Negocios ProMéxico

special feature The Latest Intel on Mexico’s Booming IT Industry

Mexico’s Mining Industry Worth Its Weight in Gold

III II --2013 2012

2nd MEXICO INFRASTRUCTURE SUMMIT February 6-7, 2013 -Camino Real Polanco, Mexico City

www.mexicoinfrastructuresummit.com New government plans and regulatory framework for the development of new energy, social, transport and water infrastructure projects in Mexico.

Confirmed speakers include: César Barrios Executive Director FIDESUR

Emilio Rangel Woodyard Managing Director Servicios de Agua y Drenaje de Monterrey I.P.D

Manuel Rodríguez Arregui Managing Director GBM Infraestructura

Hugo Beteta Subregional Director ECLAC Mexico

For more Information contact us at events@bnamericas.com or call us (+562) 2941 0450 / (+562) 29410399

Media Partners Jesús Padilla Zenteno Chairman of the Board and General Manager Corredor Insurgentes

BNamericas.com

Contents.

The Lifestyle

February 2013 Cover Feature

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22

Vangtel

Arkus Nexus

24

photo courtesy of las alamandas

photo courtesy of agnico-eagle

The Lifestyle Briefs Page 50

48 Hours in...

Guadalajara Page 52

26

Torex Gold

34

Goldcorp

36

38

Korea Zinc

40

Mexichem

42

Yamana 44 18

Felipe Zúñiga Editor in Chief felipe@laboratorioeditorial.com

Malena López Design

Agnico-Eagle 46

A Brief History of...

The Veracruz Carnival Page 60

Interview

Mexico and the Bet on the Integration of Global Supply Chains Interview with Ernesto de Lucas Hopkins CEO of ProMéxico

12

Frida Escobedo An Architect Gone Public Page 62 photo archive

Special Feature The Latest Intel on Mexico’s Booming IT Industry

Enable

Exportadora de Sal 15

Laboratorio Editorial

Mexico According to...

Ana Claudia Talancón Page 66

Beatriz Morales The Infinite Possibilities of Creativity

60

photo courtesy of beatriz morales

Guest Opinion Five Lessons for Successful Internationalization

Business Tips Mexico: A Virtual Success Story

Natalia Herrero Suzette Celaya Copy Editing

Mexico’s Partner Nearsoft

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Miguel Ángel Samayoa Advertising and Suscriptions negocios@promexico.gob.mx

Paola Valencia The Lifestyle Editor

Briefs 5

Mexico in the World Canada and Mexico: A Business Relationship with Great Potential

Sebastián Escalante Director of Publications and Content sebastian.escalante@promexico.gob.mx

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Ernesto de Lucas Hopkins ceo

Five Heavenly Beach Destinations in Mexico

Worth Its Weight in Gold

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The Complete Guide to the Mexican Way of Life

From Turquoise To Emerald

Mexico’s Mining Industry

From the CEO

ProMéxico

Graeme Stewart Proofreading CM Idiomas Alison Stewart Translation This is an editorial project for ProMéxico

by Laboratorio Editorial, S.A. de C.V. Download the PDF version and read the interactive edition of Negocios ProMéxico at: negocios.promexico.gob.mx This publication is not for sale. Its sale and commercial distribution are forbidden.

Negocios ProMéxico es una publicación mensual editada en inglés por ProMéxico, Camino a Santa Teresa número 1679, colonia Jardines del Pedregal, Delegación Álvaro Obregón, C.P. 01900, México, D.F. Teléfono: (52) 55 54477000. Página Web: www.promexico.gob.mx. Correo electrónico: negocios@promexico.gob.mx Editor responsable: Gabriel Sebastián Escalante Bañuelos. Reserva de derechos al uso exclusivo No. 04-2009-012714564800-102. Licitud de título: 14459. Licitud de contenido: 12032, ambos otorgados por la Comisión Calificadora de Publicaciones y Revistas Ilustradas de la Secretaría de Gobernación. ISSN: 2007-1795.

Negocios ProMéxico año 6, número II, febrero 2013, se terminó de imprimir el 31 de enero de 2013, con un tiraje de 13,000 ejemplares. Impresa por Cía. Impresora El Universal, S.A. de C.V. Las opiniones expresadas por los autores no reflejan necesariamente la postura del editor de la publicación. Queda estrictamente prohibida la reproducción total o parcial de los contenidos e imágenes de la publicación, sin previa autorización de ProMéxico. Publicación Gratuita. Prohibida su venta y distribución comercial.

ProMéxico is not responsible for inaccurate information or omissions that might exist in the information provided by the participant companies nor of their economic solvency. The institution might or might not agree with an author’s statements; therefore the responsibility of each text falls on the writers, not on the institution, except when it states otherwise. Although this magazine verifies all the information printed on its pages, it will not accept responsibility derived from any omissions, inaccuracies or mistakes. February 2013.

Briefs

from the CEO.

Mexico is a competitive destination for mining investment. An industry with a century-old tradition, mining remains one of the leading sources of income, employment and development in the country. But beyond the mineral wealth required to develop this activity, conditions in Mexico have made it one of the main destinations in the world for mining investment, surpassing countries that are richer in mineral resources.

Mexico offers stability and reliability for productive investment; a business climate that favors productivity; infrastructure and a legal framework that are ideal for international trade, and human talent that is unquestionably a success factor for any productive project.

In Mexico’s mining industry, the numbers speak for themselves. In recent years, the sector has recorded unprecedented investment, significantly increased its production capacity and secured a growing share in international markets for several minerals.

But the mining industry is not Mexico’s only source of pride. The country’s business climate also brings certainty to promising global market sectors, for example, information technology, where in a short period of time and thanks largely to Mexico’s human talent, the country is earning a spot among the leading developers and exporters.

While the mining and information technology industries may seem like complete opposites, in Mexico they share some rather crucial elements. A highly-skilled human capital, investor confidence, public policies and an ideal business climate are just some of the similarities that have favored the development of both industries and earned them a solid and increasingly stronger presence in international markets.

BUSINESS ENVIRONMENT

Mexico Creates National Entrepreneur Institute _____

Ernesto de Lucas Hopkins CEO ProMéxico

illustration archive

Welcome to Negocios!

On January 11, Mexican President Enrique Peña Nieto signed a decree to found the National Entrepreneur Institute (INADEM) to support the creation of new and improved micro, small and medium-sized businesses (SMBs) with a view to pushing Mexico towards a model of growth based on innovation, leveraging the momentum of exports and fostering the development of mechanisms to increase national content in exports.

This state-of-the-art public entity will work closely with entrepreneurs and SMBs to build a fertile scenario removed from excessive regulations and bureaucratic obstacles. The creation of the INADEM will benefit the domestic market by favoring the consolidation of production chains.

This specialized institute will focus on several areas, such as providing support to strategic sectors with

significant growth potential; creating jobs and having an added value participation in export chains; favoring regional development by furthering each state’s production vocation and existing competitive advantages; and providing special attention to entities with specific social and economic issues.

The INADEM will strengthen the financing ecosystem based on regional and sector priorities, ensuring business owners have access to funding. Also, it will promote a new culture between entrepreneurs and Mexican society, which will undoubtedly drive a public administration to a full-on business success. www.economia.gob.mx

Briefs

Briefs

AUTOMOTIVE

AUTOMOTIVE

Ford Drives Down the Fast Lane _____

Mexico and Argentina Restore Trade of Light Vehicles _____ photo courtesy of lafarge

The Mexican and Argentinean governments concluded negotiations of the Fourth Additional Protocol to Appendix I of the Economic Complementarity Agreement 55 (ACE 55), which will enable the trade of light vehicles between both countries to be restored based on the agreement reached between their respective automotive sector associations.

US auto maker Ford will invest 59.1 million usd to expand operations at its production plant in the state of Chihuahua. Resources will support engine production and block machining operations at the site. corporate.ford.com

The agreement entails an incremental temporary regime of tariff-free light vehicle exports for each country, aimed at achieving free trade by March 2015. With these negotiations, Mexico maintains trade preferences under ACE 55 and reverses the unilateral suspension decreed by Argentina in 2012. www.economia.gob.mx

CONSTRUCTION

photo archive

Mexico’s Automotive Sector Gains Support _____

RENEWABLE ENERGY

Enlightening Winds _____

www.lafarge.com / www.elementia.com

The Ministry of Economy (SE) filed a claim on January 10, 2013 with the Mexican Federal Commission for Regulatory Improvement (COFEMER) to withdraw the file for the draft amendment to the Decree in Support of the Competitiveness of the Terminal Automotive Industry and Support for the Development of the Domestic Car Market (published on December 31, 2003 and modified on November 30, 2009).

This action was carried out to give certainty to the sector and avoid establishing requirements that could hinder the entry of new manufacturers. Thus, Mexico will be established as a strategic player in the automotive sector. What is more, keeping the required production to access the benefits of the Decree at 50,000 vehicles will favor the entry of new investors. www.economia.gob.mx

Japanese investment group Mitsui & Co. will take a 50% ownership stake in the Mexican wind power generation facility Bii Stinu, currently under construction by a subsidiary of French energy developer EDF Energies Nouvelles. Mitsui specified the total cost of the project at approximately 400 million usd. www.mitsui.com

CHEMICAL

Clariant’s New Plant in Mexico _____ Swiss specialty chemicals producer Clariant opened a new production plant in the eastern state of Veracruz.

The 20 million usd facility is planned to produce chemical components for use in the manufacure of consumer goods such as skin creams, shampoos and home cleaning products. www.clariant.com

photo archive

AUTOMOTIVE

The transaction, which involves no cash and is subject to regulatory approvals, is expected to close in the second-half of 2013, pursuant to the start up of the new plant of Elementia.

The new joint-venture will be 47% held by Lafarge and 53% by Elementia.

photo courtesy of mitsui

photo courtesy of ford

French giant Lafarge has agreed with Elementia, a Mexican industrial conglomerate, to combine their cement assets in Mexico.Lafarge will contribute its two plants of Vito and Tula with a total capacity close to 1 million-ton while Elementia will contribute the new 1 million tons plant it is currently building in central Mexico.

photo archive

An Alliance Sealed with Cement _____

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Negocios ProMéxico 9

Five Lessons for Successful Internationalization The process of expanding a business internationally is a path that can follow many routes, whether winding or direct, through export, investment or acquisition of companies abroad. The operation of subsidiaries in other countries enables firms to diversify risk, generate income in other currencies, reduce costs and gain more experience in new business opportunities. ____

by alba zazueta gaxiola* photos archive

A

ccording to the World Investment Report (2012) by the United Nations Conference on Trade and Development (UNCTAD), in 2011 Mexican companies invested about 9 billion usd abroad. This placed Mexico as the country with the secondlargest outflow of foreign investment in Latin America, just behind Chile.

The food manufacturing, infrastructure and service industries are the sectors that have generated the largest number of international companies in Mexico. Some take their time to make the crossover and some are born global. This note draws on some of the strategies that the most successful Mexican companies have applied to break into the world market.

1. There is strength in numbers Approaching an unknown market can be daunting, which is why it is helpful to have a partner who knows the market and is willing to share the risk. An example of this strategy is the joint venture between General Electric (GE) and Mabe, signed in 1987. Since then, both companies share product lines and business strategies, which enabled the successful internationalization of Mabe and the mutual transfer of technology and innovation.

2. Innovate, innovate, innovate With specialization in its product line and strong vertical and horizontal integration, including the purchase and merger of foreign firms, Cementos Mexicanos (CEMEX) became a success story in the global industry. Based on its innovative and cutting-edge logistics strategies, use of information technology and a modernized service to clients, the firm made its processes more efficient, both in its own companies and in those it acquired, and has continuously improved its competitiveness.

3. Don’t hide your light under a bushel In 1999, Corona beer launched its “quality has no boundaries” campaign, which has helped to position the brand on the world market and to associate it with Mexico and its culture. This campaign stood out thanks to its emblematic presentation of Mexican elements at equally renowned global locations (such as the Great Wall of China) or using other national symbols (like the Canadian Mounted Police), while stressing the undeniable quality of the product. The effort to internationalize this brand began with exports to the US, Japan and several European countries in 1985. Currently, it is

distributed in over 170 countries and has established itself as the fourth most valuable beer brand in the world.

4. All publicity is good publicity Who would have guessed that bad publicity could bring benefits to a company?

Such was the case of the automaker Mastretta and its MXT sports car. In 2011, a British TV show called the first car to be 100% designed and manufactured in Mexico a product with a low level of competitiveness in the automotive industry.

Rather than causing rejection, these assertions aroused the curiosity of consumers and led to the vehicle winning recognition on the specialist automobile market worldwide. The MXT is an elite sports car that is distributed only upon request and has been sold in the US, UK, South Korea and France, among other countries.

5. Know your target Identifying potential customers and affinities with the productive capacity of companies is crucial to advance the internationalization process and effectively measure business opportunities. Some companies have had to adapt their products to enter new markets. In the late 1990s, the tortilla dough company Gruma made a full entry into the European market, positioning new bread products in a multicultural market. For that purpose, the group acquired a number of plants in Europe and Asia, indicating a growing international presence.

Other Mexican companies such as Kidzania, Cinépolis, Nemak, Bimbo, América Móvil, TRALCOM, Ingenieros Civiles Asociados (ICA) and Sushi-Itto are also clear examples of the corporate consolidation that has been implemented across the globe in recent years. These companies have shown that the capacity to adapt and innovate is key to surviving the process of natural selection in an increasingly globalized economy. Moreover, it sets the challenge of continuing the successful internationalization of Mexican companies and brands in order to achieve the consolidation of Mexico as a hub for development and growth. n *Economist from the Tecnológico de Monterrey (ITESM). Holds a Masters in Economics from the University of Essex, UK.

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Negocios ProMéxico 11

Canada and Mexico:

A Business Relationship with Great Potential Mexico and Canada are North American neighbors that share their borders with the world’s largest economy: the US. The potential between both countries needs to be further increased to benefit their inhabitants. The strengthening of commercial ties and an increased flow of productive investments speak to the importance of both nations in the North American community. ____ by josé antonio peral* illustration oldemar

T

rade between members of the North American Free Trade Agreement (NAFTA) has been restored to levels recorded before the crisis of late 2008. In 2011, Canada became Mexico’s third largest trade partner on a global level (sixth largest supplier and second largest buyer).

Trade between Mexico and Canada increased 178% between 2001 and 2011, going from 7.317 billion usd to 20.34 billion usd , an average annual growth rate of 11%. This trend must be sustained and furthered, considering the ties that have been built between the countries over time.

Bilateral relations between Mexico and Canada have become more solid. According to Industry Canada, trade between both countries reached 34.6 billion usd in 2011. Mexican exports to Canada have diversified significantly with an increase in, for example, computer items and electrical devices. Mexican imports of automotive products continue to occupy an important place in trade due to the significant intracompany flow of American assemblers.

The business potential is unlimited. Both countries are strategic partners and depend on their trade relations with the US; it is in their best interests, therefore, to expand their business by increasing their competitiveness within the NAFTA region and in other markets. According to preliminary statistics, in 2012 bilateral trade between Mexico and Canada reached 35 billion usd, the highest ever.

While Mexico will continue to be an important destination for Canadian mining companies, other sectors need to be considered. Mexico offers multiple investment opportunities in other strategic areas, such as the aerospace sector. In 2011 alone, Mexico became the sixth largest supplier of components to the US aerospace industry. Mexican engineering and design centers are manufacturing more sophisticated components in which design and knowledge development are extremely important.

In 2011, Canada was the sixth largest investor in Mexico on a global level. Between January 2000 and June 2012, Canadian direct investment in Mexico was 11.610 billion usd , making it the fourth largest investor in Mexico, only behind the US, Spain and the Netherlands. According to Mexico’s Ministry of Economy (SE), at the close of the first half of 2012, 3,059 companies with Canadian equity were operating in Mexico.

Mexico and Canada are important trade partners.

Both countries share a dynamic and prosperous relationship in the Americas, but also in the world. n *Trade Commissioner at ProMéxico’s Office in Toronto, Canada.

MEXICO'S TOP 10 BUSINESS STRENGTHS

9. Bright future. Mexico is set to become the leading economy in Latin America in the near future. According to The Economist, during 2011 the Mexican economy grew more rapidly than countries like Brazil, and will do so again in 2012. According to Goldman Sachs, Mexico will be the fifth largest economy in the world by 2050.

Analyses such as those carried out by Accenture state that Mexico will be one of the top six economies by 2025.

1. Location, location, location.

Mexico's privileged geographic location is impossible to emulate.

2. Strategic partner.

For Canada, Mexico is near shore; it is the closest and the most competitive country for doing business, creating important synergies that result in a more efficient participation in both NAFTA and other markets. It is the gateway to the growing and vast Latin American market.

8. Abundant and skilled workforce. Mexico has 112 million consumers with an average age of 26, of whom 47 million belong to a workforce that will reach 60 million by 2030. More than 115,000 engineers graduate every year. This number exceeds that of countries like Germany, Canada, the United Kingdom and Brazil.

7. Global manufacturing and logistics center. Mexico's competitiveness and the modernization of its infrastructure are crucial to becoming a successful market competitor, attracting more and more foreign companies.

3. Laws and openness.

Mexico is open to international business and has a legal framework that provides transparency, certainty and safety, the foundation to promote national and foreign investment.

4. Reforms. Mexico has shaped a decisive strategy of openness and support for key reforms that boost economic growth to more convincing levels. A few relevant examples are the labor reform and proposals to redefine the education, tax and energy sectors, among others.

10. Outstanding tourist destination. Mexico is a friendly country with a wide biodiversity and an enviably varied climate. It has more than 42,000 archaeological sites and 31 sites that have been declared World Heritage

by UNESCO. In 2012, more than 23 million tourists visited Mexico, of which only 1.6 million were from Canada.

5. Global champion in trade agreements. Mexico has 12 free trade agreements that provide it privileged access to 44 countries and 1.2 billion consumers. Together with Canada, Mexico is negotiating its participation in the Trans-Pacific Partnership (TPP), which will allow it to strengthen its strategic bilateral relations with Asia-Pacific.

6. Competitive costs.

According to KPMG, Mexico has an average cost advantage of 21% (in 19 industries) compared to the US. It is worth noting that Canada has a large share in Mexico's mining investment, approximately 75% of total foreign investment, and an important presence in the country's aerospace, automotive and auto parts industry. The country is also looking to emulate these successes in the environment, creative and energy industries, to name a few.

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Negocios ProMéxico 13

Mexico and the Bet on

the Integration of Global Supply Chains

E

by negocios photo archive

rnesto de Lucas Hopkins has been the CEO of ProMéxico since December 2012.

ProMéxico is the Mexican government entity in charge of coordinating strategies to strengthen Mexico’s participation in the international economy. It supports the export process of companies established in Mexico and coordinates public and private actions aimed at attracting foreign investment to the country.

In line with President Enrique Peña Nieto’s fivepronged government strategy –a peaceful, inclusive, educated, prosperous and globally responsible country– ProMéxico aims to build a prosperous Mexico by boosting investment, trade and internationalization of Mexican companies.

During an interview with Negocios, the young CEO shared his vision of Mexico, the challenges it faces and the direction that ProMéxico will follow to support the growth of the Mexican economy. ­ What is your opinion of the Mexican — economy?

I am convinced that this is Mexico’s time. The country is in the right place at the right time.

For more than 20 years, Mexico has worked to strengthen its economy, and now we can see the results: analysts, consultants, entrepreneurs and specialized media around the world agree that we have a stable and growing economy.

Regardless of the challenges facing the global economy today, Mexico’s Gross Domestic Product (GDP) recorded a 4% growth in 2012, and is expected to grow 3.5% in 2013. Meanwhile, the country’s inflation rate was 3.6% in 2012 and according to several estimates it will remain the same in 2013. In addition, in January 2013 the country’s international reserves recorded a historic high of 165.5 trillion dollars.

All these figures show why the eyes of the world are focused in Mexico… Because our country has a promissory horizon, full of growth and development.

And the present administration is working hard in order to push ahead this momentum. The government of President Enrique Peña Nieto has a

very clear vision of where Mexico is heading and what Mexico needs to accelerate its development. To do this, he has set five major goals for his administration.

Specifically, ProMéxico is working hard to support the fourth goal: achieve a more prosperous Mexico.

In this regard, the Government is promoting that Mexico remains an open economy, a world trade promoter and a supporter of foreign investment in our country.

—What are the advantages for Mexico in its current economic context?

The global financial crisis of 2008 has forced the global economy to restructure. As part of this process, large transnationals have had to make decisions to relocate their operations in more cost-effective destinations with strong infrastructure and skilled human talent. Therefore, the face of the global economy is changing and emerging economies are playing an increasingly important role.

Within this context, Mexico has positioned itself as one of the most attractive and profitable destinations for business development. There are at least four reasons behind this: the country’s strategic geographic location; the existence of a legal and regulatory framework that favors investment; the availability of a highly-skilled and specialized workforce; and competitive production costs.

—For over two decades Mexico has defined public policies to bring its economy to where it is now.

The bet on free trade has been a crucial element of these policies. Mexico is currently one of the most open countries in terms of trade and has an extensive number of free trade agreements in the world. What’s next?

We must understand that free trade is not an end in itself, but a tool for economic development to boost business expansion and achieve a higher wellbeing for the general population.

In that sense, free trade has been a key element of Mexico’s growth. Even at times when the trend has been to adopt protectionist measures to “bulletproof ” national economies against the fluctuations of

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“I strongly believe that this is Mexico’s time; the time to seize opportunities and advantages and capitalize on them as the global economy gathers momentum.” the global economy, Mexico has maintained, even strengthened, its bet on free trade. In light of the recent financial turbulence, Mexico decided to move ahead with its economic liberalization program and not only avoided adopting protectionist measures, but furthered the elimination of tariffs and the liberalization of several goods and services.

With the positive results achieved through the country’s economic openness strategy, the next step is to stay the course but with a new perspective.

The strategy is to continue pushing Mexico’s foreign trade, diversifying both the goods and services that the country exports and their destinations. To do so, Mexico is involved in a new generation of free trade agreements that seek to strengthen the multilateral trade system and favor regional economic integration to consolidate global supply chains.

These agreements seek to create synergies and leverage the specific attributes of each participating economy, to integrate more solid trade and economic blocs that favor regional growth and economic development.

—What do you mean when you talk about global supply chains?

The concept of global value chains means that production is no longer carried out in one country. Every process, from producing raw materials to transforming them into finished goods, is done where the skills, materials, cost and quality conditions are.

Therefore, a product can be designed in the US while its parts are manufactured in China and the final product assembled in Mexico, only to be exported back to the US, where it is sold to the end consumer.

In this way, import-export statistics lose importance; what matters is being the country that adds more value to products, especially in terms of intensive use of knowledge and complex manufacturing processes.

Mexico has a highly productive export sector that is internationally competitive, rapidly growing and makes intensive use of capital and technology.

—In which global supply chains can Mexico become a key link?

Our country is ready to support more innovation and high technology activities because we have the necessary human capital and experience, as well as an economy that exports sophisticated products.

The goal is to support every sector in the country to help them move forward in their transition to advanced manufacturing, with special attention on boosting those industries that are able to generate more technology and

Negocios ProMéxico 15

knowledge transfer, such as the automotive, auto parts, aerospace, IT and software, electric-electronic, medical devices and renewable energies.

Mexico is already a very attractive destination for these sectors. The goal is to seize this opportunity as a country and further the competitiveness of these industries.

—What is Mexico’s position in the area of advanced manufacturing?

Mexico is currently a leader in advanced manufacturing.

It is the third largest exporter among G20 members in medium and high technology manufacturing, as a percentage of the GDP; Mexico is behind Germany and South Korea and ahead of China, France and even Japan, which are globally renowned for their technological capacity. In addition, we are the leading exporter of medium and high technology in Latin America.

An interesting fact is that Mexico is home to more than 200 research and development centers that belong to global companies such as Dupont, Honeywell, General Electric, Intel, Ford, Mabe and Ericsson, among many others.

For this reason, we are looking for a support policy that includes the manufacturing, services and research and development sectors. We are speaking of a modern industrial policy where all sectors make a coordinated effort to move forward. In that sense, supporting innovation and productivity in our country will be crucial tools to achieve this goal.

—What is Mexico’s goal with this policy?

I am very optimistic for Mexico’s future. Currently, the country is very well positioned and continues to improve its advanced manufacturing capacities, strengthening its internal market and consolidating domestic production chains.

As I have said before, I strongly believe that this is Mexico’s time; the time to seize opportunities and advantages and capitalize on them as the global economy gathers momentum.

Mexico is ready to face today’s challenges, and I agree with the various analyses that say that the country will become one of the strongest economies in the world in the coming years. That is the main goal of the policies we are implementing.

—What is ProMéxico’s role in this scenario?

At ProMéxico we are working and will continue to work very hard in the next few years to become the best ally of companies seeking to export from Mexico and companies that want to transfer their operations here.

We want to strongly support every investment project that generates opportunities and well-paid jobs for Mexicans. We also want to be facilitators who help every project that comes into our country prosper.

In that sense, we want to work with a higher degree of integration in every area: with the states, the business sector and the academic sector. We want to establish a link with the country’s manufacturing sector, working hand in hand to generate more opportunities for growth and development. n

mexico:

A Virtual Success Story ____

by guillermo rodríguez abitia* photos archive

Mexico is set to become a great producer of virtual reality applications. The evolution of the virtual reality industry in Mexico will aid others that are currently booming in the country, like the automotive, aerospace, tourism, health services, and energy industries, providing a fertile ground for a strong leveraging of opportunities and strengths.

F

or most people, virtual reality has become a commonplace term in their everyday lives. Today, children have grown accustomed to interacting with computer games or watching movies and TV programs in 3D. Professionals rely on computer programs which allow them to design models of buildings, structures, pieces of machinery, furniture or even fashion garments, to get a better idea of how prototypes look from different perspectives.

Even though virtual reality has been around for some decades, it is until now that its presence has become pervasive in people’s lives, at many levels. what is virtual reality?

Some of the concepts used in information technology jargon, like artificial intelligence and virtual reality, have caused people to get lost in translation and to misunderstand what virtual reality truly is.

Virtual reality refers to the creation of an artificial world in which a user may interact in many levels. It may be semi-immersive, as is the case of video games and simple animated videos, where the definition of objects and the sense of depth give a clear three-dimensional perspective, requiring no more sophisticated equipment than a simple screen; or immersive, where through the use of special glasses or other equipment, one gets the feeling that objects “jump out” of the screen, which is what is known as 3D. The most extreme cases of virtual reality are those called “caves,” where a person stands within a 360-degree virtual world and interacts with it, rather than being just a passive viewer.

At the National Autonomous University

16 Negocios ProMéxico

of Mexico (UNAM), the “Ixtli Room” is a pioneering facility for immersive virtual reality where various developments in the field have been made to support learning and research. A portable version of the Ixtli equipment has also been developed and is now in the deployment process for every school at UNAM. There is also what is known as augmented virtual reality, where the virtual world interacts in some way with the real world.

Thus, a computer application may identify elements in the real world through a lens of a GPS, extend the projection of images beyond the screen, and have alternative inputs to the system through natural elements like fingers or body movements. This is not limited to the projection of output images on the screen, but also to other surfaces like tables, walls or even human skin.

Evidently, the virtual reality field is strongly related to that of multimedia applications, since they both aim at building representations of the real world and creating fictional ones. what is it used for?

The most recognized applications of virtual reality are those geared towards the industry of entertainment. Most people have played computer games or gone to animated movies or even watched films in 3D. Recently, TV devices have evolved

Negocios ProMéxico 17

significantly by taking 3D entertainment to homes. Even sports are now broadcasted in 3D. Nonetheless, there is a wide range of virtual reality applications. In the health industry, it is used to treat phobias or simulate surgeries. In aviation, it is used to train pilots. Training is also widely supported by virtual reality wherever high-precision skills development is required for employees. Such is the case of an application developed by the Institute of Electrical Research (IIE), whose main objective is to train workers of Mexico’s electric industry.

3D modeling alone is widely used for design of all types, from bridges, buildings, and other engineering structures, to pipes, electric installations, clothing, machinery components, and other elements through what is commonly known as ComputerAided Design (CAD).

Building virtual environments is not exclusive for video games or movies; it is also frequently used for culture, historic records preservation, tourism and virtual stores, among other applications. The UNAM holds one of the most notorious examples in the field, with an application that keeps a 3D record of pre-Hispanic cities, such as the ancient Mayan City of Bonampak, providing an environment where one can admire its fabulous buildings and frescos without having to travel

to the state of Chiapas. Also at UNAM, there is an augmented reality application called UNAM 360, where one can aim a smartphone camera at a building or structure, and immediately get information about said construction like historic facts and routes to get to places, among other functions. This application may be extensively used for tourism purposes in different cities and sites.

An interesting example of a virtual reality application was showcased during the 2010 World Expo of Shanghai, where alongside the traditional exhibition space for country pavilions, there was also a virtual expo. Thus, people from all over the world were able to visit the expo by means of a virtual reality environment, without having to travel to China. It also offered the advantage of providing “extra room”, as there are no space limitations in the virtual world. And so the concept of “extended pavilions” was introduced as a way of allowing participants to extend their promotional offer in the virtual world.

Furthermore, the virtual pavilion would be able to linger after the physical one was destroyed, providing a permanent historic testimony for the world.

ProMéxico gave this important responsibility to UNAM, with outstanding results. The virtual pavilion can still be visited at shanghai2010.unam.mx.

Making it Happen in Mexico The global boom of virtual reality and multimedia applications makes room for plenty of investment opportunities. Mexico is not only one of the largest consumers of these applications, but also one of the countries that are best suited to become great producers.

In 2012, as a result of a ProMéxico initiative, the city of Guadalajara was awarded the title of Digital Creative City (DCC), where a significant amount of federal investment was made to establish the largest digital media site in Latin America.

Building synergies with Guadalajara’s DCC, other cities have been moving forward to develop this industry as well, such as Tijuana, Morelia, Mexico City, Mérida, Torreón and Guanajuato.

In the past few years, the entertainment industry in Mexico has experienced a steep growth, and the provision of qualified and highly competent human capital has been a paramount activity carried out

by Mexican universities and institutes of higher education. All this so that all related fields to virtual reality may be covered, such as digital animation, computer graphics and multimedia development, among many others.

Clearly, Mexico is gaining leadership in video game production in the region, since it has the talent and infrastructure required to support and develop these

projects. According to PricewaterhouseCoopers (PwC), Mexico is the largest video game market in Latin America. KPMG describes it as the most competitive destination for video game production in the Americas. Mexico has become an important production destination on the continent and investment opportunities in these areas are extremely appealing.

The evolution of the virtual reality industry in Mexico will aid others that are currently booming in the country, among which are the automotive, aerospace, tourism, health services, and energy industries, providing a fertile ground for a strong leveraging of opportunities and strengths.

The possibilities are endless, and Mexico offers all the right conditions for the development of the virtual reality industry, such as highly-skilled human talent and a strategic geographic location.

Moreover, there is a large market in the country that can help any new venture get on its feet, and blossom, making Mexico a virtual success. n * Director of Research, Development and Innovation at the National Autonomous University of Mexico (UNAM), General Direction of Information and Communication Technologies. Former president and founder of the Latin American and Caribbean Association for Information Systems (LACAIS).

There is a wide range of virtual reality applications. In the health industry, it is used to treat phobias or simulate surgeries. In aviation, it is used to train pilots. Training is also widely supported by virtual reality wherever highprecision skills development is required for employees.

Such is the case of an application developed by the Institute of Electrical Research (IIE), whose main objective is to train workers of Mexico’s electric industry.

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The Latest Intel on Mexico’s Booming IT Industry Rated the world’s third-largest exporter of IT services, the value of the Mexican market has quadrupled in the last decade. ____ by karla garduño photos archive

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Other firms like Forrester and A.T. Kearhe value of Mexico’s IT market is México IT (2005), which focuses on parhas quadrupled in the last dec- ticipation in international events and trade ney rank Mexico fifth and sixth, respectiveade, climbing from 4 billion usd in fairs in an effort to build bridges between ly, while KPMG acknowledges it to be the 2002 to approximately 16 billion Mexico’s IT enterprises and the world’s most competitive option for the location of in 2012, according to estimates by the Na- leading consulting firms and analysts, so as diverse IT service sectors.

Software development, cell phone manutional Chamber of the Electronics, Telecom- to familiarize them with the value of these companies, says CANIETI Director General facturing and advanced manufacturing promunications and IT Industries (CANIETI). cesses in the fields of aeronautics, biomediOn a par, exports grew from 1.75 billion Rogelio Garza Garza.

“Why are analysts needed? Because the cine and electronic components are some of usd in 2002 to 4.49 billion in 2011, rising to IT sector behaves in the same way as the the strengths of Mexico’s IT industry, says an estimated 6 billion usd in 2012.

Mexico’s free-trade agreements with the stock exchange. If analysts, who are special- Director General of the Mexican IT IndusUS –which purchases 80% of the country’s ists in their field, speak highly of you, people tries Association (AMITI), Javier Allard.

AMITI represents 230 companies that IT exports– and other countries, as well as take notice. It’s like being given a triple ‘A’ are working to encourage other produclow-cost opportunities arising from Mexico’s investment rating,” states Garza Garza. tive sectors to adopt IT soluproximity to major technology Gartner, one of the most tions as a means of boosting producers and consumers are the country’s competitiveness. just two of the factors that have prestigious IT consulting and According to Allard, a fourfueled that growth. research firms in the world, pronged approach has been takAccording to CANIETI en. The first step has been to enPresident Santiago Gutiérrez, a rates Mexico third in terms of courage more enterprises, assogovernment policy specifically exports, just behind India and the ciations, universities and governdesigned to promote the sector ment agencies to make greater has also been instrumental in Philippines. use of IT. Second, the association achieving these figures, in the is working hand-in-hand with sense that it has rallied educaIn addition to funds put up by the IT México IT and is helping enterprises develop tional authorities and the industry around companies wishing to participate in these their capacities with a view to promoting excommon goals.

“The potential to do business is always events, México IT is financed by govern- ports. Third is the training of human capital your starting point. If you have that poten- ment initiatives like the Software Industry with the support of México FIRST. And, finally, there is the relationship with the govtial and it’s further enhanced by favorable Development Program (Prosoft).

The second program is México FIRST ernment, both as an IT user and in its role as a public and educational policies, training and certification, then you have all the ele- (2009), which also has access to Prosoft promoter and regulator of the industry.

“From here, a series of activities involvments you need to seize that opportunity,” funding, except in this case subsidies are channeled through companies to individu- ing ties with universities, educational assays Gutiérrez.

Just over a dozen states in Mexico have als. Training for software developers, certi- sociations and different levels of governmanaged to implement the “triple helix” fication of human capital, the development ment emanate. The final goal of all this is concept, i.e. in addition to aligning the inter- of technological platforms and the setting to promote investment in IT, with a view ests of the industry with public policy, they up of design and innovation centers are just to improving the country’s efficiency and competitiveness, a prerequisite to this being have synched education, both at university some of the benefits the program offers.

México FIRST has 380 certification op- a sector with more efficient, more competilevel and in terms of training and certifications and has certified some 34,000 individu- tive enterprises,” explains Allard. tion, with the sector’s needs.

Jalisco, Nuevo León, Baja California, als to date. “We are constantly monitoring Querétaro, Chihuahua, Estado de México the market, singling out platforms that can Challenges and Mexico City are some of the entities be developed to help Mexican enterprises Mexico’s IT industry faces three main chalthat have successfully implemented the “tri- strengthen their productive capacity and lenges: the geographical diversification of exple helix” concept. Not surprisingly, these human capital, so they can develop their do- ports, the strengthening of its productive and mestic market and go on to seek out niches export base by incorporating more small and are the states with the highest IT output.

In recent years, Mexico has migrated on international markets,” adds Garza Garza. medium companies, and greater emphasis on specialized services, advanced manufacturfrom traditional manufacturing to a more ing and innovation and research. specialized, added-value business model. Strengths As regards small and medium enterprisMultinationals have set up research and Thanks to a well structured public policy, design centers in the country and Mexico’s combined with the efforts of the industry es, which are deemed crucial to addressing engineers have a reputation for being highly itself and the number of qualified engineers the aforementioned challenges, these need graduating from the country’s universities more subsidies and venture capital: they creative and innovative.

“Mexico attracts complex projects that –over 75,000 a year according to the United need to be put in touch with investors and demand enormous creativity, great ingenuity Nations Educational, Scientific and Cultural trained in different areas.

And while industry executives and leadOrganization (UNESCO)–Mexico’s IT inand a lot of analysis,” concludes Gutiérrez. ers agree that Mexico is still far from ousting dustry has earned international recognition.

Gartner, one of the most prestigious IT India as the world’s leading IT manufacPrograms to Get Ahead To foster greater cooperation and promote consulting and research firms in the world, turer, growth in recent years indicates the the growth of Mexico’s IT industry, CANI- rates Mexico third in terms of exports, just country could well be on its way to becoming a worthy runner up. n ETI has introduced two programs. The first behind India and the Philippines.

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Nearsoft,

an Ally in Software Design In just seven years, the Mexican firm has won clients in the US and Canada and is ranked high on the Great Place to Work listings for Latin America. ____ by sandra roblágui photos archive

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earsoft takes the business of other software companies seriously. Since its creation in 2006, the firm established in Hermosillo, Sonora, has specialized in solving its clients’ business needs with such an innovative approach that now it holds a portfolio of 14 customers in the US and Canada.

Roberto Martínez, co-founder of the firm, explains that Nearsoft focuses on developing programs and intellectual property for other companies. The firm this young entrepreneur represents grew out of a merger between the business he founded just after graduating as a systems engineer and that of his partner, Mateo Pérez.

In Hermosillo, the company works for other software developers during the creation and improvement of new programs.

“We don’t do ‘projects’, we work hand in hand with our clients to create high-impact products. We assemble a specialist’s

team to work as a seamless extension of our clients’ development team. We value commitment, leadership and teamwork and we measure our results against these standards,” the founders explain on Nearsoft’s website.

Most of the Mexican firm’s clients hold the patent to their programs, although in some cases they use only licensed products, where the intellectual property owner is the Mexican developer.

For a long time, Mexico has trained highly-skilled engineers capable of creating top-quality software products: “Talent abounds in Mexico,” says Martínez, who believes that the country is emerging from a manufacturing nation to an economy based on high levels of production of intellectual property.

Flexibility and added knowledge are two of the most valuable features amongst the services offered by the company, which is why it comprises a pioneering work team

that offers advanced solutions to its clients.

Currently, Nearsoft employs a staff of 95, most of them engineers, among which are Germans, Peruvians, Venezuelans, Canadians, French and, of course, many Mexicans working to achieve the firm’s goals.

“Our customers need to get their products quickly into the hands of users. They need engineers who understand that a product with fewer features that is widely used is better than one with hundreds of features that is not used,” explains Martínez.

Nearsoft makes use of agile working methods and its extensive experience involving the concept of “time to market”.

“How can we create a customer base that owns and uses the products as fast as possible?” Martínez asks. “Beyond solving that technical question, we advise our clients to learn quickly from their users and customers in order to apply the market needs into its products,” he answers.

As Martínez explains, the firm’s staff combines technical skills with knowledge of their clients’ business, to which is added innovation and a lower cost than they would pay for similar products in their home countries.

Even though Nearsoft could very well be the competitor of its customers, it has chosen to be an ally and to correct deficient processes in their software. Clients value the closeness of the Mexican engineers and, above all, their creativity. “We have a slimmed-down, horizontal organizational structure, so that our customers always find it easy to talk to the engineers who they have dealt with from the beginning,” says Martínez.

This understanding of technology has enabled other software producers to see the Mexican company as a strategic partner: “From the get-go we show them that their business success is our success,” adds Martínez.

And regarding business, Martínez is a specialist. Since 2006, when he left for Silicon Valley in search of new customers and encountered his business partner Mateo Pérez, the company began a period of growth that was only slowed –not halted– by the 2009 global economic crisis. Before that, and again after 2010, the Mexican company has grown by between 25% and 30% annually.

Furthermore, Nearsoft is proof that business growth and good work conditions are compatible. In 2007 the company began to assess and improve its organizational environment. Just one year later, in 2008, it was included in the top-20 places of the Great Place to Work rankings in Mexico.

In 2012, it moved from 16th to sixth place and entered the ranking for all of Latin America, where it occupies the 49th spot.

Recently, the developer Mark Patiño stated: “Working at Nearsoft as developers means feeling proud of our professional work culture and environment […] Many people working in the computer industry tend to make too many assumptions and are scared of asking questions if they have doubts. At Nearsoft that is not the case. We are passionate about what we do and that is evident for the client […] I believe that’s why customers stay with us even when there are other options available.”

That is the story of a company that builds software, leadership and ethics. n www.nearsoft.com

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Mexico:

A Talent for Key Operations Mexico is determined to become one of the world’s key players in information technology and all the related offshore processes. Vangtel, a company based in the north of the country, has just the potential for that. ____ by omar magaña photos courtesy of vangtel

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he main selling point of Vangtel, a company offering consultancy in offshore Business Process Outsourcing (BPO), information technology and call centers, is to highlight Mexico’s human capital with talent to spare when it comes to conducting operations that are central to global companies today.

Every time the firm, based in Hermosillo, Sonora, “sets out its stall” for large companies to decide to move their back-office operations from economies like the US, Germany, Japan and the UK, or from traditional offshore bases –India and the Philippines– to Mexico, it emphasizes the excellent training of the country’s workforce in disciplines that are now considered fundamental, beginning with English as a second language and information technology.

“The main feature of most of our positions is globalization, in the sense that the person who is working with us is actually doing so in a global world,” says Arturo Rodríguez, Vice president of business development at Vangtel.

While Vangtel reassures its customers by signing service contracts in the US, through its partner in that country, Arizona-based The Offshore Group –in order to be governed under a known and reliable legal framework– it also states in its bid that its human capital comprises Mexican university graduates with highlevel technical and analytical skills. It also points out that during the time it has operated from the border state of Sonora, it has maintained agreements with language and software certification schools in order to ensure the quality of its operations.

“Certainly, there are people whose main occupation is related to the phone but we have software developers, support engineers,

network engineers and other engineers who oversee networks related to telephone or telecommunication lines. Other personnel are related to finance, accounting and payments,” relates Rodríguez.

It is significant that the company’s headquarters are in Hermosillo; the company also has bases in Ciudad Obregón, Sonora, and Guadalajara, Jalisco. According to Rodríguez, the proximity of Sonora and Arizona has created a shared culture in which the use of the English language is essential. Moreover, there is a group of universities in the state that have given a significant boost to degree subjects related to information technology. In Guadalajara, Vangtel has welcomed the development that has taken place in the technologies and software cluster, hence its presence in that city in western Mexico.

Vangtel believes in a key aspect usually overseen when attracting global companies and that is the fact that Mexico and the US are in the same time zones, an issue of no little significance when it comes to matching processes. It is clear that Vangtel will always emphasize an argument of basic importance for any company: Clients become more competitive when they set all their important, non-core business processes in a country that offers a highly-skilled workforce and lower costs than those of the major economies.

Vangtel Paves the Way In its invitation letter to Mexico, Vangtel tells companies the benefits of establishing in a country that has everything ready to get the cogs turning almost straight away. The state of Sonora offers the physical, legal and management infrastructure for call

centers, BPO units or data centers to connect to the world in a timely manner.

“We have a very specific model insofar as it allows companies to control how it operates. We believe that the way we support the firms enables them to be productive and run the right operation,” states Rodríguez.

The main feature of Vangtel is its “shelter program”, that is, solutions tailored to each company. The Sonora-based firm helps to conduct operations that require anything between one to 500 employees, especially those that corporations are willing to delegate to a third party, such as customer service operations.

With this set-up, the company’s clients define the tasks they want to hand over and the size of the staff, without losing ownership and control over important data.

“We know of no other company that does what we do the way we do it,” affirms Rodríguez. He continues, “We are an established company with over a thousand employees for different customers.

We are also the largest ‘shelter’ in Mexico.” On the other hand, he recognizes some limitations with respect to the size of the human

capital available, agreeing that it may not be the best choice for companies requiring development centers or call centers with 3,000 people in them. For smaller operations, however, Vangtel believes itself to be the ideal partner in the country.

Vangtel is part of the industry that is changing the face of Mexico for the world, information technology, which has been strengthened through the efforts of the private sector and universities that have set themselves the goal of beating the Philippines to third place in this sector, on a global level.

Given its status as a hybrid industry, Vangtel’s client portfolio includes a wide range of companies, to which it offers about 15 different services ranging from development, programming and software support, to conducting financial transactions.

Vangtel and other companies of the kind in Mexico are turning the country into a nerve center for the knowledge society that already drives and will continue to drive business in the century that is just beginning. n

Vangtel will always emphasize an argument of basic importance for any company: Clients become more competitive when they set all their important, non-core business processes in a country that offers a highly-skilled workforce and lower costs than those of the major economies.

www.vangtel.com

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Arkus Nexus, Made-to-Measure Technological Solutions

In addition to providing quality technological solutions, Arroyo attributes the company’s success to local talent, combined with its geographical location and emphasis on showing its customers a human face.

This Tijuana-based company has created a technological eco-system capable of providing solutions for a wide variety of sectors. Boasting an attractive business model, it currently exports 70% of its output to the US. ____ by antonio vázquez photos courtesy of arkus nexus

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asoline, insurance and education may not seem like sectors that have a lot in common, but Arkus Nexus, a Mexican company based in the border city of Tijuana, Baja California, has come up with a technological solution tailored to each.

The result of a merger between two consulting firms specializing in software, Arkus Nexus has been in business for over ten years and currently exports approximately 70% of its output to the US. In the last decade, the company has grown to the point where it now employs 100 people at its 900-square-meter building in the heart of Tijuana’s financial district, the birthplace of Mind Hub (Mexico Innovation Development), which develops apps for iPad and other mobile devices targeting mainly the educational sector.

“Arkus and Nexus fused ten years ago. We were both originally consulting and software development firms –which has been our main line of business– and have exploited Tijuana’s geographical location: a bilingual, bicultural eco-system that is close to California, one of the region’s largest markets,” says Arkus Nexus founder Jorge Arroyo.

A watershed in the firm’s history was its participation in the TechBA program back

in 2006. According to Arroyo, TechBA, which backs the international expansion of Mexican technological companies, was the “shove” it needed to enter the US. Since then, growth has been exponential, maxing out at 100% in 2012.

In addition to providing quality technological solutions –Arkus Nexus’ client portfolio includes the insurance companies Quadrant and Metlife, Coca Cola and gas stations in the region–, Arroyo attributes the company’s success to local talent, combined with its geographical location and emphasis on showing its customers a human face.

“We can reach San Diego in minutes. We can get on a plane and be in West Coast cities in the US in no time. Plus, we don’t just focus on the technical side of the services we render, but on quality and human resources on the business side,” Arroyo points out.

“As soon as you get past the barrier and manage to persuade American customers to take off their blinders in relation to Mexico, they realize work methods are similar in both countries,” interjects Felipe Fernández, Director of Special Projects at Arkus Nexus. “We have customers who come to us and say they feel like they’re working in Silicon Valley. Our products

sell themselves and I can guarantee that of every ten executives who come to us, eight leave extremely satisfied with what we do.”

Over the years, Arkus Nexus has come to specialize in the development of outsourcing software, programs for insurance companies and gasoline stations, and solutions for the retail sector and medium-sized companies whose needs can’t be met by small companies, but that are too small to be appealing to larger ones.

“There are chains with 10 or 30 stores for whom the small target isn’t practical but with whom larger companies aren’t always willing to work. They have budgets of 2, 3, even 4 million pesos, which can be enough to do something interesting, but this medium-sized market lacks providers and that’s where we come in with solutions tailored to their needs,” explains Fernández.

Mind Hub, A Technological Eco-system With Arkus Nexus well on the road to consolidation, Arroyo decided it was time to take the next step. His idea was to bring together local technological companies under one roof. An idea that materialized in the form of the Tijuana-based

initiative Mind Hub (Mexico Innovation Development).

Managed by Ulises Elías, a Mexican specialized in innovation in Denmark, Mind Hub has six companies that develop cutting-edge products like Ed Ninja, a series of iPad apps designed for children with autism.

In April 2012, Mind Hub launched its first iPad apps for children with autism, dyslexia and other learning disorders. That same year, Mexico’s National Council of Science and Technology (conacyt) selected Mind Hub as a beneficiary of the Support for Innovation Program on the basis of those applications.

Although its main market is in the US, Arkus Nexus and Mind Hub aim to expand their Latin American operations to the Southern Cone by 2015.

“We want to expand our operations beyond Tijuana, leverage more regions in Mexico and take on the retail and gasoline sectors in Latin America,” says Arroyo. “As for the commercial side,” he concludes, “we have our sights set on larger markets and the natural step is to position ourselves among larger customers, larger firms.” n www.arkus-solutions.com

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An Enabling Marriage of Business and Technological Know-How

Enable’s know-how and services have put it at the top of its field in Latin America in a relatively short space of time. ____ by sandra roblágui photos archive

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nformation is power. In the case of Enable, it has given the company the muscle to consolidate its business and help other companies make the transition to a high-performance culture by measuring their goals and finding solutions to achieve them, says the firm’s founding partner and commercial director Héctor Salgado.

Unlike other consulting companies specializing in finances or technological know-how, Enable leads the way in both fields with a team of around 100 business and technology experts versed in strategic, financial and operating management methodologies.

The company’s services range from strategic management models and financial planning solutions to business intelligence and business process modeling (BPM), including a deep knowledge on SAP ERP and GRP (Government Resource Planning) “Technology is a tremendous facilitator, but before you can apply it, you have to get a clear understanding of the customer’s activities and needs,” explains Salgado.

Enable’s founding partner and commercial director states this because he often encounters companies of all shapes and sizes that aren’t clear on which indicators they should be measuring to determine whether

or not they are headed in the right direction.

Fortunately, Enable has that knowledge and can design indicators, offer key solutions, design and implement automated solutions, provide technical support and introduce efficient strategies to put its customers firmly in the high-performance leagues.

“When a company knows what to measure, how to measure it and what to keep track of, it starts focusing on the most important aspects of its business,” affirms Salgado.

In Mexico, some 100 customers have witnessed the benefits of Enable’s expertise, from the insurance company Allianz, the pharmaceutical company AstraZeneca, the manufacturer of Mercedes Benz automobiles Daimler México, Genomma Lab, the gas distributor Tractebel, Banco Compartamos, and the Heineken brewery to state governments and other government agencies like the Federal Electoral Institute (IFE) or the National Workers Housing Fund Institute (Infonavit).

Founded in 2000, Enable already has a presence beyond Mexico’s borders, rendering services to the representative offices of Grupo Zapata –a Mexican-headquartered packaging solutions provider– in Mexico, Guatemala and Costa Rica; Banco de Bogotá and Grupo Phoenix in Colom-

bia; Grupo Mundial and the Heineken representative office in Panama; Polibrasil (Hall of Fame) and VW Brasil in Brazil; and Financiera Crear and the Essalud social security institute in Peru.

The team’s know-how and the fact that its financial advisors are also versed in technology have been advantageous from day one.

Héctor Salgado recalls that Enable began operating with just six employees experienced in the Enterprise Resource Planning (ERP) system developed by SAP, a multinational specializing in business management software.

“It was such a trouble-free birth that before the month was out we had a major customer: Grupo Zapata [whose technological platform and transaction information systems are still managed by Enable]. We immediately went out looking for more market.”

And found it, thanks to the firm’s expertise in financial planning, its methodologies that foster an effective strategy execution, and solutions that provide visibility through measurement. This specialized knowledge gives the Enable team a competitive advantage over other IT companies operating on the continent.

Enable’s methodology and its alliances with some of the world’s leading IT software

developers –SAP, Corporate Planning and OpenText– have positioned it as the company with the largest cache of strategic management tools in all of Latin America. “Most of our consultants are developed at home. We nurture and train our human resources.”

Using financial and non-financial data, such as information about processes and customers, the Enable team designs maps that “can be applied to the company as a whole or in each of its areas via independent processes” using SAP software or Vision Engager for managing strategy and monitoring performance.

What sets this Mexican firm apart from others like it is that it transfers knowledge to its customers so they have the knowhow to maintain the system themselves at the end of the process.

The services Enable renders have taken it as far afield as Peru, where it has opened an office and is attracting customers. Now it is looking to expand to Chile.

What do Chilean customers want?

The same as anywhere else, says Salgado, “to achieve high performance with the aid of specialized but versatile tools and technologies.” n www.enable.com.mx

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According to MEG, Mexico is now the top destination for investment in prospecting activities in Latin America and, as of the end of 2011, number four on the list of 121 countries that received investment in prospecting activities, coming in just below Canada, Australia and the US.

Mexico’s Mining Industry, Worth Its Weight in Gold The statistics don’t lie: Mexico is not only the world’s leading silver producer, but the top destination for investment in prospecting activities in Latin America and the fourth worldwide. Rated the country with the fifth-best environment for doing business in the mining sector in terms of political risk, it is the third most attractive to the Toronto Stock Exchange, making mining one of the most strategic productive sectors to the country’s social and economic development. ____ by negocios photos archive

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ost of us aren’t aware of it, but the metals and minerals produced by the mining industry are essential to our everyday lives and can be found in everything from cutlery and jewelry to television sets, microwave ovens and the electrical wiring in homes. Even toothpaste contains minerals.

In short, mining is the core to the world’s economic and social development, and Mexico is a major player in the industry. The numbers speak for themselves: in terms of political risk for mining investment, Mexico is ranked fifth, just 14 points behind Australia, which is number one on the annual ranking published by Behre Dolbear, a consulting firm that has included Mexico in its top five since 2006.

Mexico is the third-most-attractive country to the Toronto Stock Exchange, where 58% of the world’s public mining companies trade.

Rated among the world’s top ten producers of 17 minerals, Mexico’s mines produce metallic minerals like iron and coal; precious metals like gold, silver and platinum; base metals like copper, nickel and aluminum; non-metallic minerals like gypsum and clays, which are used in the construction industry; industrial

materials like china clay and bentonite; and gemstones like diamonds, sapphires and rubies.

As of the first half of 2012, Mexico was the world’s leading silver producer and has climbed the ladder to position itself as the tenth-most-important producer of gold and copper, according to the international consulting firm Metals Economics Group (MEG).

Mexico’s Ministry of Economy (SE) estimates that the mining industry employs over 309,000 people directly and creates another 1.6 million indirect jobs. Between 2007 and 2012, investment in the sector rose 381.6% to 24 billion usd, while the 2006-2012 investment goal is expected to be surpassed by a substantial 64%.

This growth in investment is no coincidence. According to MEG, Mexico is now the top destination for investment in prospecting activities in Latin America and, as of the end of 2011, number four on the list of 121 countries that received investment in prospecting activities, coming in just below Canada, Australia and the US. At the close of 2011, Mexico had 23 worldclass deposits and another six classified as super-world-class.

At the end of 2012, there were 285 companies participating in 853 mining projects the length and breadth of the country.

A Gold Mine of Information The Mexican Geological Service (SGM) is a government agency that reports to the SE, whose job is to promote the efficient use of the country’s mineral resources and generate geological data.

Recognized as a leader in its field, the SGM sets the bar for similar institutions in other countries and has been instrumental in consolidating Mexico as the world’s top destination for investment in prospecting activities per square kilometer.

Drawing up geological mining, geochemical and geophysical maps is the SGM’s main line of work and a vital one at that, facilitating as it does land, social and economic planning. By the same token, the availability of systematized digital maps illustrating the nature of surface rocks and the subsoil makes it possible to interpret and track geological changes, and assess reserves of natural, nonrenewable resources.

Mexico has geological mining, geochemical and geophysical maps on a scale of 1:250,000 covering the entire country, and geological mining and geochemical maps on

a scale of 1:50,000 covering 668,214 square kilometers (34.1% of the country).

Thanks to the SGM’s map-making efforts, Mexico now has its first Geochemical Atlas, which illustrates mineral deposits in the various regions of the country, thereby increasing the prospector’s chances of striking it lucky.

A total of 530 prospective sites with mining potential –mainly gold, silver, lead, zinc, copper, manganese, phosphorite, sulfur, iron, titanium, molybdenum, rare earth metals, lithium, zeolites, strontium, fluorite, baryte, gypsum and calcite– have been identified, 76 of which are already prospecting targets, 67 have been concessioned and 27 have been tendered to the private sector.

With the aid of advanced communications and information technologies, the SGM has been able to compile, organize and manage the information it has collected over the last six decades and integrate it with data generated on a daily basis on a public database, which can be accessed free of charge at www.sgm.gob.mx.

Another useful tool is the GeoInfoMex database (mapasims.sgm.gob.mx:8399/GeoInfoMexSGM), created by the SGM to meet demand for timely, accessible, user-friendly geological data.

The first and only database of its kind, GeoInfoMex is updated in real time and can be accessed using mobile devices, facilitating the decision-making process for investors, and saving them time and money no matter where they are in the world.

In addition to the geological information compiled by the SGM, GeoInfoMex includes transparent data on mining property (Mining Office at the SE), geographical information (National Institute of Statistics and Geography, INEGI), agrarian nuclei (National Agrarian Register), protected natural areas (National Commission for Protected Natural Areas, CONANP), the Earthquake Census (National Seismological Service and the Geology Institute at the National Autonomous University of Mexico) and catchment areas (National Water Commission, CONAGUA).

GeoInfoMex boasts over 4.5 million specialized data entries, classified by topic and region, and because the information is fully integrated, the user can visualize graphics and combinations thereof, which, in turn, are linked to their respective descriptions.

The most widely consulted geological database in the country, GeoInfoMex has indubitably done its part in attracting investment to Mexico’s mining industry. n

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Between 1994 and 2011, mining industry’s participation in Mexico’s Gross Domestic Product (GDP) grew 1.5%. Today, this sector contributes with 4.9% of the country’s GDP.

MINING Industry

In 2012, mining industry was Mexico’s fourth largest income source, after automotive, electronic and oil industries.

As of December 2012, mining industry was responsible for 328,555 direct jobs and 1.5 million indirect jobs in Mexico, according to data from the Mexican Institute of Social Security (IMSS).

4th

MEXICO IS AMONG THE TOP 10 PRODUCERS OF 17 MINERALS: Ranking

#

A

00.0 Mineral

Percentage in global production

1

Ag

21.8 Silver

2

F

3

20.0 Fluorite

3

Bi

11.4 Bismuth

Ce

3

10.6 Celestite

Wa

9.3 Wallostonite

5

Cd

7.4 Cadmium

5

Pb

5.3 Lead

5

D

5

4.9 Diatomite

Mo

7

4.4 Molybdenum

PRODUCTION

Zn

5.8 Zinc

8

Gy

2.6 Gypsum

8

8

B

1.8 Baryte

Mn

1.3 Manganese

8

G

0.8 Graphite

3.5

Salt

4.7

57.4

VALUE

4.3 Gold

10 NaCl

South Korea

US

In 2011

10 Au

17.01 billion USD

Sonora

25.3

VALUE

20.8

Au

Chihuahua

10.2

billion USD

34 Gold

Coahuila

6

Durango

Ag

6

80% metallic minerals

20% non-metallic minerals*

Precious metals represent 47.4% of total production value

Zacatecas

22.8

San Luis Potosí

5

Cu

15 Copper

Guerrero

4

UK

Fe

MAIN PRODUCTS

4.3

Switzerland

4.4

9

Iron

26% Silver

Pb

22%

5.5 Lead

Gold infographic oldemar

21 Silver

18%

TOP PRODUCERS

MAIN EXPORTED MINERALS

MAJOR EXPORT MARKETS

Percentage of Mexico’s total mining production

Percentage of total mining exports

Percentage in Mexican exports

Copper 7% Zinc *Not including gas and oil.

10 Cu

3.1 Copper

China

10.4

Sources: INEGI/General Directorate of Mining Regulation (Ministry of Economy)/ Mexican Geological Service (SGM)/US Geological Survey/Banco de México.

Mexican

32 Negocios ProMéxico

Negocios ProMéxico 33

Soledad Dipolos

La Bolsa

Fresnillo-Newmont

Minefinders

Ag

Au

Au

85

Santa Elena Silver Crest Au

Las Mercedes

MINERAL

Ag

Au

Yamana Gold

Au

45

Ag

194

Gold Ag

San Felipe

64

Minera Frisco

Ag

SONORA

95

San Francisco

Au Creston-Mascota Agnico-Eagle

37 La Colorada Au Au

El Arco

Grupo México

Ag

Mo

Luz de Cobre

Red Tiger Mining

El Boleo

Baja Mining Cu

Zn

Bahuarachi Cu

Pan American Goldfields

Jinchuan

Ag

Cu

2,150

Co

La Cieneguita

Au

Zn

BCS

Between 2007 and 2012,

Co

AuRico Gold

Cobalt

Zn

Pb

Velardeña

Pb

25.24 billion USD

have been invested in Mexican mining industry.

Lead

Ag

Au Camino Rojo Goldcorp

Ag

Au

San José

Ag

Au

El Águila

308.5

El Gallo

Copper

Guadalupe y Calvo

1,169 DURANGO

Cu

Au

Peñoles

5th

Zinc

Ag

203

SINALOA

Zn

It is the world’s fifth safest country for mining investment, after Australia, Canada, Chile and Brazil (Behre Dolbear Group).

According to data from the General Directorate for Mining Development (Ministry of Economy) as of December 2012 there were 285 mining companies with foreign capital operating in Mexico, in more than 853 mining projects.

S Sulfur

McEwen Mining Au

Ag

ZACATECAS

18

Los Metates

Chesapeake Gold Au

Ag

50

Arian Silver

Investment in

Gold Resources

MINI NG & METALLURGICAL industry (million USD)

La Fortuna

Argonaut Gold Mexichem

La Preciosa

S

Pan American Silver Au

7,647

Unimisur

Au

50

5,612

MICHOACÁN

Ag

VERACRUZ

3,656

3,316

infographic oldemar

2,858 2,156 OAXACA

New mines in operation 2010- 2012

Projects under construction and/or advanced exploration stage

Investment (million USD)

El Toro

First Majestic

Au Ag

El Saucito

Fresnillo Plc

Au Ag

El Porvenir

Minera Frisco

Angangueo

Au

Grupo México Au

Ag

Ag

San José

Fortuna Silver Au

160

309

140

Ag

100

‘07

‘08

‘09

‘10

‘11

‘12

Source: Mexican Mining Chamber (CAMIMEX).

Au

CHIHUAHUA

Mexico is the leading investment destination for the exploration of non-ferrous minerals in Latin America and fourth worldwide (Metals Economics Group).

st

Molybdenum

Ag

11

Argonaut Gold

1

Mo

Au Concheño Frisco

Timmins Au

Ag Silver

Au BC

INVESTMENT

34 Negocios ProMéxico

Treasure of the Sierra ____

by graeme stewart photos courtesy of torex gold

Mexico has a 500-year old mining tradition, from the Conquistadors to present day investors. The mineral-rich nation has welcomed prospectors of copper, zinc and, especially, silver. But it is gold, that most precious of metals, that has captured the imagination of a Canadian gold mining company, currently drilling in the mountains of Guerrero.

Negocios ProMéxico 35

T

orex Gold, the Toronto-based mining company, is currently drilling for gold in the Sierra Madre del Sur in the state of Guerrero, and by doing so is helping to maintain a 500-year-old tradition of mining for precious metals in Mexico.

The Conquistadors, followed by the colonials of New Spain, and most recently the Mexicans themselves, built hundreds of mines, silver mines in particular, throughout the country, making household names of the likes of Taxco, Zacatecas and Guanajuato.

But it is gold that has attracted Torex Gold to the mountains of the south. The company expects all financing for what has become known as the Morelos Gold Project to be in place by the summer and admits to being more than a little excited by its future prospects in Mexico.

President and CEO Fred Stanford told Negocios that the company is currently in the second round of financing talks with 10 banks regarding the project.

Torex is expected to require 675 million usd to bring the project to full commercial production, with 383 million usd already raised in a bought deal that closed in October 2012.

The financing talks had been delayed as a result of Hurricane Sandy, Stanford says, but added there was “lots of interest,” with each bank looking to invest about 50 million usd.

“Once initial term sheets are signed, the banks will do their due diligence. We expect this whole process to be finalized in the first half of this year,” says Stanford.

Exploration work at Morelos is continuing, Stanford adds, including at three magnetic anomalies at the south of the Balsas River section of the 29,000-hectare property.

The company has hired the Chief Operating Officer (COO), the general manager, the mill and mine managers and appointed a contractor to oversee construction of the project, Stanford states.

Late last year, Gabriela Sánchez, VP of investor relations, told BNamericas construction is expected to begin in mid-2013. That was confirmed by Stanford: “The strategy has always been to deliver on our internal goal of 5 million ounces of gold north of the Balsas River and to find new deposits south of the river. We are also encouraged by the support of the ejidos, the community, and all levels of government, as we work together toward the objective of developing a world-class mine that will benefit all stakeholders involved.”

Indeed, Stanford is very impressed with the level of support from federal and local government and the clarity of Mexican mining laws and regulations. “To have such clear policies and procedures from national and local government is a great boon. It has helped us tremendously,” he affirms.

He is also impressed with the quality of Mexico’s universities specializing in engineering and geology and promised that in the future, Torex Gold will have close links to universities producing such high caliber graduates.

The Morelos Gold Project is located 180 kilometers southwest of Mexico City in the state of Guerrero. The project, spread over 29,000 hectares, includes the development of Los Guajes and El Limón gold deposits alongside additional prospects. The project is owned by Torex Gold Resources (earlier Gleichen Resources) and is currently in the advanced stage of development. Torex began drilling at the project site in 2010, after acquiring the asset from Teck in 2009.

The project was developed in a two-phase work program. Phase one included exploration, infill and step-out drilling, reviews relating to resource model, additional recommended metallurgical tests and a mineral resources update at a cost of approximately 15 million usd per year. Phase two included a feasibility study with a cost of approximately 10 million usd.

Exploration at the project area has been carried out since 1998. The activities included local and detail mapping, sampling of rock, silt and soil, trenching, drilling including reverse circulation (RC) and diamond, ground induced polarization (IP), geophysical surveys, mineralization characterization studies and sample testing.

Torex Gold Resources Inc. is a well-funded, growthoriented Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold.

The Morelos Gold Project is only a four hour drive from Mexico City on paved roads. It is easily accessible and located near established centers of supply for materials and workers. Power for any mining operation

would be available from an 115kV line that crosses over the Project and water for process and potable use could be sourced from nearby springs. The Project’s current NI 43-101 mineral resource estimate stands at 4.8 million ounces of gold in the measured and indicated category plus an additional 600,000 ounces of gold in the inferred category.

With a management team in place, 100% ownership of a solid gold project with superb exploration upside and a strong balance sheet, the company is committed to significantly increase the current resource base through an aggressive exploration program, while simultaneously advancing the Morelos Gold Project into production.

Stanford states: “The company’s focus on drilling the magnetic anomalies in the Media Luna area has been very successful in discovering both high-grade gold intersections and thick intervals of potentially economic gold mineralization. The two magnetic anomalies drilled to date, which cover approximately 391 hectares, appear to represent very large gold mineralizing systems that warrant extensive additional drilling to define the size and grade of the gold zones. The drilling within the magnetic anomalies has resulted in the discovery of local areas containing very high-grade gold along with significant copper and silver values.”

It may be an old story, familiar to Mexicans over the past five centuries, but the Mexican tradition of mining for precious metals continues well into the 21st century. n www.torexgold.com

36 Negocios ProMéxico

Negocios ProMéxico 37

Mexico is written in gold letters. In the 21st century the mineral wealth of the country still drives the timeless industry of precious metals exploration.

Goldcorp is living proof of the fact.

G

Mexico is our Star Horse:

Goldcorp

____ by omar magaña photos courtesy of goldcorp

oldcorp is the case that confirms that Mexico remains that horn of plenty of which so much was said in past centuries. The country pays rich dividends to the Canadian mining company, meaning its goal is to consolidate what has been achieved so far and to grow with new investments.

Goldcorp owns Peñasquito, the largest gold mine in Mexico and 35th largest in the world, located in the municipality of Mazapil, Zacatecas.

Since the second half of the past decade, the company has directed all its efforts to this site located in the semi-desert plain on the state border between Zacatecas and Coahuila and where it has discovered a huge potential for the exploitation of gold, as well as silver, zinc and lead. In early 2012, the mining company estimated that by the end of the year, it would recover between 370,000 and 390,000 ounces of gold.

Now, a year later, Horacio Bruna, senior vice president of operations in Mexico, estimates that much of the 300 million usd that Goldcorp will invest across their Mexican facilities –at El Sauzal (Chihuahua), Los Filos (Guerrero) and Peñasquito– will go to the latter. “Peñasquito is a young company that has a lot to contribute,” Bruna says.

Two projects currently under development, Noche Buena and Camino Rojo, are in fact located on land near Peñasquito. The first has proven resources of 1 million ounces of gold and 30 million of silver while the second could provide up to 2.8 million ounces of gold and 52.6 million ounces of silver.

Peñasquito itself, a mine consisting of two open pits, Peñasco and Chile Colorado, already employs 2,695 people and has an estimated lifespan of 22 years. Soon it will oust Goldcorp’s mine in Guerrero, which currently produces an average of over 350,000 ounces of gold annually and employs around 2,120

people in the municipality of Mezcala. It will be far larger than El Sauzal, which produces an average of 80,000 ounces of gold per year and where the company continues to conduct exploration work to enable it to extend its life beyond 2014.

Zacatecas will thus enable Mexico to maintain its leading position among the portfolio of countries in which Goldcorp has investments, namely, Canada, the US, Guatemala, Argentina and Chile.

“Mexico is responsible for 34% of Goldcorp’s gold production worldwide ,” confirms Bruna.

“When we say that Mexico is our star horse it is because we believe it is economically and politically stable, it is very friendly and we are very happy to be in it,” he adds.

In this way, Mexico has contributed to Goldcorp ranking in recent years as one of the strongest mining companies in the world, first with El Sauzal, where the Canadians have worked since 2005, and now with the enormous project in Zacatecas. It will continue to contribute even further to the ongoing growth that the precious metals giant foresees over the next five years, a period that could see its global production of gold rise to 4.2 million ounces per year.

“We anticipate that 2013 will be similar to 2012, production will remain in the order

of 770,000 ounces (across the country) and investment will be 300 million usd spread over the three mines, but mainly in Peñasquito,” reveals the vice president in Mexico.

Sustainable Growth Goldcorp writes the word “sustainability” in large letters. According to Bruna, it is important for the company to have reached a point of sustained growth after investing heavily both in their mines and in the communities where these are located. “You can’t just come, dig and leave; you have to leave a structure behind you,” he emphasizes.

The added value of Goldcorp, he continues, lies in the support it provides for the development of the communities around their projects and the fact that practically all the human capital of each mine is hired in the same place. Bruna highlights, for example, the case of Peñasquito, where the company has proven the mining experience of the inhabitants of this area of Zacatecas, who have a long tradition in exploiting these resources and are now seamlessly integrated into the work of a technological and modern mine and the sustainable mining of the 21st century.

Moreover, professional posts have been taken up by graduates in relevant fields from the National Autonomous Univer-

sity of Mexico (UNAM), the University of Guanajuato (UGTO) and the University of Zacatecas (UAZ).

“We have enabled several professional exchanges, with Mexicans working in our mines in Canada and foreigners coming to work here,” says Bruna, though he clarifies that in the case of El Sauzal and Peñasquito, all the staff is Mexican.

The standards flown by Goldcorp include monitoring the safety of its workers, their quality of life and the future prospects that they can generate as a result of their work in the mining developments.

“This is about involving others in the company’s success,” declares Bruna.

Everything indicates that Goldcorp is here to stay in Mexico. The vice president of operations in the country sees no reason for the company not to maintain the pace of exploitation and exploration it has kept up so far. The country retains, in his view, the positive indicators relating to the legal framework and financial situation that Goldcorp analyzed before setting up in the field. “I would say that, generally speaking, there is economic stability that allows us to conduct our business our way, as well as clear rules that give us peace of mind,” he concludes. n www.goldcorp.com

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Salt:

Mexico’s White Gold Exportadora de Sal, a company under both public and private ownership, has positioned Mexico among major salt producers globally. ____ by mariana morales photos archive

A

lthough salt is a product of common use, we rarely think about where it comes from and its range of applications.

Salt has over 14,000 known uses and is present in virtually all aspects of everyday life. For instance, few people know that the largest use of salt is in the chemical industry, followed by highway deicing and human consumption.

Worldwide production of salt stands at about 300 million tons a year and China is the largest producer globally, with annual output of 70 million tons, followed by the US, with a production of 45 million tons per year.

Mexico operates the world’s largest open salt works, Exportadora de Sal (ESSA), a Mexican company created in 1954 to produce and export marine salt.

Thanks to ESSA, Mexico has positioned itself as the tenth largest salt producer glob-

ally. It is also the largest in Latin America, according to data from the company and the Mexican Association of Salt Industry (AMISAC).

ESSA has an installed annual production capacity of 7.5 million tons of salt, of which 70,000 are table salt. At the end of 2011, the Mexican company had a 26% share of the international salt market, its main market being the Pacific basin, where its share reached 35%.

The countries and regions to which ESSA makes most of its exports are Japan, the US, Canada, Korea, Taiwan and Central America.

In 2011, ESSA achieved a historic volume of sales –7.6 million tons– including exports of 1 million tons to China and Taiwan. In terms of production units, the company remained the main supplier of salt to Japan, with a market share of 43%.

ESSA is a majority state-owned company, affiliated to the Ministry of Economy (SE)

through the Department of Mining. It is located in the town of Guerrero Negro, in the Mulegé municipality of Baja California Sur, 730 kilometers from the city of Tijuana, Baja California. The Mexican government holds 51% of the shares in the company, through the Mining Development Trust (FIFOMI), while the Japanese Mitsubishi Corporation has owned 49% of the share capital since November 1976.

Currently, the company has about 1,200 employees, including workers, technicians and managers, and pays mining rights on four concessions. Through various channels, ESSA’s annual contributions to the Mexican Treasury average 12.5 million usd per year.

In recent years, ESSA has recorded an average positive balance of 65 million usd a year. At the close of 2011, net sales totaled nearly 132 million usd, with a net profit of more than 18 million usd.

From 2006 to 2011 the company ’s annual production increased from 6.6 million tons to 7.3 million, with a record high of 7.4 million tons recorded in 2008.

Most of the production is for the chemical industry (75%), followed by highway deicing (14%), general purpose (5%) and water treatment (5%).

Furthermore, the ESSA table salt plant produces different types of the mineral for human consumption, such as high purity and ground salts, which are packed in different presentations for the end consumer and the food processing industries.

High purity salt is produced from concentrated brines using a process patented by the company’s research and development department.

ESSA has a system that is unique in the global salt industry, designed to suit the company’s natural environment. It is a process that allows the return of residual brine

to the ocean without having an impact on the environment.

In addition, the company generates the electricity it consumes and has installed a fleet of tugs and barges, urban infrastructure in Guerrero Negro and Isla de Cedros, and a treatment plant for drinking water.

Between 2006 and 2012, ESSA reduced its consumption of diesel by 3.65%, from 1.37 liters to 1.32 liters per ton moved.

The offices and workshops of ESSA, and the Guerrero Negro community in general, have reduced power consumption by 12.9%, from 7.1 to 6.2 million kWh per year.

Similarly, in Guerrero Negro freshwater consumption has been reduced by 11.3%, from 318 to 282 liters per person per day.

This represents estimated daily savings of 9.072 cubic meters, equivalent to 3,311 cubic meters per year –an important effort to preserve the resource in an extremely arid zone like the Vizcaíno Desert.

The plant’s Integrated Management System is certified ISO 9001:2008 with regard to quality and ISO 14001:2004 in relation to environmental conservation.

In the last five years, ESSA has implemented a number of actions to improve its financial and logistics processes, as well as its operations with a robust technology platform. As a first step, the company successfully implemented a SAP ERP system as the basis for transactions, thereby automating operations and enabling an integrated and reliable system. It has also automated HR and payroll processes, together with quality, ecology and safety, among others.

Besides increasing its production of salt, ESSA has also improved its production processes, specifically with regard to the physical and chemical quality of the salt, increasing by 7% the number of grains larger than 1/4 inch (reference size), from 35% to 42% of the salt produced. That enables better and more efficient washing and draining of the salt, resulting in drier and purer shipments.

Moreover, developments were made in the washing plant facilities to take advantage of the improved quality. With this new infrastructure and equipment, a 50% reduction in losses was achieved due to salt dissolving in the washing process, increasing production capacity by 800,000 tons.

In that way, ESSA is ensuring that salt remains a profitable business for Mexico and that it remains one of the leading global producers of this white gold. n www.essa.com.mx

40 Negocios ProMéxico

Negocios ProMéxico 41

Today the favorable conditions for Korea Zinc’s growth in Mexico remain. “If we are buying half of all the zinc that is extracted, that means that the other half is still available,” Ojeda Díaz indicates.

Korea is in Zinc with Mexico Half of Mexico’s zinc output is bought by Korea Zinc, the largest and most prestigious zinc producer in the world. ____ by sandra roblágui photos archive

H

alf of the zinc currently produced in Mexico is distributed across the world thanks to one of the world’s most prestigious firms, Korea Zinc. There must be something special about Mexican production of this metal, since the company is planning to expand its extraction operations and processing plants in the country over the coming years, according to Elías Ojeda Díaz, country representative and executive consultant for the multinational.

It is not merely a question of the quality of Mexican zinc, which is used mainly for industrial purposes, especially for galvanizing pipes –such as those used in oil refineries– and steel tools. The metal is also in demand in the chemical and pharmaceutical industries, for which zinc oxide compounds have been developed, which prevent fungal infestations and can be used to treat inflammations.

Alongside quality, Ojeda adds that the country offers very secure and favorable conditions for international trade in minerals and gives several examples of these advantages: “The tax and legal frameworks are trustworthy; tariffs are low and stable and there is a processing infrastructure that ensures constant supply,” he points out.

Korea Zinc first arrived in Mexico with a five-person office at the start of the new century, having underpinned its prestige across the globe.

The company was first created during the Second World War as a smelter belonging to the Korean government, for military purposes. When the war ended, the state company turned its efforts to working on industrial applications.

In 1974 the company was privatized. At that stage it was a small smelter with a market focused on Korea and neighboring

countries. In 1990 its capacity for growth, high quality processes and environmentally sustainable policies enabled it to be floated on the Korea Stock Exchange. This provided the platform for very rapid growth on the global smelting market.

Today it is the largest smelter of zinc concentrate in the world, processing over 2 million tons a year.

A significant part of that success, no less than 10%, is due to the extraction and smelting work that is carried out in Mexico, a country which has engaged in mining since pre-Hispanic times –an activity that in the early 21st century strategically contributes to the country’s gross domestic product (GDP).

During the first stage of its relationship with Mexico, Korea Zinc simply bought large quantities of the metal concentrate from local and transnational intermediaries.

Soon after that, once it saw the quality of the product, the smelting process and the ease of export, the Asian company took a further step, purchasing the metal directly. Initially, in the middle of the last decade it bought the entire output of Mexico’s main zinc extractor, based in the Peñasquito complex in the state of Zacatecas.

The third step taken by the Asian company was the creation of a diplomatic representation office in Mexico in mid-2011.

Today the favorable conditions for Korea Zinc’s growth in Mexico remain. “If we are buying half of all the zinc that is extracted, that means that the other half is still available,” Ojeda Díaz indicates.

To the volume of production may be added the country’s facilities for export of the mineral through the ports of Lázaro Cárdenas, Michoacán and Manzanillo, Colima, both on the Mexican Pacific coast and both boasting first-class infrastruc-

ture, such as high-quality and secure storage facilities for material in transit, states Ojeda Díaz.

The favorable climate for the mining industry has led the Asian firm to plan new projects in the country. When the smelter decided to make direct purchases of zinc, it also established projects of processing plants with Mexican partners in the states of Durango and Chihuahua, which it will expand in the coming years to double their current capacity.

Korea Zinc also plans to purchase a processing plant, buy zinc mines and start up a number of projects for the mining and smelting of lead. “We have a portfolio of 30 outright purchase or investment projects in the country,” says Ojeda.

What advantages do miners based in Mexico obtain from the Korean multinational? “We are end consumers, not retailers. We have competitive terms of purchase, since we do not have significant administrative overheads and therefore do not charge that to our suppliers,” he explains.

In the words of the executive, to these advantages may be added security of purchase, rapid payment and continuous consumption of any amount of zinc concentrate. “We do not speculate; we have no metals waiting for long time in the yard. We buy, buy, buy,” he asserts.

That does not mean they do so blindly. There are records of the quality of mining in Mexican territory dating back to when the ancient Mexica, Maya and Toltec cultures were settled in the country. “Mexico has mining in its blood and, these days, having a metallurgical expert on your ranks means producing better zinc for the world,” concludes Ojeda. n www.koreazinc.co.kr

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Negocios ProMéxico 43

“When you start to integrate you don’t lose the value of your original commodity but rather add value and generate profit both from the raw materials and from the intermediate parts of the chain,” explains Antonio Carrillo, CEO of Mexichem.

The company has also shifted from being a firm focused on the domestic market and on exporting pure commodities such as fluorite –with sufficient reserves at the San Luis Potosí mine to continue operating for another 40 years– to become a conglomerate with a presence in 40 countries that earns at least 50% of its revenues from its final products: chlorine, sodium hypochlorite, sodium hydroxide, hydrochloric acid, potassium chlorate, vinyl resins, plasticizers, refrigerants based on hydrofluoric acid, PVC resin piping and fittings and geosynthetic materials for construction.

Mexichem:

the true meaning of added value How does a raw materials supplier evolve into a company that integrates all aspects of the process and becomes a leader in the final product? Mexichem has the answer. ____ by omar magaña photos courtesy of mexichem

H

aving a raw material, even in large quantities, is not always enough. The commodity needs to be transformed in order to make a profit. For Mexichem, the petrochemical industry is the key and it is taking full advantage of it.

The Mexican company, considered the largest in its field nationwide and a leader in Latin America, owes its influence to an integration strategy that has radically changed its profile over the last 10 years: from being a supplier of basic commodities for chemical processes –primarily salt and fluorite– to a developer and retailer of end products. This

development also led Mexichem to make a full entry into the global market.

Prior to that, four decades of work had created sufficiently solid foundations for Mexichem to begin, very early this century, to acquire the companies that make up its three chains of production: Chlorine-Vinyl, which includes salt products, from chlorine and caustic soda to plasticizers and PVC resin; Fluorine, which comprises the production of metallurgical grade fluorite, used for the manufacture of a range of construction materials and hydrofluoric acid, for refrigerant; and Integral Solutions a line of business related

to the production and marketing of PVC pipes, fittings and accessories.

Mexichem was already a leading producer of fluorite –for it houses the largest mine of that mineral worldwide (located in San Luis Potosí)– but had to go further. The first step was the acquisition of INEOS Fluor, which produced hydrofluoric acid and the refrigerants derived from it. Likewise, having produced salt –from which it is possible to develop chlorine, caustic soda and part of the chain of polymers– Mexichem wagered on purchasing the largest producer of PVC components, which manufactures a vast range of pieces for handling fluids.

A Petrochemical Leader Mexichem operations are spread across the globe based on a strategy that links up local sales and production. The company has plants for fluoride processes in the US, Mexico, Taiwan, Japan and England; for processes related to the chlorine-vinyl chain it has presence in Mexico, Colombia, the US and England.

In parallel, the firm maintains an export program for fluorite and vinyl resins with destinations in the US, Europe, the Middle East and Asia. Moreover, the PVC resin manufactured in Mexico and Colombia is exported to Europe, India, to its own pipe-making plants located in the rest of South America and, to a lesser extent, the US. As a company that vertically integrates processes by acquiring the companies it needs to connect all its production chains, Mexichem supplies itself with many of the raw materials it needs. Carrillo reveals, however, that the firm has signed global contracts for the purchase of calcium and stabilizers, as well as to cover its vinyl chloride (VCM) requirements, which are provided by the companies Occidental Petroleum Corporation (Oxy) and Pemex. It is worth noting that Mexichem has recently established association agreements with both.

In January 2013, it ratified the partnership between the company and Pemex to commit 200 million usd for the production of VCM, while the agreement between Mexichem and Oxya ims to gain ground in the face of the possibility that the US will become a major competitor

in the field of petrochemicals, with the discovery and exploration of shale gas and the boost provided by the start of horizontal drilling in clay formations in the country.

“The challenge is in taking advantage of these changes,” says Carrillo, since the US could exploit shale gas for ethane and, therefore, the ethylene chain that is required for PVC, polyethylene and polypropylene.

Another way to get ahead of the competition is to innovate and the Mexican PVC and fluorite giant does so through research carried out in its technology development center, which is located in Europe and focuses on improving the firm’s key products: pipes and fittings for water circulation.

Mexichem also offers lectures on technological developments in universities in Mexico, Colombia, the US and Europe. “Basically, we look for new applications for our chemical products and find ways to make these products more environmentally-friendly.”

Global Human Capital Given the company’s expansion across the world, the nationalities that comprise its human capital are many. Carrillo indicates that of Mexichem’s 17,000 employees, about 2,500 are Mexicans working in plants within the country and abroad.

Professional exchanges between Mexico-based staff and other Mexichem facilities across the world allow the firm, in the words of its CEO, “To unify criteria, policies and procedures, and to learn from the other countries where we work. In a company that has grown so fast and with so many acquisitions, the culture is evolving and Mexican human capital plays a major role in that.”

Development is set to continue with forecasts pointing to further growth, which Mexichem foresees as orderly and even conservative, with 20% growth in sales, 20% in earnings before interest, taxes, depreciation and amortization (EBITDA) and 20% in returns by 2015. n www.mexichem.com.mx

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Negocios ProMéxico 45

Yamana:

Delivering Value through Reliability Yamana Gold is a Canadian-based gold producer with a primary focus in the Americas. Its Mercedes mine in Mexico’s northern state of Sonora –250 km from Hermosillo– is its only operation in the country and a significant part of a portfolio of operating assets that contribute to Yamana’s expansion as a leading mid-tier gold producer. ____ photos courtesy of yamana

A

s a growth-oriented company targeting sustainable production of approximately 1.75 million gold equivalent ounces (GEO) while maintaining low costs and following a portfolio approach to asset management, Yamana looks for projects that allow it to utilize in-house expertise to effectively and efficiently develop and operate gold mines.

In Mexico, particularly in Sonora, Yamana found the ideal conditions to establish: stable jurisdictions with a well-known mining infrastructure and history, clear permitting processes, and stakeholders convinced of the benefits and positive impact generated by mining.

“The development, construction and ramp up of Mercedes were ideal,” says Gerardo Fernández, Yamana Gold Vice President and Country Manager for Chile and Mexico. “Jurisdiction played a key role in the launching of the project, as we have access to good infrastructure and resources. Also, the permitting processes from development to construction to production were stable, predictable and navigated within a very reasonable and expected timeframe.”

These stable conditions allowed the company to progress seamlessly from defining drilling in 2007 to deciding on a construction date in 2010 to beginning commercial production in early 2012.

The underground mine where gold is produced by agitated leaching with counter current decantation and MerrillCrowe processing under the highest international standards was brought to production ahead of schedule and on budget.

In 2012, its first year of production, the mine churned out approximately 125,000 GEO, and expectations are that in 2013 the

mine will reach at least 130,000 GEO. This is a modest 10% of Yamana’s current production but it puts the mine in line with the company’s strategic niche of reliable and predictable low-cost mines producing between 100,000 and 200,000 GEO. Mercedes fits well within this category and has created tremendous value for Yamana and its shareholders.

Employing local labor is also a priority for the company.

Yamana has filled most of its 500 direct employment positions through the local workforce, which with the auxiliary employment created provides the community with the opportunity to share in the benefits associated with the successes of the Mercedes mine.

Sourcing local labor isn’t the company’s only commitment to the community. Yamana has on site managers in each area of expertise that ensure both the protection of employees and the environment and the surrounding communities. Yamana releases an annual Corporate Social Responsibility report that explains and quantifies the success of these programs and initiatives.

Mercedes has had a first full year of productive success with an expected 10 year mine lifespan. Aggressive exploration at the site continues with the goal to grow mineral resources and enhance Mercedes’ value and lifetime. Yamana views this kind of organic growth as an effective way to deliver significant value. The company has already expanded Mercedes’ output by approximately 20% with very little capital based on the anticipated growth in mineral resources expected through successful exploration.

“We have identified five mineral veins at Mercedes and exploration continues with the goal to increase mineral reserves and resources,” states Fernández. “A good example of the potential upside at the operation is the Lagunas Norte vein, a higher grade vein, which wasn’t included in the original mine plan and represents a significant opportunity to upgrade mineral resources and potentially increase production.”

Yamana has targeted increasing company-wide sustainable production to approximately 1.75 million GEO beginning in 2014 -approximately 46% above 2012 levels. This growth will come from the addition of new operations in other countries and planned expansions of existing operations.

The company has three assets at various stages of development and ramp up expected to begin commercial production in 2013, which will contribute to achieving the sustainable production target. The strategies employed in the development of Mercedes are being applied to those new projects with the expectation of a similar outcome. The same strategy will be used in the development of earlier stage projects in Yamana’s pipeline, with the most notable being Cerro Moro, in Argentina.

Yamana will continue to focus on delivering value through reliability of operational and financial results and organic growth. Mexico and the Mercedes mine are an important part in that delivery and have provided a successful entry into a prospective jurisdiction that could contribute to further growth for Yamana in years to come. n www.yamana.com

In Mexico, particularly in Sonora, Yamana found the ideal conditions to establish: stable jurisdictions with a well-known mining infrastructure and history, clear permitting processes, and stakeholders convinced of the benefits and positive impact generated by mining.

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Negocios ProMéxico 47

It runs one of the most productive mines at Pinos Altos, Chihuahua, and a satellite mine, Creston Mascota, which, since the beginning of operations in 2009, has produced a combined volume of 200,000 ounces per year.

The company also has mines in Quebec and Nunavut in Canada, as well as in Finland. In 2005, the company began negotiations to acquire the mine of Pinos Altos, which since 1998 was the property of the Mexican industrial group Peñoles.

Agnico-Eagle moved forward from the exploration to the production stage with considerable success, due to the high technical skills of the professionals involved in the project and to the quality of local talent.

Mexico: The Golden Path

to Opportunity

Canadian mining company, AgnicoEagle, has become a major player in Mexican mining in recent years, with plans to continue investing in the country where it has found large deposits, a climate of confidence and vital government cooperation. ____ by graeme stewart photos courtesy of agnico-eagle

A

gnico-Eagle, the Canadian mining company, has struck gold in Mexico and is so pleased with its Mexican employees and government cooperation for its operations that it has vowed to continue mining precious metals in the country for many years to come.

It is the latest chapter in the long-running and historical gold and silver mining industry that is now being renewed and modernized thanks to an inflow of foreign investment.

In the sierras of Chihuahua in the north of Mexico, some 40 mining companies from Mexico, Canada, the US and China are conducting explorations in the land that is also rich in silver, copper, zinc, marble, barite, gypsum, pumicite, silica and sands - raw materials needed for many of the world’s manufacturing processes, from technological to construction industries.

Agnico-Eagle is one of the foreign companies that have recognized the potential of the region. The Toronto-based firm is among the top 40 gold and silver producers in the world, according to the report “Mine 2011, The Game Has Changed. Review of the Global Trends in the Mining Industry” published by PricewaterhouseCoopers (PwC).

Following the strong results obtained, the company is willing to keep investing in Mexico. According to Tim Haldane, Senior Vice President for Latin America, the company has invested 500 million usd to date in its Mexican mines and its investments will continue to grow in the future, leading to prosperity not only for company investors but also for the communities found in the vicinity of the mines.

“The Mexico operations constitute a very important subsidiary within the group as a business unit. Its current growth in Mexico is very strong and has led to the search for new prospects across the country,” Haldane says.

“The outlook for 2013 is extremely positive and we think things will continue with a nice,

strong performance. In fact, we think Mexico is one of the best future business prospects and we will be looking for further opportunities in the country,” he continues.

The opportunities are mutual because Agnico-Eagle’s work in Chihuahua has created jobs for the small villages that comprise the municipality of Ocampo and for engineers in mining, chemistry, geology, mechanics, electrics, information technology systems and administrators graduated from universities mainly in Sonora, Chihuahua, Zacatecas, Durango, Coahuila and Sinaloa.

Haldane affirms: “We have a total of 1,350 employees in Mexico and 72% of them are hired and trained from the local area surrounding our mines, with the re-

The Lifestyle.

48 Negocios ProMéxico

Negocios ProMéxico | The Lifestyle 49

the Complete Guide to the Mexican Way of Life

The Lifestyle Briefs Page 50

48 Hours in...

Guadalajara Page 52

Interview Beatriz Morales The Infinite Possibilities of Creativity Page 56

A Brief History of The Veracruz Carnival Page 60

Interview Frida Escobedo An Architect Gone Public Page 62

Mexico According to...

Ana Claudia Talancón

maining employees who have joined the project coming from other areas in Mexico. Along with the skills and experience brought by our Mexican employees, we have also had great cooperation from the Mexican and Chihuahua governments.

We couldn’t have asked for more from them. I have found Mexico to be a stable, pragmatic and transparent place to do business. We are a satisfied customer.”

Mexico is one of the leading developing economies to have been a magnet for global mining.

A Mexican government report lists 750 open-pit mining projects currently operating with foreign capital in the exploration, development and production phase –with very few suspended. Canadian firms are clearly major participants.

Haldane points out that during the past 15 years, foreign and national investment in the Mexican mining industry has result-

ed in a highly technical sector which uses state-of-the-art technology and equipment for mineral extraction and processing, with high security standards and, above all, controls for cleaner production processes.

He adds: after the forest and military sectors in Mexico, mining industry is the largest tree planter .We have a nursery that

ed an Industria Limpia (Clean Industry) certificate in recognition of its work in helping to preserve the environment.

The firm plans to continue operations in Pinos Altos until 2026 and in Creston Mascota until 2018. The company is also seeking to expand to other deposits in Mexico thanks to the confidence and certainty it has found for its investments in the country.

“Agnico-Eagle’s plans for Mexico are the best signal of confidence the company has in the country. I can’t overstate how happy we are with our Mexican operations, especially with our Mexican employees and the government cooperation that we receive. We are ready to keep on working in order to preserve that confidence and continue growing in Mexico,” Haldane concludes. n

“Mexico is one of the best future business prospects and we will be looking for further opportunities in the country,” Haldane says. is capable of growing 160,000 trees a year.

Water treatment and recycling are also high on our list of environmental priorities.”

Agnico-Eagle’s environmental protection efforts in Mexico have not gone unnoticed and recently the company was award-

www.agnico-eagle.com

photo courtesy of las alamandas

Page 66

From Turquoise To Emerald

Five Heavenly Beach Destinations in Mexico

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The Lifestyle Briefs

The Lifestyle Briefs

FILM INDUSTRY

photo courtesy of canana

Canana, a Mexican production company founded by Diego Luna, Gael García Bernal and Pablo Cruz, has merged with America’s IM Global to create Mundial, a new label for the worldwide distribution of Latin American films.

Mundial will be headquartered in Mexico City and will be officially launched on the European film market in Berlin, in February 2013.

The new company plans to distribute between eight and 10 films a year, including Canana productions, with a view to establishing itself as a platform for the promotion of Latin American-made films.

In the meantime, Mundial will kick off with the distribution of three Canana productions: Paraíso, by the Mexican director Mariana Chenillo, Manto Acuífero, directed by Michael Rowe, who won the Caméra d’Or at Cannes in 2010 for Leap Year, and Mr. Pig, the fourth feature film –and the second English-language one– by Diego Luna, scheduled to be shot this year.

photo courtesy of tuxx

photo romina hierro

www.canana.tv www.imglobalfilm.com

DESIGN

ARCHITECTURE & DESIGN

Design for the Common Good

Pure & Simple As Water

Founded in 2011 by the state government of Oaxaca, the Oaxaca Design Center (CDO) seeks to promote not just the aesthetics of a design culture, but also raise awareness of its enormous potential to contribute to the common good, social peace and sustainability.

The former convent of Santo Domingo in the city of Oaxaca, a building listed as a World Heritage Site, will be converted to house the CDO. The first phase of the project, which consisted of solving storage, lighting, data and voice network and other interior design issues, has already been completed.

Entrusted to industrial designer Emiliano Godoy and the design firm Tuux, Godoy ’s approach was to establish a dialogue with the building ’s existing architecture by respecting certain distinguishing features, such as its barrel vaults and the thick stone walls that support its arches. www.cdo.gob.mx

Casa del Agua is a new artisan bar concept in Mexico City’s Roma District, where people can go for a drink of rainwater. The water is served in specially-designed and reusable glass bottles, and it’s harvested and filtered on-site. It meets the highest purification standards, going through a process of triple filtration, evaporation and condensation that makes it pure and perfect to drink. Then it is rematerialized and ionized, increasing its alkaline and antioxidant properties.

Casa del Agua is not just another brand.

It is a complete philosophy that combines purity and timelessness. Inspired by a traditional process, it has emerged as a nostalgic brand that evokes and appeals to that which is well made, practical and beautiful.

In Casa del Agua, man, machine and nature come together in a common language, unafraid of clarity and purpose. It is an encounter that merges the simplicity of water with modern purification processes that have both health and environmental benefits.

The concept surrounding Casa del Agua is a simplistic, pure and clean-cut creation

designed by THiNC. Héctor Esrawe and Ignacio Cadena from THiNC followed the brand’s principles: transparency, good quality and timeless design. Inside there is clarity and a pure nature, with nothing but the presence of the water bottle to speak for itself. Through the overall white surroundings, the black contemporary lights and the wooden planks you immediately get a sense of nostalgia, present in the mod. The eye-catching water bespoke piece in the center of the round bar is the perfect blend between the contemporary concept and the passion of the classic. The space displays character and importance even through its simplistic form, understanding the creativity behind the water.

Outside, in the rear garden designed

by Alejandro Tazzer is a teaser of a contemporary Eden. A great structural wooden altar type canopy amongst the ultimate symmetrical gardens on either side of the paths. www.casadelagua.com.mx

photos courtesy of casa del agua

Mundial, a New Platform for Latin American Film

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48 Hours in

Guadalajara

11:00 a.m.

Guadalajara is to be found in its markets, its mariachis and its fountains.

The city wakes each morning, content to see the sun reflected off its colonial buildings and countless squares. It doesn’t take much to captivate the unsuspecting visitor, be it the magnificent Orozco mural Man in Flames at the Cabañas Cultural Institute, the region’s colorful arts and crafts or its spicy cuisine. ____ by jimena sánchez-gámez photos archive

Saturday

Hotel Del Carmen Jacobo Galvez 45 Historic Center T. +52 (33) 3614 2640 www.delcarmen.mx

corner of Javier Mina and Calzada Independencia, is the Mercado San Juan de Dios, a gigantic, three-story market that immediately assaults the nose. You can find just about anything here, from sombreros, bags, ponchos and huaraches to ceramics and food, concentrated mainly on the second level. Birriera Palenque specializes in two dishes that are long-standing favorites among the locals: birria, a broth of seared chili peppers and tender meat –usually beef, lamb or goat– and tortas ahogadas, a sandwich made with a kind of tart, savory bread roll known as a birote, filled with barbequed pork and doused in a hot árbol chili sauce. It takes a mighty stomach to tackle both but whichever you choose will make you feel like your mouth is literally on fire.

photo paulo jiménez

4:00 p.m.

9:00 a.M. Guadalajara certainly isn’t short on hotels but it’s always best to choose a centrally located one so you can explore all the sights by foot. Hotel Del Carmen, right in front of the former Del Carmen convent, will enhance your vacation experience. This 19th century mansion has been transformed into a concept hotel with nine guestrooms named after famous Mexican artists like Rufino Tamayo, Günther Gerzo and Remedios Varo. Get off to a great start with breakfast in De los Refranes, a tranquil patio in the hotel grounds named after the fascinating world of Mexican proverbs.

2:00 P.m.

Nearby, on the

The walk from Plaza de la Liberación to the Cabañas Cultural Institute is a must.

Here, during October, you can witness the art of sculpting quarry stone at first hand.

On your way, you’ll also see the famous Degollado theater, whose Neo-Classical facade boasts a sculpture of Apollo and the nine muses. The theater coffee shop is the perfect place to take a break before continuing on to Plaza Tapatía, where you’re bound to see some child or other playing in the dancing fountains. The walk ends at the Cabañas Cultural Institute. Built in the 19th century by Manuel Tolsá as a shelter for orphans and the destitute, today it is a museum that houses 53 murals by the great José Clemente Orozco, an artist who portrayed life in Pre-Columbian Mexico and the cultural shock that the arrival of the Spaniards caused. No one leaves the old chapel without gasping in awe at its dome decorated with the mural Man in Flames, indubitably one of the masterpieces of the Mexican muralist movement.

10:00 A.M. The first point of call is the Metropolitan Cathedral and the four

squares that surround it, which together form a Latin cross. East of the cathedral is Plaza Guadalajara, a square with a refreshing fountain. This is where the tourist trams depart from. Southward is Plaza de Armas, identifiable by its wrought iron bandstand and sculptures of four Greco-Latin women. Northbound is the Rotonda de los Jaliscienses Ilustres, dedicated to the heroes of Jalisco, and to the west is Plaza de la Liberación.

Since you’re already in the downtown area, it’s worth taking a couple of hours to explore Guadalajara’s museums. The Museum of Journalism and the Graphic Arts (Av. Alcalde 225) is housed in an old building known as Casa de los Perros.

This is where the first rebel newspaper, El Despertador Americano, was printed at the initiative of Miguel Hidalgo y Costilla.

Fossil lovers won’t want to miss the Paleontology Museum (Dr. R. Michel 250) and a visit to Casa Taller José Clemente Orozco (Aurelio Aceves 27) is mandatory.

Here you can see lithographs, photos and sketches exhibited in what was once the artist’s atelier.

6:30 P.M.

Two blocks south of the cathedral is Avenida Juárez, a picturesque avenue that begs to be explored on foot. On the corner of Donato Guerra is a bronze sculpture of the engineer Jorge Matute Remus pushing a wall. In 1950, Matute managed to move the 1700-ton building of Teléfonos de México 12 meters without damaging it, allowing the telecommunications company to continue operating without interruption. A stone’s throw away is the Templo Expiatorio del Santísimo Sacramento, a church that appropriates European gothic-style architecture of the Middle Ages. Designed by Adamo Boari –the same architect who designed the Palace of Fine Arts in Mexico City– the church was completed by the Jalisco-born Ignacio Díaz Morales and is well worth a visit. If you walk back along Avenida Juárez, you’ll eventually come to Avenida Chapultepec, an avenue buzzing with cafés and restaurants where you can watch the sun set on Guadalajara.

54 Negocios ProMéxico | The Lifestyle

2:30 p.m.

Slightly further removed from downtown Guadalajara, Tlaquepaque eager-

8:00 P.M. For dinner, we suggest you book a table at either of Hotel Demetria’s two restaurants –the

Negocios ProMéxico | The Lifestyle 55

ly awaits the visitor with mariachis and chabelas (beer served in a special glass). If you’re game to sample some more of Jalisco’s culinary specialties, any of the restaurants in El Parián (a hacienda-like structure) will be sure to sate your curiosity. A hearty bowl of pozole will set you up for the walk to Plaza del Artesano and from here to Andador Independencia. Sergio Bustamante, a Mexican jeweler and sculptor who has created a world of his own populated with moon-faced characters, has a gallery here. Next door is the Regional Ceramics Museum, which pays tribute to the skilled hands of Jalisco’s potters.

Demetria or the Balthus. Another excellent option if you’re looking for a place to spend the night, the Demetria has 38 rooms, a gallery, a bookstore specializing in art, a folk art store and a boutique by the design duo Julia and Renata. Whichever one you choose, you’ll be treated to the cuisine of Antonio de Livier, a Mexican chef who fuses local and regional ingredients to create magical dishes like scallop tostadas and leg of pork in vinegar with green salsa and Tapalpa cream.

Hotel Demetria Avenida de La Paz 2219 LaFayette T. +52 (33) 3818 0060 www.hoteldemetria.com

Galería Sergio Bustamante Independencia 238 Centro, Tlaquepaque T. +52 (33) 3639 5519 www.sergiobustamante.com.mx

3:00 p.m.

Before returning to downtown 10:00 p.m.

Cantinas are a tradition that time

hasn’t eroded in Guadalajara, so no matter how tired you are, you’re going to have to drag yourself out for a drink.

La Maestranza (Maestranza 179), established in 1940, has adopted the art of bullfighting as its theme, while La Fuente (Pino Suárez 78) has an emblematic bicycle hanging over the bar that a patron left behind half a century ago. La Fuente has been in business for 90 years and receives a larger crowd during the day. But if action is what you’re after, we recommend La Mutualista (Madero 553), where the city’s taxi drivers used to gather to dance salsa.

Sunday 9:30 A.m.

Morning is the best time

to visit the downtown area of Zapopan, a municipality that forms part of the Guadalajara Metropolitan Area. Teopitzintli, a pedestrian zone that ends at Plaza de las Américas Juan Pablo II, in front of the Basilica of Zapopan, is teeming with restaurants. After breakfast at a sidewalk café, it’s off to the Zapopan Museum of Art, which specializes in modern art and the works of regional artists. Next to the basilica is the somewhat inconspicuous Museum of Huichol Art. Despite its small dimensions, it’s still highly informative if you happen to be interested in this particular indigenous culture.

12:00 p.m.

You can’t leave Zapopan

without visiting the popular galleries, bars and restaurants of Andador 20 de Noviembre. On Saturdays, an art and antiques fair sets up its stalls here but if you come on a Sunday, you can buy traditional cornstalk art and quarry stone sculptures at the Zapopan Arts and Crafts Center.

Guadalajara, we suggest you make a pit-stop in Tonalá, a municipality that takes pride in its handicrafts. Every Thursday and Sunday, traders come from as far afield as the Valley of Atemajac to set up their street stalls along Juárez, Madero, Cruz Blanca and Santos Degollado and the larger avenues Tonaltecas and Tonalá. Ceramic, blown glass, paper mache, clay and wood, from toys to masks, mountains of handicrafts of every conceivable material, form and color create a veritable feast for the eyes.

8:00 p.m.

Perhaps the most fitting way to say goodbye

to Guadalajara is with dinner at Anita Li. Located in a semi-industrial district, the occasional train chugs past the entrance of this eclectic restaurant, whose décor can best be described as somewhere between kitsch and vintage. Seafood takes pride of place on the menu but blends of Thai and Mexican spices give the palate something new to chew on, while a long list of Mexican wines plays up dishes like ox tongue with tangy mango curry.

Anita Li Inglaterra 3100 Vallarta Poniente T. +52 (33) 3647 4757 www.anita-li.com

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Negocios ProMéxico | The Lifestyle 57

Beatriz Morales

“Berlin has forced me to mature and change; it’s given me a much broader perspective of who I am and of my work.”

The infinite

Possibilities of Creativity ____ by paola valencia photos courtesy of beatriz morales

“I was 19 when I gave my first solo exhibition and sold my very first painting. When I found out it had been sold, I left the exhibition in tears because I realized I’d never see it again. It was heartbreaking.”

Art came into Beatriz Morales’ life so naturally that she can’t imagine herself doing anything else. An artist with an interdisciplinary education, Beatriz is constantly pushing the creative envelope. In an exclusive interview with Negocios, she reveals what it’s like to be a Mexican living in Berlin, her plans for the future and how she has managed to make a living out of art.

—When did you realize you wanted to make a career out of art?

I’ve always believed there are things you don’t decide. They just are. They happen spontaneously. And that’s how it was with me and painting. I’ve always liked art. I used to dance flamenco and play the piano, but nothing made me happier than painting.

I did my first canvas painting when I was 13. There are no artists in my family but my grandmother used to paint oil landscapes as a hobby. One day she got tired of painting and gave me all her materials. I had a hard time finishing high school because I’d stay up all night painting the ceiling and walls of my bedroom.

I studied at Mexico City’s Colegio Alemán but when the time came to decide on a career, I was afraid to admit that all I was interested in was painting because most of the people close to me regarded art as a very bohemian lifestyle choice.

So I opted for the next best thing and went to Italy with the idea of studying interior architecture in Milan but to enroll I needed to learn Italian. So I traveled to Florence to take a course in Italian and my first painting classes. Three months later, I called my mother to tell her I’d enrolled at the Academy of Fine Arts in Florence. And that’s how it all began.

—You also studied fashion design. How did you make the connection between fashion and art?

In my case, the connection came about like this: when I got back from Florence, I took a series of courses with maestros like Manuel Guillén, Savinder Sawarkar and Enrique Miralda, all of whom taught me a great deal. Enrique Miralda gave a sculpture class at Casa Lamm in Mexico City, which is where I met some art history students who took an interest in my paintings and suggested I stage an exhibition there. I was 19 when I gave my first solo exhibition and sold my very first painting. When I found out it had been sold, I left the exhibition in tears because I realized I’d never see it again.

It was heartbreaking. Those first paintings were very personal and loaded with emotion and I felt naked and vulnerable.

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—Why did you choose Berlin as your artistic lair?

The first time I visited Berlin was in 2007 and I felt at home from day one. I was amazed at the number of international artists who had made the city their home but, more importantly, I made good friends from the start: musicians –like the jazz artist Kurt Rosenwinkel, who asked me to do the artwork for his most recent album, Star of Jupiter– photographers, filmmakers, conceptual artists and the like.

What struck me most was the city’s famous motto “Poor but sexy”. It wasn’t expensive to rent an apartment or a studio and the exhibition venues were one-of-a-kind –derelict factories converted into galleries– and more openings, happenings and performances than I’d ever seen in one place. The thought of being part of yet another renaissance of a city with so much history was what prompted me to move there and, so far, I haven’t been disappointed.

—What has Berlin taught you?

Berlin has forced me to mature and change; it’s given me a much broader perspective of who I am and of my work. My approach to my work has evolved over these last five years. The city is a huge source of inspiration for me for many reasons, not just the obvious things, like the differences in language, food and weather when you’re far from your own country.

There have been many changes. I now work with ink and water engraving, collage and illustrations for magazines on a regular basis.

—Why the fascination with human faces in your work? Is it intentional or coincidental?

I began doing loads of self-portraits and I realized how tell-tale the face is. It’s a very clear, very direct plastic language. The smallest variance in the curvature, depth or length of a line can give out a completely different message. I love to observe people and when I meet someone new, I subconsciously measure their proportions with imaginary lines. One of the first conclusions I came to from my observations was that features have nothing to do with beauty; it’s expressions that are the key, what really define a person.

I tried to replicate the paintings I’d sold because I felt I needed them, but it was pointless; they weren’t the same. It was unsettling to think a part of me was leaving with a stranger and it unnerved me to think it would always be like that, so I asked myself: “What field would I like to work in where I can continue being creative and make replicas of my work without having to let go of anything?”

That’s how I came to study at IES Moda Casa de Francia.

—Although eventually you went back to painting, what did you learn from making clothes?

I had great fun experimenting with fashion. I won awards and appeared in publications. I also made some good friends, like the designers at Trista. For two whole years I stopped painting but my illustrations improved enormously. I was serious about fashion but I needed to paint, so I went back to fight for it.

—If you hadn’t chosen art as a way of life, what would you be doing now?

I can’t imagine myself doing anything unrelated to the so-called “art world”. If I didn’t have a career in the plastic arts, I’d probably be doing something in a world that offers the same infinite possibilities, full of color, texture and culture. Maybe that world could be in the kitchen?

—You’ve started designing jewelry. Tell us about this new phase in your career.

In 2012, Silvio Dulinsky, co-founder of Artency, came up to me at Berlin’s contemporary art fair, the Berliner Liste, and asked if I wanted to join his project.

Artency is a Madrid-based initiative in which jewelers, plastic artists, architects, visual artists, designers and sculptors pool their knowledge to create quality jewelry that they turn into wearable art. I immediately accepted the invitation. The challenge appealed to me and I was in my element being able to combine my knowledge of design, sculpture and painting. So far, I’ve designed eight pieces inspired by brush strokes. The first

molds have already been made and the pieces will be available for purchase online in February 2013.

—Does that mean Beatriz Morales is headed in a new direction or is it simply another chapter that will begin and end before you go back to painting?

I certainly see myself designing more. Design is a field I loved and where I learned a lot, not only about team work but about the origin of the materials, which is something I find fascinating. Painting is my first love but creating is creating and I’m open to every possibility.

—What is it you miss most about Mexico, especially in relation to your work?

I’m Mexican to the core and I miss my country all the time. I miss my studio, which is near Tepeji del Río, in Querétaro. I miss being close to nature when I’m working, in the middle of the mountains where there’s no cellphone reception and all you can hear are organic sounds and the occasional bang of fireworks from some nearby village. Most of all, I miss the people and their warmth, my family and friends who make me laugh so much. Sometimes I feel disconnected but when I come back, it’s as if I’d never left. Right now I’m living abroad but it won’t be forever.

—What are the challenges you face as a painter?

I face numerous challenges which change depending on the

circumstances. The main one is how I relate to my work.

Sometimes I get angry or don’t live up to my own expectations, which is why I have learned to make peace with myself so I can start over and keep going.

—And as a Mexican living abroad?

I’m proud to be Mexican, which is maybe why I feel comfortable living abroad. Sure, the references to Frida [Kahlo] can get tiresome or if I wear something bright pink, people will try to justify it by saying I’m Mexican.

—If you could choose a gallery to exhibit your work, which one would it be?

Every year when I come back to Mexico, it’s gratifying to see more and more interesting and well-curated galleries and engaged artists. I’d like to exhibit more in Mexico. In fact, I have two galleries in mind in the Roma district of Mexico City.

—What’s next for Beatriz Morales?

I’m helping out with the artwork for a new restaurant that will be opening in March 2013 in the Roma district of Mexico City, on the corner of Jalapa and Guanajuato. It used to be a hardware store and I’ll be helping the architects create a space where the table is the central element, using organic and recycled materials from the original store and trying to strike a balance between them. n

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in the city’s Historic Center, is the route the floats traditionally followed but the songs, dancing and general merriment has spilled over onto Boulevard Manuel Ávila Camacho, to the extent that the carnival has garnered international fame.

There are several customs associated specifically with the Veracruz Carnival, like the naming of the Carnival Queen (who used to “parade” along the beach with her entourage, while the rest of the carnival-goers flooded the streets) and the King of Merrymaking, originally known as the Ugly King. On the first day of festivities, the ritual calls for a symbolic “burning” of Bad Mood, while the highlight of the ninth and last day is the “burial” of Juan Carnival, along with a reading of his last will and testament, which is generally packed with political jibes only locals could possibly understand.

An inseparable part of the identity of Veracruz, this is the largest carnival in Mexico, but no matter what time of year you happen to be in this port city, you can always enjoy a milk coffee at El Café de La Parroquia at Los Portales, a popular meeting point among locals and a must for visitors. n

A Brief History of…

The Veracruz Carnival

Every February for the last 88 years, the Veracruz Carnival has taken place during the nine days prior to Ash Wednesday, marking the beginning of Easter with a fiesta of music and color. ____ by maría josé esteva photos courtesy of carnaval de veracruz

T

he Veracruz Carnival is a tradition that dates back to 1866, when Mexico was ruled by Maximilian of Habsburg. The people of Veracruz asked their emperor for permission to hold a masked ball but as they made their way through the streets, they unwittingly sparked the curiosity of bystanders, who gathered on the sidewalks to admire their colorful outfits. Ever since, history has repeated itself year-in, year-out. In time, the parade itself came to take precedence over the costume party, and in 1925 members of Veracruz’s upper class formed an organizing committee. It is this date that is taken as the official founding of the Veracruz Carnival.

Two decades later, in 1945, the floats were illuminated, which meant festivities could carry on well into the night.

Occasionally, parades have been known to start at nine o’clock at night and continue until dawn. Avenida Independencia,

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Frida Escobedo An Architect Gone Public ____

by naomi palovits photos courtesy of frida escobedo

M

exican architect and urbanist Frida Escobedo (Mexico City, 1979) tends to focus on overlooked and neglected spaces, like roofs and basements, which she adapts or breathes new life into, adding a fresh, albeit transitory layer to the landscape.

In Escobedo’s view, the architectural object is in constant flux from its inception and, as such, is at once obsolete and a work in progress. It is this duality that confers it the functions of a mnemonic instrument, capable of recording the social and historical mood of a certain period.

Escobedo graduated from the Universidad Iberoamericana (UIA) in Mexico City with a degree in Architecture and Urbanism and holds a Master’s degree in Art, Design and the Public Domain from the Harvard Graduate School of Design (GSD).

The recent renovation of La Tallera in Cuernavaca, Morelos, Pabellón Eco 2010, and Hotel Bocachica in Acapulco,

Guerrero, are some of the notorious projects she has been involved in.

In the case of renovations at La Tallera, former home and studio of the Mexican artist David Alfaro Siqueiros, Escobedo opened up the patio so his murals could be viewed by passersby from a nearby public square. She was also careful to choose materials that reflected an economy of means and that blended in with the existing space. All covered with a trellis. Thus, the architect pulled off what many artists before her have attempted to achieve: turn a private space into a public one.

La Tallera has an exhibition hall, two storage rooms, two workshops, a bookstore, a coffee shop, a reading room and a document center, while the house where Siqueiros once received artists of the stature of Salvador Dalí was converted into a residence for visiting artists, curators and museographers.

In an interview with Negocios, Frida Escobedo shares her views on architecture and the spatial challenges modern cities face.

—As an architect, what motivates you?

I enjoy analyzing the processes and relationships that arise between the user, the space and its purpose, the passage of time and form.

—How would you define architecture?

One of my professors at Harvard, Sanford Kwinter, has a phrase that I think neatly sums it up: “Architecture is the discipline that speaks of the relationships between society and form.” That’s how I, also, would define it.

—How was your experience at Harvard?

The central theme of the program I took was spatial production in the public domain. It’s an interdisciplinary program, which meant I got to meet people from other disciplines like visual arts, design and cultural management.

Being exposed to such a wide cross-section of people forced me to broaden my views on the design, use and management of public spaces.

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—In 2003, you partnered up with Alejandro Alarcón to found Perro Rojo and since 2006 you’ve been working independently at your own firm. How is business doing?

The firm is gradually earning recognition at home and abroad, although it is still quite small. Most of our projects are independent ones, although sometimes I’ll partner up with other architects for specific projects.

For example, José Rojas invited me on board the Hotel Bocachica project and I worked with Rodolfo Díaz Cervantes on the Educal Library for the National Film House.

—How would you define your architectural style?

It’s hard to define your own work in terms of style. It depends on each specific project.

—Which project have you most enjoyed being a part of and why?

I’m always enamored with the project I’m currently working on.

—What are you working on right now?

A small boutique hotel in La Saladita, Guerrero, and a student housing complex in Puebla.

—What is your dream project?

I get a great deal of satisfaction from projects related to public spaces.

About La Tallera La Tallera was donated to the Mexican people by David Alfaro Siqueiros (1896-1974), along with a large collection of the artist’s paintings, graphic works, drawings, studies for murals and other projects, his personal archives and library. On December 12, 1973, just days before his death, Siqueiros said he wanted his home and studio to be preserved as vehicles for promoting his work and ideas and as centers for research and experimentation in the “public art” of the future.

—What do you think of the architectural styles Mexico is currently producing?

I think Mexico’s in a good place. There are countless young, proactive firms that are less interested in trends and more focused on processes.

—From a functional perspective, what would you say contemporary Mexican architecture is lacking?

Enormous progress has been made in this area, but I’d say we need to rethink our public transport system. Mobility is a problem in places like Mexico City. For some people, the daily commute to work takes about three to four hours. That, in turn, raises the issue of housing, especially government subsidized housing, which is something else that urgently needs to be addressed.

—What’s the best piece of advice you’ve ever been given?

Someone once told me only to take on projects I believed in, not to do things for recognition or money but out of conviction. n

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mexico according to

Ana Claudia Talancón

____

by naomi palovits photo courtesy of ana claudia talancón

A

native of Cancún, Quintana Roo, Ana Claudia Talancón made her big-screen debut alongside Diego Luna in The Comet with a performance that earned her an Ariel for Best Actress.

Killing Cabos, Ladies’ Night, The Crime of Father Amaro and Tear This Heart Out are just a few of the Mexican productions she has starred in, while her international filmography includes Fast Food Nation with Ethan Hawke and Bruce Willis, and Love in the Time of Cholera with Javier Bardem. One of the most sought-after actresses in her native Mexico and abroad, Talancón is currently preparing for season three of the television series she stars in, Soy Tu Fan. Negocios caught up with her at the premiere of El Sueño de Iván, the latest production by Spanish director Roberto Santiago, in which Talancón shares credits with last year’s Oscar nominee for Best Actor, Mexican Demián Bichir.

—What is your favorite place in Mexico to relax?

Cancún, Quintana Roo, which is the city where I was born and raised.

—Which is your favorite Mexican beach?

The beaches on the Mayan Riviera are my favorite, especially the ones on the Sian Ka’an Reserve near Punta Boca Paila in Tulum, also in the state of Quintana Roo. —What is your favorite Mexican dish?

There are so many, it’s hard to choose just one. But escamoles (ant eggs), chiles en nogada –especially the ones my grandmother cooks–, stuffed chili peppers and chilaquiles, are at the top of my list.

—Is there somewhere in Mexico every tourist should visit?

It depends on what they’re looking for, because there’s so much to see and do in Mexico. I’d recommend the beaches of the Mayan Riviera, Oaxaca and Puerto Vallarta.

—Which Mexican director do you most admire?

Alejandro González Iñárritu, Guillermo Arriaga,

Alfonso Cuarón, Carlos Carrera, Roberto Schneider and Gerardo Naranjo.

—Which Mexican actress do you most admire?

Elena Rojo, Salma Hayek, Sara García and Isela Vega, among many others.

—Which woman in Mexican history would you like to play?

Sor Juana Inés de la Cruz.

—Name a Mexican city or state that is on your “must visit” list…

The northern part of Mexico. I have never been to La Paz and Los Cabos, in Baja California Sur. I would like to go there and do some whale-watching.

—What do you miss most about Mexico when you’re abroad?

After my friends and family, the food.

—What do you love most about Mexico?

Our roots, our nature: we always give the best of ourselves. n

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LA PAZ Baja California

From Turquoise to Emerald Five Heavenly Beach Destinations in Mexico ____

by gabriela damián photos courtesy of the hotels

La Paz preserves the old world charm that made it the stuff of new world legend.

Its picturesque historic center has that traditional feel but this is a city that has opened its floodgates to international influences, especially when it comes to food.

The choices range from local eateries to prestigious restaurants that marry their dishes with the delicious signature wines the region is famous for. Known for its incredible scenery, swimming with the seals in the “world’s aquarium” –as Jacques Cousteau once referred to the island of Espíritu Santo– is an experience that will leave an everlasting mark.

Hideaway: Rancho Las Cruces When Cortés arrived here in 1535, he drove three crosses into the ground and declared Las Cruces to be its name. Today, guests at Rancho Las Cruces can see replicas of those crosses as they stand under the same sun and look out over the same sea Cortés conquered 478 years ago –something to think about as you stroll through the gardens and feel the sea breeze on your face. To make your stay even more relaxing, the guestrooms have chimneys, soft beds decorated with embroidered cushions and exquisite Talavera designs.

W

hat hasn’t been said about Mexico’s beaches? They rate high among the country’s natural attractions and are indubitably among the best in the world. Now it’s your turn to soak up five destinations that live up to a very seductive idea of paradise: beautiful sandy beaches, tranquil waters in every imaginable shade of blue, good music, great food, comfortable surroundings and unforgettable sunsets. In short, five beaches that have it all.

COSTALEGRE Jalisco One of the most breathtaking destinations in the Mexican Pacific, Costalegre nestles between the major tourist destinations of Puerto Vallarta, Jalisco, and Manzanillo, Colima. Its small sandy bays are separated by enormous rocks that create striking natural vistas and can be explored aboard small boats known as pangas. Quaint fishing villages continue to survive, seemingly unperturbed by the luxury hotels in the area, while small out-of-the-way beaches like Barra de Navidad make you feel like a pioneer charting virgin territory. If you enjoy water sports, this eco-tourism destination is right up your waterway!

Hideaway: Las Alamandas Beautiful and untamed, like the wild flower it is named after, this colorful hotel is one of Costalegre’s best kept secrets. The hideaway of choice of only the most discerning sybarites and the occasional celebrity, its inviting swimming pool is literally a hop, skip and a jump from the beach, which you can explore on horseback without coming across a soul. This is an ecofriendly destination, which means you won’t see any jet-skis causing ripples in these transparent waters and the fauna that inhabits the resort gardens is very well-protected. www.alamandas.com

www.rancholascruces.com

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HUATULCO Oaxaca It’s hard to believe pirates once caused mayhem in these warm, emerald green waters where tourists now practice water sports. Today, Huatulco’s nine bays and golden sand beaches are a refuge for the marine turtle, which is a protected species. This is one of the few tourist destinations in the country to boast sustainable resource management, and because it is part of the state of Oaxaca, it can also lay claim to an enviable cultural heritage, immediately tangible in the friendly attitude of the locals, the creativity of its arts and crafts and incomparable food.

Hideaway: Las Palmas Whether you choose to stay at Las Villas or Las Casitas, this resort guarantees a fun, luxury vacation for the whole family.

Its spacious suites and relaxing pools command spectacular views of the sun rising on the sandy beaches of Violín and El Faro. The hotel staff will be only too happy to help you program fishing or horse riding excursions, or even a guided tour to one of the nearby coffee plantations. www.laspalmashuatulco.com

TULUM Quintana Roo This ancient walled city –originally called Zamá in honor of the rising sun– stands strategically atop a cliff looking out over the turquoise waters of the Caribbean.

One of the most striking Mayan World sites, there is something for everyone here: the archaeological site and its thirteenth century temple dedicated to Venus, legendary cenotes, underwater caves and fascinating marine life that make for a diver’s paradise, tranquil beaches to sunbathe on, luxury spas to pamper body and soul, world class restaurants and a cosmopolitan atmosphere.

Hideaway: Mezzanine Nothing is as rejuvenating as a night at this modern boutique hotel. Picking your way through the menu at their Thai restaurant is as interesting as exploring the surrounding jungle and the Martini Lounge is the perfect place to relax after an adventure-packed day.

For the less intrepid, there are private yoga classes, or how about an open air massage in full view of the ocean? www.mezzaninetulum.com

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ISLA MUJERES Quintana Roo The magic begins as soon as you board the ferry at Punta Sam, in Cancún. Dolphins, turtles and shoals of brightly colored fish accompany your boat for the 45 minutes it takes to reach the island. Nature lovers will want to visit El Garrafón, a park that offers activities like scuba diving, snorkeling, kayaking and sea trekking but Isla Mujeres also boasts world class restaurants and stores. Archaeological evidence suggests that Ixchel, the Mayan Moon Goddess, was worshiped here, and it’s not hard to understand why: as soon as darkness falls, she dominates the night sky.

Hideaway: Casa de los Sueños What better place to stay than a hotel that embodies the island’s dream-like atmosphere, with tranquil, airy guestrooms decorated in chic Mexican-Caribbean style? The common areas are perfect for a moonlit party or you can rent a golf cart and explore the island. And to wind down, how about an oceanside spa treatment? www.casasuenos.com