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Mexico is gold and silver to Canada

Mexico is gold and silver to Canada

Posted by Ricardo Vázquez on June 10, 2014

It’s not about a sports championship. Canada is an strategic ally for Mexico in the mining sector, it contributes a little more than three fourths of the total foreign investment on the field, and its mines stand out among the principal producers of of precious metals of the country.

The mining sector in Mexico has increased its investment in an extraordinary form in the last six years, establishing historical records.  It is said that Mexico lives in a new mining fever, supported in a good measure by the participation of Direct Foreign Investment in which the presence of Canadian companies excel in comparison to other countries’.

For example, three fourths of all the foreign companies that are exploring in Mexico, are in the Canadian stock market. This is shown in the fact that from the 286 companies of the mining and metals sector, 210 have Canadian capitals and operate in more than 805 projects in Mexican territory, according to the Secretary of Economy.

The commercial consul of the Consulate of Canada in Guadalajara, Francis Uy, indicated that Canadian mining companies invested 5,000 millions of dollars in Mexico in the last five years, which generated 20,000 direct, and 100,000 indirect jobs.

Another interesting fact is that in 2012, in particular, Mexico received almost 600 millions of dollars of foreign direct investment in the mining sector, where 8 of every 10 dollars where Canadian capital.

As part of this, considering that Mexico was the world leader producer of silver since 2010, until 2013, according to the Silver institute,  Canadian mines are leaders in the production of precious metals.

The mine Fresnillo is the biggest silver mine in the world, and it belongs to the Peñoles Group, firm of Mexican capital. However, according to the Institute of Silver and its World wide study of Silver in 2013, the increase in the production in Mexico of the metal said in recent years, was due mainly to the upturn in the production of silver of the Peñasquito mine, from the canadian Goldcorp, whose production increased by 30%.

Almost 42% of the production of silver in Mexico is originated in the state of Zacatecas, where GOldcorp, with its headquarters in Vancouver, owns most of the Peñasquito mine, the second silver mine in the country and one of the biggest silver deposits in the world with tested, and testable reserves of over 960Moz.

The Mining Chamber of Mexico validated the fact that Fresnillo and Peñasquito, both located in Zacastecas, are the first and second mins in silver production in Mexico.

In respect to gold, Mexico is inside the World’s Top Ten in production, and its position is number 9. Here, the mining company Goldcorp stands out because since march of 2010, after an investment of 1,700 millions of dollars, they inaugurated the Peñasquito mine, which from that moment on, became the main gold producer in the country.

According to the Secretary of Economy, the Peñasquito mine, will allow the production of gold and silver to increase up to a 40%. In fact, Mexican authorities think that it will place the country into the five main producers of gold in the world, and it will allow it to maintain itself as the most important producer of silver.

There is no doubt that this mine is itself a jewel, because it is also the number one producer of Zinc and Plumb in Mexico.

Los Filos, is the second most important gold producing mine in Mexico, it also belongs to Goldcorp, which is located in the state of Guerrero.

Because of all of this, Mexico is still a beta in Canadian investment in the mining sector. 

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