Mining opportunities

An Expert's View about Sourcing in Mexico

Last updated: 19 Mar 2011

Mining is a key industry for Mexico and theworld. Mexico occupies first place in LatinAmerica and fourth place globally for investments in mining.

Sector briefing Mining opportunities in Mexico Why Mexico? Mining is a key industry for Mexico and the world. Mexico occupies first place in Latin America and fourth place globally for investments in mining. It is ranked second in the world for silver production and is among the top twelve countries in terms of the production of eighteen types of minerals. Mexico is a major supplier of metals including gold, silver, lead, zinc and iron ore. It is distinguished from other Latin American countries by the scale of its steel industry, which has attracted significant foreign investment. opportunities and an introduction to other relevant issues. A stable political environment and sound regulatory structure combined with Mexico's location adjacent to the US have attracted more than 200 foreign companies. Locally, the dominant players are Grupo Mexico and ?By 2012, mining GDP will Industrias Peñoles. In 2008, Industrias Peñoles exceed $45 billion USD? opened up an operation in the UK (Fresnillo Ltd) to support its listing on the London Stock Exchange. Find general information on Mexican market conditions on UKTI?s website. The Doing Business Guide for Mexico gives an overview of Mexico?s economy, business culture, potential UK Trade & Investment Sector briefing: Mining opportunities in Mexico one of fluorite. This places Mexico in the top Opportunities 10% of the largest deposits of its kind in the world. Mexico has a strong mining base in the country, balanced environmental policies In April 2008, the Ministry of the Economy and well tested mineral tenure laws. In stated that investment in Mexican mining addition, a reasonable infrastructure is in place would rise 54% to $3.3 billion USD, driven by including a trained/skilled workforce. higher metals prices and greater exploration. According to the 2009 edition of ?Ranking of The Federal Government estimates that total countries for Mining Investment? by BEHRE mining investment over six years could reach DOLBEAR, Mexico is fifth worldwide in terms of $24 billion USD. Large new investments would lowest risks for mining investment after Canada also include $2.2 billion USD on mine projects , Australia, Chile and United States. by Goldcorp of Canada, including the $1.49 A high portion of Mexico?s mineral output is billion YSD Peasquito project. The Jinchuan produced by a few large domestic companies. Group of China was also expected to invest Many industrial minerals, however, are $612 million USD to develop a large copper- produced by medium and small-sized zinc deposit, acquired from Canada's Tyler companies. Resources. Investment during 2008 was $1.9 billion USD, The main areas of opportunity for Mining which exceeds the $1.27 billion USD reported companies are: to the Mexican Chamber of Mining (CAMIMEX). Of the amount reported to CAMIMEX; ? Exploration ? 40% was for new projects ? Development ? 25% was for equipment ? 15% was for exploration ? Production ? 14% was for capacity expansion 6% was for other activities In 2008 new mines began operations and more DEVELOPMENT than 500 exploration projects were listed. In 19 September 2008, investment in the mining 2.91% sector was $2,720 million USD. This amount EXPLORATION represents 82% of the estimated investment 574 ON HOLD for the whole year. The total estimated 88.04% 3 investment projected for Mexico from 2007 to 0.46% 2012 is approximately around $15,000 million USD. PRODUCTION Industry Forecaster, BMI, expects the Mexican 56 mining industry to grow at an average annual 8.59% rate of 3.2% between 2008 and 2012, lagging a little behind the economy as a whole, which is projected to grow by 3.6%. By 2012, the mining GDP will exceed $45 billion USD. Mexico Areas of Investment is a country with a rich mining history and is The main opportunities for providers of listed amongst the world?s largest metal the Mining sector in Mexico producers. Mexico also has major mineral exploration. Although best known for its 1) Robotics and Excavators production of silver, (more than ten billion Due to technological advances, mining ounces have been produced to date) the companies in Mexico are requesting hi-tech country also mines significant quantities of equipment. Robotics and underground copper, gold, lead and zinc. excavators present a growing demand within the mining companies located in Mexico. Mexico has eleven giant deposits of silver, three of copper, two of molybdenum, five 2) Digitalisation and Satellites of zinc, one of lead, one of manganese and UK Trade & Investment Sector briefing: Mining opportunities in Mexico Storage, analysis and interpretation of began at the beginning of 2009 and is information are very important for mining expected to be completed by 2010. This companies. Software developments as well as Division may provide further opportunities for IT companies are requested by mining UK companies in mining and infrastructure companies operating in Mexico to develop sectors. software tailored to them. Satellite images are widely used by companies in Mexico in order to Grupo Mexico is developing its manufacturing detect ore reserves. Software and satellite capabilities and is processing 15% of the image providers for the mining industry will copper extracted. It is transformed into find in Mexico a growing market. cathode production used for the construction industry and other industrial processes. 3) Biotech Copper manufacturing systems, equipment and recycling systems are The bioleaching process is now used in Mexico business opportunities for UK companies. in order to extract the specific metals (gold and copper) from the ore. Companies with The following projects also offer attractive experience and equipment have business business opportunities: opportunities in Mexico. 1) Wastewater treatment plan 4) Safety for Coal Mines 2) Dust and Sanitary sewer plant 3) Steam generation obtained from Security systems, certification and safety production process equipment for coal mines are also required in 4) Trucks and Excavators simulators the Mexican market. 5) New Calcium Oxide Plant 5) Environment Industrias Peñoles Companies providing the following services and Peñoles is another of the largest mining groups technology can find business opportunities in in Mexico, with integrated operations in Mexico applied to the mining sector. smelting and refining non-ferrous metals and producing chemicals. Peñoles is the world?s ? Reforestation top producer of refined silver, metallic bismuth ? Water management and sodium sulphate, and the leading Latin ? Environment audits and certification American producer of refined gold, lead and ? Gas Emission and residual management zinc. 6) Alternative reactive for the Gold In partnership with Bayer MaterialScience, Production Process NanoHorizons and BYK, Peñoles is integrating nanotechnology process and diversifying their The most common reactive for gold and silver products. Companies that provide extraction (lixiviation) is cyanide, which technology and process systems for requires very strict controls for handling and nanotechnology applied to silver can find destruction. Nowadays it is safe because of business opportunities with Peñoles in technology, but research for alternatives is Mexico. being conducted in different Mexican universities, sponsored by many enterprises. Minera Autlán Largest Mexican Mining operators: These Autlán is one of the major mining industries in companies offer potential business Mexico. Up to September 2008 they had opportunities for UK companies. invested $29.7 million USD, of which $4.7 million USD had been earmarked for Grupo México maintenance operations. Autlan is implementing modernisation for exploration The Engineering and Construction Division of and in its research and development area. Grupo México won a CFE public bid worth Minera Autlán is the only provider in North $56.9 million USD to build two deviation America with proven reserves for the next 30 tunnels on the Grijalva River that will help years. Further opportunities may exist for UK prevent natural disasters in the region. Work companies in their operations. UK Trade & Investment Sector briefing: Mining opportunities in Mexico If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website. UK Trade & Investment Sector briefing: Mining opportunities in Mexico Major events and activities UKTI contacts Every year a number of mining events are held Jonathan Clare in Mexico. Cámara Minera de México Trade and Investment Consul (CAMIMEX) is the company that organises British Consulate, Monterrey these events. Tel. +52 (81) 8356 5359 Fax +52 (55) 8356 5379 Some relevant events taking place during 2011 Email: are: Conferencia Internacional de Minería Luis Dario Ochoa (International Mining Conference) Trade and Investment Office Place: TBC British Consulate, Monterrey Tel. +52 (81) 8356 5359 Email: Fax +52 (55) 8356 5379 Time: TBC Email: Telephone: +52 55 52 60 2244 (association) Seminario Minero Internacional Email: Time: TBC Telephone: +52 55 52 60 2244 (association) Convencion Internacional de Mineria (International Mining Convention) Time: 26-29 October 2011 Contact: Irene Gutierrez E. Telephone: +52 55 5148 7528 Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Mining opportunities in Mexico Next steps - ? Arranging appointments How UKTI can help ? Organise seminars or other events for you to meet contacts and promote your British companies wishing to develop their company in the Mexican market business in the Mexican market are advised to undertake as much market research and This work is available via our Overseas Market planning as possible in the UK. UKTI?s team in Introduction Service (OMIS) a chargeable Mexico, with its wide local knowledge and service which assists British-based companies experience, can provide a range of services to wishing to enter or expand their business in British-based companies wishing to grow their overseas markets. business in global markets. To find out more about commissioning this This can include: work, or accessing other UKTI services and ? Provision of market information specialist advice, please visit the UKTI website ? Validated lists of agents/distributors to find contact details for your local UKTI ? Key market players or potential office. customers in the Mexican market ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Mining opportunities in Mexico
Posted: 19 March 2011, last updated 19 March 2011

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