Zacatecas to Boost Capabilities of Local Suppliers

The government of Zacatecas said it aims to link local suppliers with major players in the different industries established in the state. The plan is intended to improve economic conditions for micro, small and medium-sized enterprises (MIPYMES) to boost their participation in the state’s value chain. 

The governor of Zacatecas, David Monreal, acknowledged the mining, agriculture, industrial and tourism sectors as the backbone of the state’s economy and promised further support, including through the local supplier program.

With the program, local MIPYMES gain support mechanisms provided by Zacatecas’ Ministry of Economy and the private sector to help them meet the purchase requirements of more prominent companies, which will boost sales. According to Zacatecas’ government, this program is unique in Latin America since the local government is now not just a regulator but is a proactive, binding and strategic player in the economy. “In 11 months of government, we negotiated agreements for the development and integration of local suppliers with major companies from the key economic sectors in the state. Just the agreement reached with Newmont Gold Corp. represents a link of 257 suppliers, which resulted in an investment in local content of over US$47 million,” said the local Minister of Economy, Rodrigo Castañeda. 

On May 5, 2022, the government of Zacatecas, the Zacatecas Mining Cluster and Minera Peñasquito, a subsidiary of Newmont signed a collaboration agreement to boost the potential of local suppliers. The government considered this agreement of great importance since mining represents over 11 percent of the state’s GDP and has a gross production equivalent to other industries’ total. “These are encouraging numbers and show the high grade of specialization of mining in our state. For this reason and by order of Governor Monreal, we design strategies to transform mining and other economic activities into a harmonic and inclusive development,” Castañeda said. 

Abel Martínez, Director General, Newmont Mexico, considered this agreement as key to boosting the capabilities of local suppliers since it will allow them to obtain training on the company’s requirements. 

According to the National Institute of Statistics and Geography (INEGI), Zacatecas is Mexico’s largest producer of silver, lead and zinc, as well as the second largest producer of gold and copper. The state hosts 35.8 percent of the national silver production, as well as 18.7 percent of gold, 62.8 percent of lead, 47.9 percent of zinc and 9.2 percent of copper. The state also has Mexico’s largest gold mine: Peñasquito, property of Newmont.