Mexico remains a hot destination for foreign miners

Mexico is seeing an influx of mining companies keen to prospect for new sources of precious metals.

The country’s rich gold and silver deposits are made even more attractive by its regulatory regime with the result that the value of its mining production rose to a record US$7.2 billion in 2007, compared with US$2.3 billion in 2002.

According to Mexico’s economy minister Eduardo Sojo Garza-Aldape, changes to Mexican legislation in the 1990s that allowed foreign companies to own 100% of mining operations are continuing to attract investment.

However, a group of Canadian mining companies operating in the country are seeking ways to further improve the permitting and regulatory processes.

Vancouver-based Goldcorp Inc is among the largest of the foreign companies operating in Mexico; it has three operating mines in the country, and two development projects.

The latter includes the US$1.5 billion Peñasquito project, which the company expects to produce 400,000 ounces of gold per year. It will also yield silver, zinc and lead.

The project has attained key milestones on its way towards start-up; the Pabellon-Salaverna road, which provides new and improved access for equipment and materials deliveries, was opened to the public in September of last year.

Construction of the crusher installations, oxide conveyor, leach pad, Merrill Crowe facility and mill foundation remain on schedule and Goldcorp expects first production from the mine in 2008, with the mill start-up following on in 2009.