions like Coahuila, Nuevo Leon, Tamaulipas and Sonora, as well as the Fuentes-Rio Escondido and Colombia-San Ignacio regions, which according to SGM produce more than 95 percent of the coal in the country. The project will also focus on potential producing states like Puebla, Michoacan, Hidalgo, Jalisco and Veracruz.

Coal mines have been under scrutiny due to their lacking security measures, which led to the collapse of a mine deposit in Sabinas, Coahuila on Aug. 3, 2022, where 10 workers remain trapped. CFE has been pointed out as partially responsible, since it purchases over 99 percent of the region’s coal for its coal-fired power plants, with some showing concerns regarding the transparency of the purchase process. In addition, environmental organizations argue that although that coal represents just 10 percent of the energy supply of Mexico, it is responsible for 25 percent of the grid’s greenhouse gas emissions. 

Nonetheless, coal is still being a key mineral for the Mexican industry. SGM said it is crucial to develop attractive coal projects to foster investment in the sector because of the resource’s strategic importance. Apart from CFE, other major coal consumers are Altos Hornos de México, ArcelorMittal, Minera Autlán, Posco, Deacero, Gerdau Corsa, Tenaris, Ternium and Minera del Norte, among others.
 

Photo by:   Adriano Ruíz

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