MINING IN MEXICO — Value of mining output rises slightly in

The value of Mexico’s mining output in 1992 reached US$2.5 billion, a gain of 1.1% from the previous year.

The precious metals group (gold and silver) accounted for 16% of the total value of production. The non-ferrous industrial metals group (mainly copper, zinc and lead) accounted for 47%. Iron ore accounted for 21%, and non-metallic minerals (mainly sulphur, salt, fluorite, silica and gypsum) for 16%.

The mining trade balance last year showed a surplus of US$507 million, with exports valued at US$1.15 billion.

Mexico has an abundance of mineral resources with some of its mines on a par with the world’s best. The country is a major producer of 20 important industrial minerals.

The country tops the production list in silver, celestite and sodium sulphate; ranks second in bismuth, cadmium and mercury; third in barite, graphite and antimony; fourth in arsenic and fluorite; sixth in lead and zinc; seventh in molybdenum; eighth in feldspar, sulphur, manganese and salt; ninth in gypsum; and tenth in copper.

Two semi-parallel mountain ranges run the length of Mexico from north to south, the Eastern Sierra Madre (1,350 km) and the Western Sierra Madre (1,250 km). In the centre of the country lies the continental massive known as the Mexican Central Plateau. Further to the south is the Balsas Depression. At the southern limits of the Central Plateau, the neo-volcanic Cordillera, about 910 km in length, crosses the country. In the southern part of Mexico is the mountain chain known as the Southern Sierra Madre (1,260 km). And the Californian Mountain Chain, with an average width of 75 km, runs the entire length of the Baja California Peninsula in Mexico’s northwest. Different reports estimate that only 20% of the country’s total area has been adequately explored. Geologically, it is estimated that two-thirds of the country’s territory is likely to contain important mineral deposits, especially in light of the new processing techniques and new minerals that are beginning to be quoted on international markets.

While mining is having difficult times globally, Mexico continues to receive its share of new investment. At the current rate, it is projected the country will meet the commitment of investing an equivalent of US$2.1 billion during a 5-year period. In the third year of this commitment, the equivalent of US$1.22 billion has been invested by Mexican mining companies to improve operations and exploration techniques.

The Mexican mining and metallurgical sector has for many years been accustomed to competing on the international market and has participated in projects and joint ventures with foreign companies. Because of that experience, the mining sector views the impending North American Free Trade Agreement with optimism and confidence.

— From the Mexican Investment Board, Mexico City.