Zacatecas Further Promotes Micro to Medium-sized Enterprises

The government of Zacatecas signed an investment agreement with the company Capstone Copper to promote the development of micro, small and medium-sized enterprises (MSMEs) and local suppliers.

The agreement was signed by Zacatecas’ Minister of Economy, Rodrigo Castañeda Miranda, in representation of Governor David Monreal Ávila, on the second day of the Prospectors & Developers Association of Canada (PDAC) convention.

For Zacatecas, the mining sector is an important ally that positions the state as an important investment destination, which consequently helps drive social and economic development. "Zacatecas is a national and global leader in mining, so it is essential to strengthen ties with companies and seek the consolidation of value chains for a sustainable and responsible industry," said Castañeda.

During its work tour in Canada, the Government of Zacatecas is working to link and promote the development of local suppliers as a strategic public policy. Castañeda emphasized that the government considers PDAC to be the best convention for promoting development opportunities in Zacatecas and attracting investment due to the event’s wide reach.

According to the latest numbers published by the National Institute of Statistics and Geography (INEGI), Zacatecas remains the largest Mexican producer of silver, lead and zinc, and the second largest in gold and copper production. The entity has a monthly average silver production of 194.19 t. Currently, Zacatecas 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.

Previously, the Ministry of Economy of Zacatecas announced that other agreements were reached during the PDAC. Orla Mining will invest US$100 million in its Camino Rojo project, for example. The agreement establishes that small SMEs will supply products and services for the mining development of the mine. In addition, Pan American Silver will invest MX$400 million (US$21.7 million) to drive the development of SMEs in the state.

In 2021, Capstone Mining and the Chile-based Mantos Copper announced a merger to create a new copper company called Capstone Copper, which would focus on high-quality assets. Capstone Copper's projects include Pinto Valley in the US, Cozamin in Mexico, as well as Mantos Blancos, Mantoverde and Santo Domingo in Chile. The company is expected to become a copper giant in the region, driven by the heightened relevance of copper as an important metal for the global energy transition.

In 2022, Capstone's consolidated copper production was 136,300t. For 2023, the company's production guidance is 170,000-190,000oz, of which about 23,000-25,000oz will come from Cozamin. Capstone noted that some expected milestones that will make 2023 a promising year are the Cozamin mine's 43-101 technical report update and its ESG strategy, both due in 1Q23.