Sinaloa: A Mining Investment Opportunity
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Location, human capital and current investments make the state of Sinaloa the ideal place for additional mining industry transactions, reports Felipe Carlos Ibarra Retamoza, Sinaloa’s Undersecretary of Promotion and Economic Competitiveness during Mexico Mining Forum 2022.
Sinaloa has more than three million residents, representing 2.5 percent of Mexico´s population. Many of them are ready to join the working taskforce that contributes to the development of mining projects across the state. Sinaloa has a terrestrial surface of 57,377 km2, and more than 30 percent of this surface is considered to have mining potential, an important motivating factor for global companies looking for future projects, explained Retamoza.
“We agree with some of the stakeholders regarding Sinaloa as a state that can be we promoted in this industry. The Ministry of Economy has permanent communications with concession owners and this lets us know they are open and looking forward to receiving investments from companies with logistics in place,” said Retamoza.
Already, the state has 13 mining districts with more than 1,400 mining concessions. “Today we have 119 projects that have foreign capital. Investments from Canada, China, the US, Australia and Egypt stand out." In 2021, private investment in Sinaloa totaled approximately US$343 million in 2021, this reflects a positive environment and investment certainty for international investors. In addition, these investments had a notable impact on the state’s economy as employment increased by 20 percent and local communities greatly benefitted from investments mining companies are continuously making in their project areas, explained Retamoza.
Investments in Sinaloa is expected to climb through increased connectivity between Topolobambo and Dallas, as there is currently a project being discussed between the governments of Sinaloa and Chihuahua for the creation of a commercial corridor that will run from Topolobambo through Choix, Ciudad Juarez and Dallas. This corridor will greatly increase the logistics of shipping materials to and from Canada, reported Retamoza.
“This connectivity places investors in a very good position since they see transportation potential for their minerals traveling through Mazatlan, Durango reaching Eastern US, not to mention individual ports dedicated to agro and minerals,” said Retamoza. There is also an expansion of the Topolobambo port being promoted by the Ministry to support imports and exports of minerals without a problem.
The Baluarte Bridge, though which travel from Maztlan to San Antonio, can be completed in 15 hours (1,346 km), is another logistical asset that benefits the state. In fact, the state’s transportation assets enable it to provide logistics solutions for neighboring states for shipping at lower costs. Sinaloa´s infrastructure include three international airports, 1,195 km of railroad tracks, and 11 dams. In addition, the state has two maritime ports that greatly benefit the mining community.
Retamoza explained that mining projects are backed by the state’s government and the Ministry of Economy. The ministry is already in talks with many investors and is currently reopening America Gold and Silver, which opened in December and is in talks with the collective bargaining agreement.
“There are opportunities and if we combine the investment and the reinvestment that existing companies are making in the state with new investors, there is a strong mining potential in the state,” said Retamoza.