LATIN AMERICAN ROUNDUP — Explorers show interest in Mexico

More than 100 companies, mainly from Canada and to a lesser degree from the U.S., Japan and Australia, are showing an interest in Mexican mining projects.

This is largely due to changes in Mexican mining legislation over the past two years. Companies with foreign capital are extremely interested in projects, mainly for the mining of gold, silver, lead, zinc and copper. For example, several projects in Sonora, Durango, Chihuahua, Guerrero, Michoacan, Queretaro and the State of Mexico are in advanced stages of exploration. The brisk activity last year has motivated Mexican mining companies to improve operations and exploration techniques. In so doing, they hope to be able to compete efficiently with high rates of productivity from other countries. Since mining is, comparatively, a long-term activity, investments in exploration mature only after several or more years. Only those projects that are viable following three to seven years of study are capable of attracting serious investors.

The clear and simple regulations now in place for mining companies and investors render participation in the industry much easier than before, said Emilio Lozoya Thalmann, Mexico’s mines minister. He emphasized that geological data obtained over 40 years by the Mineral Resources Board are available to exploration companies.

— from the Mexican Investment Board.