Mexican mining investment estimated at US$470 million

An estimated US$470 million will be invested this year on mining projects in Mexico.

Of that amount, US$350 million will be spent on nine new operations, with US$120 million earmarked for 139 exploration plays.

Carlos Garcia, deputy-secretary for Mexico’s mines ministry, released the figures at a recent seminar, noting that the current trend among foreign investors is to enter ventures with Mexican companies rather than pursue projects independently.

“Foreign capital is growing, but I doubt it is currently more than 15% of total investment in the mining industry,” he said.

Northwestern Mexico, especially Sonora state, has been the centre of foreign interest.

Production is expected to grow 5% in 1994 — faster than usual, not only for mining but for the economy as a whole.

Eduardo Rodriguez Luna, the government’s director of mining promotion, said real mining output is expected to grow 2.8-3.8% annually and that private investment will reach 500 million neuvo pesos annually toward the end of the century.

“One of the challenges in mining is to afford the investor access to greater technical information on the country’s geological potential,” he said. “Another challenge involves the deficiencies and backwardness in infrastructure.”

He added that the country’s highways require improvement and that the mining industry requires better road, rail and port services.

While North America is Mexico’s natural market in the short and medium terms, he said, the Pacific Rim will be dominant in the long term.