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The Mexican mining industry finds itself in a complex position and therefore its future remains uncertain. On the one hand, larger demand for metals and higher prices are benefiting the industry. On the other hand, the industry continues to face political and legal uncertainty, as well as lack of incentives. The future of the Mexican mining industry will depend on the business and political leaders who are currently reshaping it. At Mexico Mining Forum, we bring together key leaders that exchange information, experiences, knowledge and proposals aimed at finding solutions to overcome the sector’s main challenges and connect with financiers, consultants and suppliers. Mexico Mining Forum 2022 brought together 384 industry leaders representing the main companies in the sector, to share their perspective and insights into one of Mexico’s main industries while generating business through unparalleled matchmaking opportunities. Mexico Mining Forum 2022 ECHO, later in the year, will continue to maximize the impact of our conferences for our participants, speakers and sponsors. Our conference program is designed to provide an insider’s perspective on top industry topics so leaders can make better decisions and drive the industry forward. We look forward to seeing you at the next forum and helping you achieve your business and strategic goals!
4
C onfe r ence I mpact
163
Breakdown by job title
companies
384
conference participants
34% 19% 17% 13%
Manager Director CEO/ Director General Associate/ Executive/ Coordinator 11% Geologist/ Engineer/ Analyst 6% President/ Board Member
67
speakers
8
sponsors
6,666 visitors to the conference website
Conference social media impact 13,808 direct impressions during MMF
Pre-conference social media impact 74,623 direct pre-conference LinkedIn impressions
2.57% click through rate during MMF
2.86% pre-conference click through rate
4.92% conference engagement rate
4.17% pre-conference engagement rate
Mexico’s leading B2B conference organizer introduces the world’s leading event networking platform. Delivering intent-based matchmaking powered by Artificial Intelligence that connects the right people. Network, no matter where you are.
269
Participants
Matchmaking intentions
837
matchmaking communications
86
1:1 meetings conducted
1,376 Trading Total
2,836
1,060 Networking 304 Investment 96 Recruitment
5
C ompan y Attendance
•
3M
•
Desarrollos Rod
•
ABB México S.A. de C.V.
•
Dirección de Minas Zacatecas
•
Agnico Eagle
•
DRG Technologies
•
Ak Comunicación
•
Driver Industrial
•
Alamos Gold
•
Dumas
•
Alien Metals Ltd
•
Dynapro Pumps
•
Almaden Minerals / Minera Gorrión
•
Eagle Mapping
•
Altaley Mining Corporation
•
EC RUBIO
•
Anmark
•
ECN Automation
•
Aosenuma
•
El Palacio de Hierro
•
Argonaut Gold
•
Electro Metalic Solutions
•
Arizona Trade and Investment Office in Chihuahua
•
Embassy of Canada
•
AUSTIN BACIS SA DE CV
•
Emerson
•
Austin Powder Mexico
•
EMPRESAS SEIJO
•
Baluarte Minero
•
Endeavour Silver Corp
•
Baramin
•
Epiroc Mexico
•
Beumer de Mexico, S de RL de CV
•
Equinoxgold
•
BL Law
•
Exterran
•
Blaw
•
Fervim Ingenieria sa de cv
•
Bureau Veritas Minerals
•
First Majestic Silver Corp
•
Bylsa Drilling
•
Gcsc
•
Call & Nicholas, Inc.
•
Getman
•
Camimex
•
Glencore Canada
•
Canadian Chamber of Commerce in Mexico, MTF
•
Gobierno Baja California Sur
•
Canuc Resources Corp.
•
Gobierno de Coahuila
•
Capwatt Mexico
•
Gobierno de Ontario en Mexico
•
CEM
•
Gobierno del Estado de Michoacán
•
CEMENTATION MINING MEXICO SA DE CV
•
Golder
•
Centric Mining Systems
•
Government of the state of sinaloa
•
Chesapeake Gold
•
GR Silver Mining
•
CIRCUTOR México, Centro América y Caribe
•
Green Geology
•
Cluster Minero de Chihuahua A.C.
•
Benjamin Hill
•
Colegio de Ingenieros de Minas,
•
GRUMINEX
Metalurgistas y Geólogos de México
•
Grupo Industrial FIMCA
•
COMEDORES INDUSTRIALES
•
Grupo México
•
Compañía Minera Cuzcatlán
•
Grupo Minero COPLAZA S de RL de CV
•
CR Legal Partners
•
Guanajuato Silver
•
CyPlus Idesa
•
Hanwa American Corp
•
Defiance Silver Corp
•
Hito Exploration, Camping & Catering
•
Delegación de Quebec en México
•
Delta Radiocomunicación, S.A. de C.V
Services S. De R.L. De C.V. •
Iberdrola
6
C ompan y Attendance
•
Impact Silver Corp.
•
RER Energy Group
•
Independent Consultant
•
Reyna Silver Corp.
•
INERCO
•
Riverside Resources Inc.
•
International Business Solutions
•
Robit
•
IPADE
•
SANTACRUZ SILVER MINING
•
IPEC Ingeniería SA de CV
•
Santamarina y Steta
•
IPMC Ghana
•
Sapuchi Minera - Osisko Development
•
Jemini Capital
•
Secretaria de Economía
•
Kepler
•
SEFAR
•
Kootenay Silver
•
Seijo Explosives
•
Koura
•
SEMARNAT
•
KPMG
•
Servicio Geológico Méxicano
•
MAG Silver Corp.
•
SGS Mexico
•
Magna Gold Corp
•
SIEMENS
•
Maza Drilling
•
Silver crest
•
MexicoView
•
SKF Mexico
•
Minaurum Gold Corp
•
Skyline Assayers & Laboratories
•
Minera Adularia Exploracion
•
SME
•
Minera Cuzcatlan SA de CV
•
Sonoro Gold Corp.
•
Minerales
•
Source Global
•
MINERALES DE TARACHI
•
Spencer Stuart
•
Ministry of Energy and Water Resources
•
SSAB
•
MITSUBISHI ELECTRIC AUTOMATION INC
•
Steps up consulting
•
Molina, hanff & Perez-howlet, S.C
•
SWEDISH STEEL AB MEXICO
•
Moody’s Investors Service
•
TAHG
•
Multiled
•
TAKRAF
•
Natural Resources Canada
•
TAKRAF Canada
•
New Zealand Trade & Enterprise
•
Tarachi Gold
•
Newmont
•
TBM
•
O’Gorman&Hagerman
•
Torex Gold Resources
•
ONU-UNECE
•
TORONTO STOCK EXCHANGE &
•
Orex Minerals Inc.
•
Orla Mining Ltd.
•
Vera & Asociados
•
Osisko Development Sapuchi Minera Division
•
VICTAULIC
•
Outlet Minero
•
Vizsla Silver
•
Pan American Silver Mexico
•
VMX MinePro
•
Peña Colorada
•
Vmx Minepro SA de CV
•
Peñoles
•
Walworth
•
PETRON CORPORATION
•
Weir Minerals Mexico
•
PORTAL NOTICIOSO SONORAALDÃA.COM
•
WorldWise Coaching LLC
•
RB MEXICO LAW-ABOGADOS
•
WSP
TSX VENTURE EXCHANGE
7
P r og r am D ay 1 09:00
MEXICO MINING’S PRESENT AND FUTURE
Speaker: Efraín Alva Niño, Ministry of Economy 09:30
LEGAL CERTAINTY: HOW TO MINIMIZE RISK AND BOTTLENECKS
Moderator: Ruben Cano, CR Legal Panelists: Pablo Gutiérrez De la Peza, O’Gorman & Hagerman Enrique Rodríguez del Bosque, RB Abogados Mariano Calderón, Santamarina y Steta Andrés Pérez Howlet,, Molina, Hanff & Pérez-Howlet 10:15
REPUTATION: RESPONSIBLE MINING AND EFFECTIVE COMMUNICATION STRATEGIES
Moderator: Christopher Ávila Mier, Baluarte Minero Panelists: Angie Robson, Torex Gold Resources Inc Alfredo Phillips, Argonaut Gold José Jabalera Batista, Mexican Ministry of Economy Luiz Camargo, Minera Cuzcatlán 11:00
NETWORKING OPPORTUNITY - AI-POWERED 1:1 MEETINGS
12:00
MINING MARKETS UPDATE
Speaker: Dean McPherson, TSX 12:15
MINERAL PRICES, MINING INVESTMENT AND FINANCIAL OUTLOOK
Moderator: Dean McPherson, TSX Panelists: Andrew Snowden, Torex Gold John Darch, Sonoro Gold Etienne Morin, Orla Mining Ltd Jerry Huang, Impact Silver 13:00
MINING LEADER PERSPECTIVES SUCCESS FACTORS IN MEXICO
Moderator: Jennifer Burge, WorldWise Coaching & Training LLC Panelists: Nancy Morales Arango, Bureau Veritas Minerals Jonathon Bell, Dynapro Pumps Mexico Fernando Alanís, CAMIMEX Cynthia Villa, Gruminex 14:00
NETWORKING OPPORTUNITY - AI-POWERED 1:1 MEETINGS
15:00
EXPLORATION SUCCESS STORY: BYLSA DRILLING
Speaker: Macario Rocha, Bylsa Drilling 15:20
EXPLORATION SUCCESS STORY: GR SILVER
Speaker: Marcio Fonseca, GR Silver 15:40
EXPLORATION SUCCESS STORY: SONORO GOLD
Speaker: Kenneth McLeod, Sonoro Gold 16:00
EXPLORATION DECISION-MAKING, TECHNOLOGY CHOICES AND SUPPLY CHAIN COOPERATION
Moderator: Lauren Megaw, Reyna Silver Panelists: Magda Orozco, Maza Drilling Ben Whiting, Orex Minerals Viridiana Lagarda, Bylsa Drilling Michael Konnert, Vizsla Silver
7
P r og r am D ay 2 09:00
INSIGHT INTO MEXICO’S TOP MINES
Moderator: Karen Flores, CAMIMEX Panelists: Faysal Rodriguez,, Torex Gold Resources Mexico Rafael Rebollar, Industrias Peñoles Peter Hughes-Hallet, Newmont Mexico Jaime Gutiérrez Núñez, CAMIMEX 10:00
STATE OF THE INDUSTRY IN SINALOA
Speaker: Felipe Ibarra Retamoza, Government of Sinaloa 10:15
MEXICAN MINE DEVELOPMENT PROJECTS TO WATCH IN 2022
Moderator: Douglas Cavey, Defiance Silver Corp Panelists: Forbes Gemmell, Discovery Silver Corp. James Anderson, Guanajuato Silver Mehran Bagherzadeh, Riverside Resources Kenneth McLeod, Sonoro Gold 11:00
NETWORKING OPPORTUNITY - AI-POWERED 1:1 MEETINGS
12:00
STATE OF INDUSTRY IN DURANGO
Speaker: Gustavo Kientzle Baille, Government of Durango 12:15
AUTOMATION, DATA-DRIVEN DECISION MAKING AND SUPPLY CHAIN MANAGEMENT
Moderator: Monica Samudio, Circutor Panelists: Hugo Barrientos, Emerson Erik Flores, Mitsubishi Alvaro Rendón, ECN Automation Eder Lugo, Siemens 13:00
REINVENTING THE USE OF STEEL IN MINING
Speaker: Jorge Garduño, SSAB Speaker: Arturo Rivas, SSAB Speaker: Tomás Falcón, SSAB 14:00
NETWORKING OPPORTUNITY - AI-POWERED 1:1 MEETINGS
15:00
MINING OF THE FUTURE: HARNESSING TECHNOLOGY TO OPTIMIZE SAFETY
Moderator: Herman Dittmar, Baluarte Minero Panelists: Adrián Márquez, VMX Mine Pro Mexico Felipe Martínez, ROBIT PLC Jorge Luis Cristerna, Multiled Mexico Arturo Rivas, SSAB Alfredo Bertrand, Epiroc Mexico 15:45
MINING PANORAMA AND CLUSTER OF CHIHUAHUA
Speaker: Pablo Mendez, Mining Cluster Chihuahua 16:00
ESG: CREATING POSITIVE IMPACT FOR COMMUNITIES AND THE ENVIRONMENT
Moderator: Ana Mallen, ESG Senior Consultant Panelists: Yuren castillo, Golder WSP Bradford Cooke, Endeavour Silver Cristina Rodríguez, Minera Cuzcatlán Melissa Sanderson, Mel Sanderson Consulting Ulises Neri, ONU Mexico
8
C onfe r ence H ighlights MINING’S IMPORTANCE IN THE PRESENT SET TO EXPAND IN THE FUTURE If the last two years have proven the
The question of conflict resolution also plays
resilience of Mexico’s mining industry, then
an important role in the functions of the
the years to come will prove its central
unit. Alva Niño explained they had received
importance to the country’s economy and
direct orders from the leader of the Ministry
prosperity, said Efraín Alva Niño, a central
of Economy, Tatiana Clouthier, to intervene
figure in the sector’s current landscape.
and accelerate all conflic t resolution proceedings within the mining industry.
Alva Niño is the Director of the Extractive
These conflicts are generally related to labor
Industries Unit at the Ministry of Economy,
and legal matters or to ESG factors, such as
cre ate d in A p ril 2 02 1 to re p la ce th e
the relationships between mining operators
Underministry of Mining, eliminated in 2020.
and local communities. Alva Niño said the
Due to its recent creation, for Alva Niño the
unit views local communities as central to
promotion of the industry and its image for
the work of the mining sector. “The mining
the purposes of attracting investment are a
industry does not work alone. Community
big part of his present role. Alva Niño made
support will always be vital.”
this clear when he proclaimed that “Mexican miners are recognized as some of the best
In regards to the industry’s present state,
worldwide.”
Alva Niño emphasized the industry qualities that came to bear on its operations when
A l v a N i ñ o a l s o s t a te d t h a t h i s u n i t
the pandemic began in 2020. “Mining has
h a d a n i nte re s t i n cl a rif yi n g ce r t a i n
been one of the central supports of Mexico’s
misunderstandings that were “usually
economic recovery following the pandemic”
poured into the general population” which
after the industry was declared an essential
negatively impacted the image of the
economic activity and allowed to restart its
Mexican mining industry and made it more
activities in May 2020, right after the first
difficult to recognize that the country is
COVID-19 cases were reported in Mexico.
one of the best destinations for mining
He noted that as many as 40,000 jobs
investment. “In spite of the fact that mining
have been created by the mining industry
in Mexico is strongly legislated and in spite of
since then. Alva Niño also emphasized
the heavy tax burden that has to be covered
that by sustaining its mineral production
by the sector, the international industry has
throughout the pandemic, the mining
always recognized that the Mexican mining
industry played a role in sustaining many of
landscape is highly attractive.”
Mexico’s other industries and their supply chains which depend on those minerals as basic raw materials and feedstocks.
“This list has to be dynamic, not fixed; the minerals that could be classified as critical to the energy transition now might be irrelevant three to five years down the road because of the speed with which the energy industry is innovating its own technologies and processes ”
Efraín Alva Niño Director of the Extractive Industries Unit at the Ministry of Economy
In Alva Niño’s view, the mining industry’s handling of the pandemic, as well as the many additional processes that it burdened workers and operators with, demonstrated a unique capacity for adaptability and flexibility. “Centers of mining activity in Mexico’s mountainous regions became like bubbles of protection against COVID-19 co nt a g i o n s .” T h e i n d u s tr y ’s i s o l ate d conditions allowed safety and hygiene protocols to be developed and supervised in a sophisticated way, which in turn led other industries to replicate the mining
9
C onfe r ence H ighlights industry’s approach to managing working
increasing investment in mining exploration.
environments throughout the pandemic,
In his view, additional incentives will be
said Alva Niño.
needed for investment in exploration activities to reach the levels that will satisfy
While these developments have been crucial
the industry’s future needs. In his interview
to the industry’s present-day success and its
with MBN, Alva Niño also made clear that
contributions to Mexico’s economic welfare,
the conditions which were preventing more
Alva Niño emphasized that they would play
investment from entering the industry
an even larger role in the industry’s future.
were in part related to the availability of
He also argued that the mining industry was
information. “The lack of legislative certainty
about to play an even larger role in Mexico’s
has kept investors on edge. The legislative
future given that “the mining industry will
situation in our country must be improved
be a key pillar in the energy transition.” Alva
through the provision of more information.”
Niño referenced the controversial language included in the recently proposed electricity
Alva Niño believes that this kind of work
reform that states that any mineral that
can be done within the context of the
could prove “crucial” to Mexico’s energy
government’s current policy to stop issuing
transition be considered as a “strategic
new permits and concessions. As he stated
resource” that could be nationalized at any
at the time, “unfortunately, there is a
time. While Alva Niño did not make any
presidential order to stop mining permits.
allusion to the political process surrounding
However, and this is where we come in,
this law or the implications of nationalizing
while we understand that there will be no
any mineral, he did note that his unit
new mining permits for the time being, we
was involved in the creation of this list of
are asking the government to allow us to
minerals. “This list has to be dynamic, not
work on the ones we already have. That
fixed; the minerals that could be classified
is what we are working on, in addition to
as critical to the energy transition now
lithium explorations and tax reductions.”
might be irrelevant three to five years down
His outlook on the positive role that the
the road because of the speed with which
unit can play in the industry’s future remains
the energy industry is innovating its own
positive. “We understand mining is a core
technologies and processes.”.
part of a country’s development efforts. Our commitment is to communicate the
Alva Niño explained that all future national
benefits of mining and the high quality of
endeavours could not be secured without
the Mexican mining industry.”
GOOD PRACTICES, RELATIONSHIPS KEY TO INCREASE LEGAL CERTAINTY The Mexican mining industry has faced
to materialize. Contradictory messages
several challenges over the past few years.
from the government have become one
Restrictions on new concessions and delays
of the main concerns for industry leaders.
in permits have fostered an environment
This uncertainty is part of the reason why
plagued with legal uncertainty. Establishing
the country has not met its investment
good relationships with authorities and
expectations, according to Rubén Cano,
communities, along with a strong due
Founding Partner, CR Legal. In 2021, the
diligence on documentation and land
sector attracted US$4.246 billion, which
rights, is key for companies to counter this
was higher than in 2020 but 15.6 percent
uncertainty and thrive in Mexico, agreed
below the US$5.03 billion expected for the
industry experts.
year. “When the terms and conditions of an agreement are changed unexpectedly,
Mining is a capital-intensive activity and
investors are scared away,” Jaime Gutiérrez
returns on investments can take years
Núñez, President, CAMIMEX, told MBN.
10
C onfe r ence H ighlights The lack of concessions and permits is
Certainty, however, does not only come from
impacting the arrival of new investments and
external factors like government decisions.
even driving away certain companies with
Companies must also be certain about the
projects in Mexico, leading to a potential loss
conditions under which they do business
of US$25 billion, MBN previously reported.
to avoid any unfavorable outcomes. Pablo
Still, even though concessions have not been
Gutiérrez De la Peza, Managing Partner,
granted since the beginning of President
O’Gorman & Hagerman, highlights the issue
Andrés Manuel López Obrador’s term,
of land rights as something to keep in mind
there are certain mechanisms that can allow
when starting a project in Mexico. Given
companies to approach the government
the particularities of land regulation in the
in a more favorable light, as long as they
country, companies need to understand
comply with the requirements established
the land, its legal standing and geographic
by the government, said Mariano Calderón,
characteristics, while making sure that
Partner, Santamarina y Steta.
documentation is truly valid to exercise their right over it.
“The key to success is learning about these legal requirements, procedures and steps
While there might not be many issues with
to negotiate based on legal certainty and
public or private property, Mexico also
rule of law. Mining activities are highly
grants land rights under the figure of social
regulated and supervised by authorities,
property, which includes ejidos and agrarian
but obligations are reciprocal. The authority
communities, which give entire communities
has a duty to act in accordance with the
rights over land. This type of property
legal framework and companies have the
represents approximately 53 percent of
right to receive a well-founded response
the total territory, according to INEGI. “We
in accordance with the applicable legal
recommend companies to always check the
framework,” Calderón said.
validity and accuracy of any documentation regarding the land they are about to enter.
“Carrying out a thorough consultation with indigenous communities, diligently and in compliance with legal requirements, could be key to understand if a project would be viable or simply impossible to carry out ”
Mariano Calderón Partner | Santamarina y Steta
Are documents filed in the public registry or are they issued by the communities themselves? Do they correspond to the actual land that the company expects to use and are they subject to any legal disputes? Understanding this and being prepared can help companies to devise strategies to respond to any claims that may come,” said Gutiérrez. Applying for a concession and drafting the related legal procedures may seem to be
“The first step is to find a good lawyer. It is
the first logical steps when deciding on a
important to work on an in-depth analysis
new investment project. However, local
re g a rding le g a l ce r taint y, re g ulatio n
and indigenous communities play a key
compliance and how changes in regulation
role in the success or failure of a project
have impacted previous ventures. Any
and must be taken into account, agreed
potential investor must be aware of all of
experts. “Companies must investigate the
this. A political analysis is also necessary to
communities where they are planning to
understand what is behind the government’s
invest to know if they are welcoming to
decisions, so that there are no surprises or
these kinds of projects. Mining, if done right,
unsatisfactory deals,” said Andrés Pérez-
can bring great benefits to communities.
Howlet, Managing Partner, Molina, Hanff &
However, it can also face rejection as social
Pérez-Howlet.
and environmental conditions are altered,”
11
C onfe r ence H ighlights
RB Abogados.
Expropriation Should Not Be a Risk Factor
“Carrying out a thorough consultation with
Expropriation, commonly understood as a
indigenous communities, diligently and in
government taking over privately owned
compliance with legal requirements, could
property to be used for the benefit of the
be key to understand if a project would be
population, exists in Mexico as well as in
viable or simply impossible to carry out,” said
many other countries. While it became a
Calderón. Mining lawyers have had to expand
“fashionable topic” due to contradictory
their portfolios to include these types of
messages from the government, this must
social negotiations, said Pérez-Howlett. “The
not be cause for divestment, as Mexico is
community must be convinced that the mine
part of a large number of international
will bring benefits and that people will be
treaties, including USMCA, said Rodríguez
a part of the mining project. (They should)
del Bosque. Besides this, there are also
consider the project a driver of human,
local mechanisms in place to protec t
economic and social development for the
companies. “ Expropriation has always
community.”
been an available tool for the government,
said Enrique Rodríguez del Bosque, Partner,
but it is not absolute nor without its limits; For Cano, it all comes down to compliance.
it must meet certain requirements and it
“Mining companies must set an example when
must be properly justified,” said Calderón.
it comes to compliance. In the end, rule of law is not only defined by the government but by
Rodríguez highlights the fact that even
all industry participants,” he said.
under the current circumstances, Mexico remains a countr y with legal stability.
The mining industry has been subject to
“Should the government reach such an
bad press and constant misconceptions
extreme, there are defense mechanisms
regarding its social and environmental impact.
to oppose it. It is not something people
Compliance and a strong communication
s h o u l d wo r r y a b o ut to o m u c h ,” s a i d
strategy that focuses on this can be key to
C alderón . Still, Rodríguez del Bosque
counter these ideas, which is also true when
calls for stronger mechanisms that ensure
approaching local communities. “If we do not
rule of law prevails. “The legal framework
properly communicate the benefits of the
h a s g a ps , so we n e e d m o re e ffi ci e nt
industry, it is easier for negative messages to
mechanisms that allow companies and
permeate communities, which may lead to the
citizens to enforce this framework.”
rejection of the project.”
COMMUNICATION STRATEGIES BATTLE MINING MISCONCEPTIONS Communication strategies have become a
Industr y exper ts gathered to discuss
pressing issue for the mining industry as
how to handle these issues during the
Article 2 of the Mexican Constitution as
“ Reputation: Responsible mining and
well as Convention 169 of the International
effective communication strategies” panel
Labour Organization and the United Nations
at the Mexico Business Mining Forum 2022.
Declaration on the Rights of Indigenous
Christopher Avila Mier, Deputy Director of
Communities require mining companies to
Government and Institutional relations for
receive approval from local communities in
Baluarte Minero asked industry experts
rural areas in order to carry out projects. As
a b o ut th e im p o r t a n ce of a d d re s sin g
such, many industry misconceptions need to
misconceptions with transparency with
be addressed while the prolonged efforts
communities and the government. Panelists
to limit the impact of the industry on the
also shared their thoughts regarding the best
environment and nearby communities must
strategies to communicate the benefits of
be better communicated.
the industry, the missing key for the general
12
C onfe r ence H ighlights
public to see the industry’s responsibility,
Camargo also recognized the progress
main misconceptions and ways the sector
the industry has made in the last decades.
can improve its public image.
Particularly, the way in which the industry was able to help by providing funds to
Angie Robson, VP Corporate Affairs and
cover health efforts during the COVID-19
Social Responsibility at Torex Gold, pointed
pandemic in Mexico´s rural areas. A common
out the company´s impact on Guerrero
misconception is that mining companies do
communities since they have become the
more harm to communities than the many
country’s second biggest gold producer with
benefits they provide them. For instance,
99 percent of its workforce coming from
regarding water contamination, Minera
Mexico. For their Media Luna project, Torex
Cuzcatlán avoids contamination through
has provided “Agreements with each of
efforts provided by a treatment plant before
the communities surrounding our projects,
returning water to local rivers. Camargo
each have their own elected committees to
emphasizes that by following three main
help define agreements according to their
pillars: transpare ncy, communic ation
own needs.” Torex invested US$5 million
and stake of holders, particularly in the
for the construction of churches, schools,
communities, the industry can continue
healthcare facilities and water facilities
evolving in the right direction.
for the benefit of these communities after they found what the communities needed
J osé Jabalera , G eneral Direc tor of
instead of providing benefits based on
M in e r D evelopm e nt at th e M inistr y of
what the company thought would be best.
Ec o n o my, h o n e d i n o n th e o r i g i n of
This communication made the difference,
these misconceptions by mentioning the
explained Robson.
recognition of past negative impacts the industry has had on local communities as
Luiz Camargo, Country Manager forMinera
an important factor to move past them.
Cuzcatlán, said its operations ´s in Oaxaca
Mining companies must now “Hire local
and Guerrero are some of the most complex
people, local people know traditions ,
areas because of the large number of
culture…you are a new neighbor, you
municipalities. One project can impact 3 or
n e e d to b e info rm e d o n p a s t minin g
4 municipalities. The best way to manage
projects and local needs,” said Jabalera.
these relations is to then be transparent,
He also believes surveys and hard data
empathetic with the community and truly
are needed to measure the true positive
enter these municipalities to understand
impact community efforts are having on
their needs, explained Camargo.
local individuals.
13
C onfe r ence H ighlights Jabalera also shared his thoughts on the
Gold, spoke of a recent doctoral thesis
“disappearance” of the mining fund. “The
realized by the University of Sonora in
mining fund did not disappear. The mining
which the issue of logic behind what
fund as we know it moved to other ministers
com pa nies d o with com m unities was
or programs.” Jabalera said the mining fund
analyzed. “CSR usually focuses on what
is being used to improving schools and the
the companies are interested in , real
health ministry. “We are working with the
fo cu s s h o u l d b e o n e m p owe ri n g th e
education and public health ministers to put
communities,” Phillips said. Phillips noted
the mining communities first.”
that successful programs are those that are focused on understanding the community
Alfredo Phillips, Vice President Corporate
requirements instead of pushing forward
Affairs & ESG and Director for Argonaut
company beliefs.
MINING MARKETS SET TO EXPAND 2021 TRENDS INTO 2022 Market trends that experienced significant
percent of the mining equity raised between
transformations in 2021 are likely to define
2016-2022 was through TSX/TSXV while 52
the course of 2022 for international mining
percent of global financing in mining in the
companies and investors, according to
same period was also through TSX/TSXV.”
market expert Dean McPherson When directing his expertise towards As Head of Business Development for the
th e curre nt state of mining market s ,
Global Mining division of both the Toronto
McPherson identified five market trends that
Stock Exchange and the TSX Venture
experienced definite change in 2021 which
Exchange, McPherson’s experience within
would likely show up again as leading factors
the mining industry’s investment climate is
in investment decisions for 2022. The first
quite extensive. His experience is particularly
one was the market interest in ESG, which
applicable to the movement of Canadian
McPherson characterized as “becoming
and American investments into mining
front and center of the investment decision
jurisdictions in emerging and developing
center in 2021, and will likely continue
economies, such as those located in Latin
to play that role and take a leading role
America. “Latin America is our second
in investment decisions in the sector in
largest region in terms of presence, with
2022.” McPherson explained that mining
Mexico taking the largest representation.”
companies were responding positively to
In terms of magnitude, the investments that
inquiries investors and the exchanges were
go through the McPherson’s exchanges
making into their ESG practices, centering
rank fourth in capitalization, having raised
them within their business plans to address
US$56.9 billion in 2020, only surpassed by
all concerns that could limit or qualify
the US, UK and Hong Kong stock exchanges.
investment decisions. These inquiries were
The size of these investments is particularly
severely accentuated in 2021 and were
relevant to the global mining landscape,
likely to continue impacting the industry’s
as McPherson is quick to emphasize: “37
course in 2022.
“In 2021, 80 new mining companies listed, compared to 57 in 2020. Equity capital
The second trend places emphasis on environmental concerns and the impact surrounding climate change. 2021 was
raised went up to US$10 billion against
a key ye a r fo r th e minin g in d u s tr y ’s
US$7.5 billion in 2020 ”
environmental awareness, as McPherson
Dean McPherson
notes that a number of key declarations
Head of Business Development - Global Mining | TSX
and dialogues that took place in COP26 identified the industry’s key role in both the global carbon footprint as well as the
14
C onfe r ence H ighlights energy transition that will prove necessary
jurisdiction characterized by companies
to address it. Additionally, global emission
that “used to work exclusively within their
reduction targets are likely to drive an
national borders but are now expanding and
acceleration in demand for metals involved
diversifying, particularly into markets in the
in the manufacturing of batteries, electrical
Americas.” This trend is partially illustrated
infrastructure and EV components
by the activity in the exchange in terms of
throughout 202 2 . As a result, mining
new company listings, which McPherson
investors will be spending the year favoring
describes in positive terms: “In 2021, 80 new
projects that can promise both an approach
mining companies listed, compared to 57
that could reduce the carbon footprint of
in 2020. Equity capital raised went up to
mining operations while simultaneously
US$10 billion against US$7.5 billion in 2020.”
prioritizing metals and minerals listed as applicable to the development of green
The fifth and final trend concerned the
technologies and products.
impact of the pandemic, which McPherson predicted would continue to be a top-of-
The third trend is commodity prices being
mind concern for investors throughout
driven by the current relationship between
this year. While 2021 radically changed
base metal supply and demand, which was
the outlook on this issue when compared
significantly unbalanced in 2021 in a way
to 2020, th e re is still a f un da m e ntal
that will continue to create a number of
c aution to how the market perceives
opportunities for investors well into 2022.
the effect of COVID-19, especially after O m ic ro n h a s re p lic ate d so m e of th e
The fourth trend is the rise in M&A activity
shutdown procedures that characterized
that was very much talked about in 2020 and
the pandemic’s early stages. In this sense,
2021 continuing into 2022 as competition
McPherson believes that “volatility will
to secure supply lines that became fragile
continue to loom large over the mining
in the pandemic increases. McPherson
markets, despite the stability of other
provided the example of Australia , a
factors that underpin it.”
PRECIOUS, BASE METALS COULD PROVIDE SHELTER FROM VOLATILITY As geopolitical factors continue to turn up
Dean McPherson, Head of Business
the heat for investors in terms of market
Development for Global Mining at both the
volatility, some of Mexico’s key mining
Toronto Stock Exchange and TSX Venture
operators and industry analysts advocate
Exchange, presented a dialogue that “seeks
in favor of both precious and base metals as
answers to two key questions: what are the
an effective protection against this volatility.
factors that are impacting metal prices, and how can those factors create opportunities to build a robust business plan that can help avoid market volatility.” Jerry Huang, CFO, Impact Silver, advocated in favor of the advantages provided by silver ventures using his own project as an example, which he characterized as a “mid-tier cap” project that was nonetheless globally competitive in the precious metals context due to its yield given its status as a “pure silver” project. Huang said that there are simply not that many pure silver mines and assets out there
15
C onfe r ence H ighlights in the global investment market, and that in
warnings, Darch was clear regarding Mexico
the coming years this would make the value
as a jurisdiction in which these investments
of silver increase in a reliable fashion as the
could find a safe haven, despite political
difficulties inherent to both its exploration
risks that could be identified in Mexico’s
and processing became more obvious and
latest mining policies. “Project financing
its applications in multiple industries, many
for Mexico might not be easy, but it might
of them crucial to the energy transition,
prove comparatively easier when compared
continued to rise.
to other jurisdictions.”
“I truly believe silver is underpriced given
The question of political risk was further
how much it costs to find it and its role
emphasized by Carlos Díaz de la Garza,
in multiple industries,” said Huang. While
CEO, Moody’s de Mexico, who noted that he
other metals like lithium attract more
has been aware of uncertainty coming from
media attention for being critical to the
investors who are concerned about the role
development of green energy technology,
of lithium in the electricity law still pending
the use of silver in solar panel manufacturing
review by Mexico’s legislative chambers.
alone was enough, in Huang’s view, to
H oweve r, this was only on e of ma ny
make it a competitive player in the race to
factors that included conditions imposed
capitalize on mining investment through the
by the USMCA and the relative status of
energy transition.
competing jurisdictions in the region which experienced elections and other impactful
John Darch, Chairman, Sonoro Gold, agreed
political processes in 2021 and 2022, such
with Huang’s enthusiasm for the potential
as Peru and Chile. He also agreed on the
of precious metals as a safe investment,
importance of precious metals, noting that
saying that despite his obvious bias in favor
“within the current context of inflation and
of gold, “the big opportunity for Mexico lies
high interest rates, precious metals like gold
in silver, copper and lithium, as we move
become safe havens for investors.” Díaz de
toward a green energy transition.” Darch
la Garza pointed out that commodity prices are expected to exceed historical levels for
“Before we look at what metal is considered a safe haven for investors, we need to see what asset class can perform well during times of uncertainty. Precious metals have historically performed well during challenging times, especially gold ”
most metals throughout 2022, with supply chain constraints translating into very rapid recoveries of any dip in demand. “In conjunction with low inventory levels, we expect prices to continue to be affected in a positive way.” Arguing in favor of the equal importance
Etienne Morin
of base metals we find Andrew Snowden,
Chief Financial Officer | Orla Mining Ltd
CFO, Torex Gold, and Etienne Morin, CFO, Orla Mining. Snowden said that Mexico continues to be an attractive jurisdiction and a safe destination for investments due to its
explained it was important to be clear on
connection to both precious and base metal
the multidimensional levels inherent to the
projects, noting that “Mexico is already a
factors that increased market uncertainty.
Top 10 producer of gold, silver and copper,
“Uncertainty could be traced back to these
so it can leverage those to benefit from the
larger questions related to international
energy transition.”
conflicts, to interruptions in supply chains that could be caused by those conflicts or
Snowden said he “gets most excited about
by the pandemic, or by trends in political
copper” not only because his company is
risk, such as a skewing toward nationalism
developing an underground mine that could
and resource sovereignty.” Despite these
produce significant amounts of this metal,
16
C onfe r ence H ighlights but because the role of copper in the energy
Morin said that gold, historically speaking, has
transition is enormous. “Copper represents
always been a reliable shelter for investors
10 percent of the weight of every EV battery
during volatile markets. “Before we look at
that gets manufactured, and that is without
what metal is considered a safe haven for
counting the extensive wiring that goes into
investors, we need to see what asset class
each unit.”
can perform well during times of uncertainty. Precious metals have historically performed
Snowden explained that while research into
well during challenging times, especially gold.”
battery chemistry and energy density pitted lithium, nickel and other metals against
However, Morin noted that investors need to
each other in terms of importance, copper
look beyond metals and asset classes and
remains in extensive use for both products
categories, and look into the characteristics
and charging infrastructure regardless of
of each project to unlock the potential each
who comes out on top.
asset could have to stabilize their portfolio.
NARROWING THE GENDER GAP IN THE MINING INDUSTRY The mining industry has been considered
communicate assertively, showing women’s
as a men-only sector for many years.
great contribution in companies,” said
Unfor tunately, this realit y has closed
Cynthia Villa, Partner, Founder and General
o p p o r tunities fo r wo m e n wa nting to
Manager, Gruminex and GL Detect.
enter the industry. . While gender gap is still very far from ideal figures, promising
Prior to 2008, there were no women working
sector developments have been made
in the mining industry. Nevertheless, that
in terms of diversity and inclusion, agree
number has increased steadily since 2008.
industry experts.
In 2020, that figure has risen to 16 percent, and this trend is expected to increase in the
“Mining has been stigmatized for years.
coming years, reported MBN.
Women deal with a lot of barriers and challenges that men usually do not face,
“In 2020, 60,000 women participated in the
and this is part of our strengths. We must
Mexican mining industry, this represents 16
p ro m ote wo m e n p a r ticip atio n in th e
percent of the total workforce. Although
mining industry not only within the sector,
this figure is far from being ideal, it is an
but in society, at schools. It is crucial to
important advancement for the sector,” said
17
C onfe r ence H ighlights Fernando Alanís, Member of the Executive
Companies with the highest percentage of
C o m m i t te e , C A M I M E X a n d D i re c to r,
women in management tend to be more
Baluarte Minero.
profitable, said Nancy Morales Arango, Business Development Manager Mexico,
Wom e n’s pa r ticipation in th e mining
Bureau Veritas Minerals and President,
industry is not balanced among various
SME Mexico. “Business competitiveness,
areas of organizations. While administrative
environmental sustainability, corporate
and health departments shave a women
and industry culture is impacted by the
participation of over 20 percent, board,
representation of equalit y. Fostering
director, manager and supervisor roles have
inclusion values helps in increasing women
a representation of under 13 percent, said
participation.”
Alanís. In addition, he said the sector “does not only need to increase the participation
The mining industry has different pressures
of women, but must seek the right balance
a n d i t n e e d s d i v e r s e b a c kg r o u n d s ,
among organizations.”
perspectives and empathy to advance, said Jonathon Bell, Vice President, Dynapro
“In 2020, 60,000 women participated in the Mexican mining industry, this represents 16 percent of the total workforce. Although this figure is far from being ideal, it is an important advancement for the sector ”
Pumps Mexico. “Women inclusion comes down to two aspects. The first one is education. To change the future, we have to start with our education system. For instance, in Canada only 12 percent of engineering students are
Fernando Alanís
women. We do not have enough women
Member of the Executive Committee | CAMIMEX and Director | Baluarte Minero
in those careers. Second, there is a huge gap in how we market and advertise the mining ecosystem. We are not doing enough to promote diversity. The whole mining ecosystem must work in collaboration.”
In 2020, Karen Flores was appointed as Director General of the chamber, becoming
Science, Technology, Engineering and Math
the first woman to hold this position since
(STEM) occupations have grown in by 79
CAMIMEX’s foundation in 1906. “In 2018,
percent in the US, going from 9.7 million to
5,600 mining jobs were created and 3,800
17.3 million, according to the Pew Research
of them were taken over by women. While
Center. In Mexico, the need for STEM skills
CAMIMEX believes in talent more than in
is key among all industries, with nearly 30
gender per se, diversity is a key value that
percent of Mexican employers declaring that
we seek to promote. We expect women’s
they have difficulty finding workers in these
role in the industry to continue to grow in
fields, according to Vision STEM. Mexico
the coming years, not only in operational
has one of the biggest gender gaps, with
roles but also in managerial positions,” said
only 8 percent of women choosing to work
Flores to MBN.
in STEM careers, compared to 27 percent of men, according to OECD. The country’s
Salaries in the metallics mining sector are
percentage of top-performing women in
up to 73 percent higher than the national
mathematics and science is among the
female average, while in the non-metallics is
lowest of all OECD countries.
26 percent higher, reported MBN. The wage gap between men and women is closing in
While there is still a long road ahead
as well. In the labor market, 45 percent of
toward gender equality in the mining
women are unionized within CAMIMEX, a 3
industry, “it is important to acknowledge
percent increase with respect to 2019.
that change is happening,” said Jennifer
18
C onfe r ence H ighlights B u r g e , C EO, Wo r l d W i s e C o a c h i n g &
lasting change for women. Without it,
Training LLC, adding that the sector “must
mining will be left behind in the battle
work together to advance and create
of talent.”
BYLSA DRILLING’S FUTURE EXPLORATIONS Macario Rocha, Geology Manager, Bylsa
various mining projects throughout its
Drilling , during M exico Mining Forum
history since 1930. It is only 150 km North
2022, shared insights over the Sonora
of Hermosillo, Sonora and 140 km South
Gold Project which include epithermal
of Tucson, Arizona. Of the 10 previous
and metasomatic deposits with magmatic
mining operations on sight, four have been
influence of great geological economic
accessed. These include three tunnels:
mining potential.
Sonora Copper, Cascabel and Guadalupe. From a regional point of view, the main part
The project is financed by Benjamin Hill
of the area is covered by a plutonic complex.
Mining located in the Gold Belt of Caborca
There are systems of streaks along the
where millions of oz. of gold have been
eastern and western sides.
extracted. Mine operations in the region include La Herradura, Noche Buena, El
In C aracahui, the plutonic complex is
Chanate, San Francisco (which is currently
deformed but it still has superficies. It has
stopped), Cerro Colorado in the Eastern
a great quantity of dams along the main
sid e a s we ll a s S a nt a G e r tr u dis , L a s
plutonic system. Meaning there are two
Chispas, Mercedes and Santa Elena in the
main events and the last has to be related
western area.
to the epidermal mining type present. The damns are suspected to be connected to a
“ W ith i n th e S o n o r a G o l d a re a th e re
fertile pluton in the area.
are SK ARN outcrops with massive iron enrichment and gold and copper anomalies.
In the structural environment, there are
There is also evidence of hydrothermalism,”
three systems of failures that converge
said Rocha while explaining the findings
the area, which have played an important
of Au and Cu in the area. Findings also
role in the amplification of damns and
included orogenic quartz of irregular bodies
min e ralization . Th e re is also a set of
distributed along the property and a hive of
bimodal damns along the failures and
bimodal damns. There are also stockworks
fractures with a N -S direction . The
of type “D” (Py+Ser+Qtz) streaks. The
mineralized structures stationed are from
morphology of Sierra Caracahui has a
N-S and NE-SW systems, which are forked
longitude of 10 km N-S and a width of 7 km
by a N-S system.
with an unevenness of up to 500 m. T h e r e w a s a g e o -te c to n i c evo l u ti o n The Sonora Gold property includes 6,400
opening which caused a model of relay
hectares where historically gold, silver
ramps that at some point created orogenic
and copper have been extracted through
quartz bodies which through fractures
19
C onfe r ence H ighlights became hydrothermally mineralized in
and a source of magmatic mineralization.
these zones and in the surface, there was
These areas include six anomalies for
a supergene alteration.
Au+Mo+As, four for Au+Cu+Mo+, 2 for Au+Cu+As and one for Au+Mo+As. Seven
A geochemical sediment exercise found
prospective areas have been selected for
new targets for exploration based on five
exploration. These include La Berrenda,
factors of chemical correlation between
Caracahui, El Fierro, La Salada, Sonora
key elements of hydrothermal enrichment
Copper, La Falsa and San Felix.
GR SILVER FINDS OPPORTUNITIES IN SINALOA Mario Fonseca, President and CEO, GR
on a growing Ag-Au resource base with high
Silver, provided company insights during
quality assets.
the Mexico Mining Forum of 2022 regarding project updates over discoveries and plans
The Plomosas Project composed of 432 km2
for future mining projects in Mexico.
of core concessions has a focus on drilling for discoveries and a portfolio of early to
GR Silver is a relatively new Canadian
advanced stage exploration assets. Other
based company that has with actions in
areas’ non-core properties also provide
Sinaloa. The company was created by
optionality.
North American investors aiming to create a silver and gold mining business. GR Silver
The project provides great opportunities
is currently in an exploration phase, Fonesca
because of the areas’ concession, 55-60
explained, nevertheless, the company has
km with many areas where there have
made promising findings along their 700
been previous gold and silver projects.
km2. These discoveries include a new
Nevertheless, GR Silver has done extensive
high-grade of Ag-Au veins near historic
work to unfold new discoveries in areas
mine sites and a 14,000 m drilling program
that before were thought to be only basic
nearing completion. The geological setting
metals. These areas of opportunity include
composed of extensive low to intermediate
San Marcia, where 40 million silver oz. have
sulphidation Ag-Au epithermal veins and the
currently been extracted, and the Plomosas
defining controls of Ag-Au mineralization
Mine, where much infrastructure is left over
make the area an attractive entry point to a
from a 2001-closed project.
district-scale Mexican project where trading at a discount to peers is possible.
“At Plomosas we are still producing inside an antique mine. The mine was said to have
Fonesca believes the company is positioned
lead and zinc. Today we have discovered
for continuous value growth since it has
new silver and gold veins and are in a phase
implemented a strategic asset in a prolific
to increase resources,” explained Fonseca.
mining district with strong geology as well
The Plomosas project in 2022 will target Ag
as the experienced leadership team in place
grade increase, adding new Au-Ag zones
20
C onfe r ence H ighlights into the resource model and increasing
and underground platform provide access to
attractiveness with multiple resource areas.
deeper targets, which have been delineated by the geophysical program.
The San Marcial underground expansion drill program is the first underground drilling
The company also strives to achieve zero
program completed, where the testing down
significant environmental incidents, focuses
dip extensions of 8 holes of 2,436 m has
on community engagement and ensures
been completed, nevertheless, still pends
neighbor benefits. GR Silver provides
results from five final holes. The successful
employment opportunities by hiring local as
drill program found new intersections which
well as encouraging diversity and inclusivity
extend mineralization up to 170 m down dip
in the workplace. GR Silver is currently in a
below the San Marcial Mineral Resource, to
phase of resource exposition which assures
420 m from the surface. The tunnel extension
further findings and developments.
CERRO CALICHE POISED TO CAPITALIZE ON CAREFUL EXPLORATION Sonoro Gold’s Cerro Caliche gold project
success of Sonoro Gold’ flagship project,
has managed to effec tively prove its
the gold-focused Cerro Caliche, with its
potential and is ready to launch its transition
portfolio being rounded out by gold and
from exploration to development thanks
silver project San Marcial.
to its satisfactory drilling results, reports project leader Kenneth Macleod.
MacLeod explained that Cerro Caliche was additionally benefited by its prized
As President, CEO and Director of Sonoro
location. The state of Sonora, where the
Gold, MacLeod is member of a highly
project is located, is defined by MacLeod as
experienced management team that has
a “pro-mining jurisdiction.” The mine also is
a proven track record in the successful
benefited for being a three-hour drive from
financing of projects and the development
both the state capital of Hermosillo and the
of resource deposits. MacLeod has over
US city of Tucson, Arizona, where many
35 years of experience as a financier and
prominent suppliers and service providers
developer in the international resource
can reach the project and address its needs.
s e c t o r. C o l l e c t i v e l y, S o n o r o G o l d ’s
MacLeod referred to the infrastructure that
management and technical teams have
was available to the project as “first-class”.
discovered and developed a total of 12 gold
In addition, the project is located next to
and copper mines. All of these accolades
four neighboring gold mines: Equinox Gold’s
and accomplishments have played a large
Mercedes Gold Mine, Goldgroup’s Cerro
part in what MacLeod describes as the great
Prieto Gold Mine, Agnico Eagle’s Santa
21
C onfe r ence H ighlights Gertrudis Gold Project and Magna Gold
one of Sonora’s most promising mining
Corp’s San Francisco Mine.
projects. While highlighting the potential of Cerro Caliche, which he assures was key
MacLeod explained that Sonoro Gold
when the company decided to acquire it.
could take advantage of these prominent
VP Díaz revealed that they were working
geographic conditions to map out a drilling
hard in transforming the property into
campaign that could be built around the
an “economic resource” by optimizing
sites of nearby historical mines, such as
operating parameters. Sonoro Group has
Cabeza Blanca, Japonesas, El Colorado,
an “aggressive” operational plan for the
La Española, Las Abejas, El Boludito and
property by the end of 2021, on track to
Veta de Oro. The total concession area of
start production in 2022, he added.
Cerro Caliche covers 1,350 hectares, within which a total of 10,760 meters has been
MacLeod remains positive that, based on
drilled in 105 holes. Sonoro Gold ended up
these results, the project will be able to
greatly increasing the scope of this historical
move to its next phase in a short time.
exploration by drilling a total of 47,500
“Based on the success of the last three
meters in 433 holes.
drilling years, we are now heading toward construction in the Cerro Caliche Gold
This activity led the project to reach a
project.” MacLeod admitted that access to
mineral resource estimate that was based
financing has been notoriously difficult for
o n 3 1 . 5 m etric to n s of tot a l m ate ria l
junior resource companies despite brief
processed within the resource pit shells.
windows of enthusiasm for gold projects
The potential mineralization outside of the
that shut down quickly. He concluded
resource pit shells, identified by limited
by mentioning that the project ’s next
exploration drilling, was calculated as
catalyst was to obtain its multilateral
ranging from 19.25 to 34.37 metric tons,
investment agreement and finalizing its
containing 204,000 to 365,000 ounces of
land use agreement with ranch leaders
gold and 1,683,000 to 3,005,000 ounces
w h o c u r re n tl y ow n th e l a n d , a d d i n g
of silver. In an interview with MBN, Jorge
that environmental studies have shown
Díaz, Vice President of Operations at
that the project poses no outstanding
Sonoro Gold, stated that Cerro Caliche is
environmental concerns.
COMMUNICATION, TECHNOLOGY CRUCIAL FOR EXPLORATION DECISION-MAKING Mexico has historically played a major
very high worldwide. It is all about the size
role for the mining industr y, given its
of the price, the cost of the test and the
growing geological potential. Despite
chance to success. Mexico attracts us in all
diverse challenges impacting the sector,
these senses,” said Michael Konnert, CEO &
there are still enormous opportunities of
Founder, Vizsla Silver.
exploration in the country that could be exploited by providing good relationships
Mexico has a long mining tradition and
with communities, assertive communication,
is the largest producer of silver in the
technology and supply chain cooperation,
world, besides being a top global player in
agree industry experts.
gold, copper, zinc, among other minerals. The country has a favorable environment
“Mexico remains our main focus. Although
for the industr y; however, the mining
there have been successful mining stories
ecosystem has faced several challenges
for the past 500 years, there is still a big
during the last few years, including the
chance to explore the country. Mexico offers
lack of concessions for exploration and
a skilled workforce, a developed supply
legal uncertainty. Despite these difficulties,
chain and titles security - the country ranks
there are over 250 private exploration
22
C onfe r ence H ighlights companies in the country, with operations
continued to grow and gain importance
concentrated mainly in Sonora, Zacatecas
without being totally dependent on mining,
and Chihuahua.
wrote for MBN Karina Rodríguez Matus, Partner, Rodríguez, Matus & Feregrino.
“There is a cornucopia of mineral wealth in Mexico. It is not always easy to find the
Worldwide attempts to address global
best locations, but the country has certainly
warming and transition to a net zero
a great geological potential, with major
carbon economy have increased interest in
opportunities for discoveries,” said Ben
renewable infrastructure, which demands
Whiting, President and CEO, Orex Minerals.
the use of various minerals, especially lithium, cobalt, nickel and copper. Besides
Drilling companies play an important role
mining contribution to these attempts,
in the Mexican mining industry as well,
the sector has also been pressured to
said Magda Orozco, Administration, Maza
utilize greener sources of energy during its
Drilling. “One of the most relevant factors
processes, and technology has often been
is the level of knowledge that drilling
an important asset to address these.
companies have, in addition to high quality services for customers to feel comfortable.
“We are focusing on decarbonization of
Also, giving a comprehensive service,
our processes, with electric and hybrid
focusing on sustainability is important.”
e q uip m e nt . Also, wate r re circulatio n processes are crucial in our efforts toward
“We are focusing on decarbonization of our processes, with electric and hybrid equipment. Also, water recirculation processes are crucial in our efforts toward sustainability”
sustainability,” said Lagarda. While technology is crucial among mining field operations, it “goes beyond physical equipment and also impacts the way i n d u s tr y p l aye r s co m m u n i c ate , b oth
Viridiana Lagarda
internally and externally,” said Lauren
Geology Director | Bylsa Drilling
Megaw, Investor Relationships, Reyna Silver. T h e C OV I D -1 9 p a n d e m i c p r e s e n t e d challenges and modified the way people
E xploration decision-making requires
work across the world. In Mexico,
prior investigation. “It is very important
videoconference usage rate grew 25 times
to see metal prizes and market value and
during 2020, and although the mining
then locate the ideal places to explore.
sec tor may not seem to be the ideal
We must work with a sustainable mindset
industry for tele-working, technology has
and developing technology to constantly
improved internal communication within
improve our practices. Involvement with
companies as well as communication
communities also plays a key role,” said
between different supply chain players.
Viridiana L agarda , G eology Direc tor,
“We developed applications to maintain
Bylsa Drilling.
good internal communication between head office, geologists and management.
The importance of mining in Mexico´s
Communication is the foundation of trust
history is considerable. The economic
with investors and the supply chain ,”
geography of the country´s various regions
said Konnert.
was influenced by the development of this sector. Cities like Durango, San Luis Potosi, G ua dalaja ra , Chih ua h ua , G ua najuato,
Building Relationships with the Community
Pachuca, Zacatecas, Parral and Fresnillo were founded precisely by the flourishing
Besides legal aspects and concessions,
of the mining industry. Since then, they have
mining companies must involve communities
23
C onfe r ence H ighlights where they are working and keep an ESG
student earning a sense of belonging to
approach, agreed industry experts.
his schoolyard,” said Whiting.
“ Underground mining equipment is
While ESG has become an important trend
shifting toward electrification. Mexico is
in most industries, including the mining
not there yet, but we will see this happen
sector, in reality this mindset regarding
in the near future. Community involvement
communities has always been there in the
is crucial in mining. We have reforestation
mining industry, said Konnert. “Mining has
projects tighten to schools, where we
been doing ESG from forever.”
plant trees at schoolyards together with the kids that gain that sense of belonging.
S u p p ly c h a i n co o p e r ati o n , a s s e r tive
Mining companies can have an impact
communication, technology and
on something as big as climate change
sustainability will play a key role for the
and something as small as a first-year
Mexican mining industry to have success.
INSIGHT INTO MEXICO’S LEADING MINES Mexico’s top mining companies must take
community context and environmental
into consideration multiple strategies,
requirements,” explained Jaime Gutiérrez
challenges and innovations to adhere to
Núñez, President, CAMIMEX.
competitiveness and overcome obstacles brought on by the pandemic. Experts are
Nuñez considered experience, adaptability
confident investments will increase this
and the ability to change and be ready
year as new projects start commercial
to solve external and internal market and
production. Despite this optimistic scenario,
government issues is key to succeed in this
most challenges will remain.
industry. He exemplified this process by mentioning a company called Bacis, which
Leading mines in Mexico count on pivotal
has had a consistent evolution for more
elements making their companies stand
than 100 years, starting from a small family
out from the rest in regards to operations,
business to a leading production mining
revenue and stability. “Long-term project
company. “Companies must remember that
mines need to tackle exploration and
the main competitors are themselves and
production, along with various internal and
their costs, since this is the true key to be
external processes such as regulations,
competitive.”
24
C onfe r ence H ighlights Rafael Rebollar, CEO, Industrias Peñoles
protocols for efficiency and productivity has
said that a second strategy implemented
been the top strategy for Torex Gold. “That
to obtain success is by counting on an
coupled with a strong environmental, social
experienced team and having the right
and corporate commitment.”
equipment. These two are the basis to performing better, regardless of external
Despite these strategies, each company
scenarios. Additionally, Rebollar commented
will have to tackle their ver y own
that the ability to relate to key actors is
challenges related to the region they
essential, whether it is with the government,
work in. “Guerrero, for instance, is one of
union or community, “companies must be
the poorest states in the country, with a
able to prove their value.”
social complexity that does not resemble. For us the strategies need to go beyond
Having an excellent execution and focus on
corporate responsibility and really connect
risk management employing an operating
with the community to understand its
system that is constantly improving is
social structure and not be disruptive,”
regarded to be another essential step that
said Rodriguez.
leading mining companies must apply, according to Peter Hughes-Hallet, Country
Every region has a different political, social,
Manager, Newmont Mexico.
economic and legal risk. Rebollar considered that in order to solve these issues companies
“Overall, companies need to prove they
need to do a risk identification exercise to
care about the well-being of workers and
identify their current challenges.“At Peñoles,
the community and this is mostly achieved
just when we started two new projects, we
through genuine leadership and a holistic
had to establish technological ways to carry
wellness view from the company,” said
out remote operations because, due to the
Hughes-Hallet.
COVID-19 restrictions, not everyone could be in the field,” said Rebollar. Moreover,
“Long-term project mines need to tackle exploration and production, along with various internal and external processes such as regulations, community context and environmental requirements”
Jaime Gutiérrez Núñez President | CAMIMEX
companies also need to deal with daily political circumstances, whether local or national, as well as the financial side of the business. According to Rebollar, “metal prices are key and do not depend on us, however, keeping costs low to be competitive is a fundamental factor despite those shifts.” I n a d d iti o n , o n e m u s t co n s i d e r th a t p e r m a n e n t c h a l l e n g e s w i t h s p e c i fi c
From H ughes- H allet perspec tive, the
aspects to focus arise on a daily basis,
latter will increase the company’s margins
said Gutierrez. “The key is to know how
and they will spur a culture of continuous
to manage the progress of the operation
improvement to develop competitive
and its environment. However, Mexico has
advantages through human talent.
a problem of inequity in the distribution of
“Responsible mining operations through
its wealth. This is why our companies want
and through will goatee profitability.”
to help distribute this wealth through the wealth we produce.”
In addition, other companies consider the implementation of various strategies
Technology is another fundamental element
a winning recipe. For instance, Faysal
needed to lead a successful world-class
Rodriguez, VP, Torex Gold, Resources
mining operation, said Karen Flores, General
Mexico considered that enacting operational
Director, CAMIMEX.
25
C onfe r ence H ighlights “ Tech helps with ever y thing. It spurs
ability of companies to generate value for
e ffi c i e n c y, h e l p s with e nv i ro n m e nt a l
their stakeholders. “Investment plus ESG
compliance and reduces risk exposure for
commitment must converge, as a result,
operators,” explained Hughes-Hallet. Its
companies and societies win.” Peñoles
effectiveness for the industry has been
has three high-impact goals for their ESG
such that Newmont Mexico announced
commitments. The first one is to be a
an alliance with C aterpillar, a leading
benchmark in governance, the second deals
producer of mining technology, to develop
with having a positive socio-environmental
an automated and zero-emission system,
performance and lastly, to be recognized as
which aims to support the goal of reducing
ESG leaders.
greenhouse gas emissions. In regards to overall challenges for mining Additionally, Newmont Mexico wants to
co m p a n i e s , G uti e r rez s a i d th e re a re
transform mining with automation. “We
communication barriers with authorities.
are investing US$100 million on 26 first-of-
“The future of mining is in mining
its-kind autonomous and electric mining
concessions, if we do not have mines, there
equipment for underground and open pit
is no industry, regardless of the equipment
mines,” said Hughes-Hallet. In terms of
and staff we have.”
safety, the company is working with smart watches to measure hours of sleep and the
The passing of the electric reform is another
habits of operators who change shifts.
concern for these mining companies . Gutierrez explained that it threatens to
Te ch n o l o gy a lso m a ke s p os sib l e th e
raise costs and to provide limited supply of
electrical efficiency in underground mine
electrical energy.
and, for companies such as Torex Gold, it has reduced 40 percent of the water waste
In addition, the reform imposes limits
in the underground mine, which has been
for companies to invest in clean energy
recycled and reused in the same process.
efficiency in their projects . “ The vast majority of companies have greenhouse
Top mining companies must also show
gas reduction goals, for us is 30 percent
compliance with ESG policies and practices,
by 2030 and zero emissions by 2050,” said
which according to Rebollar, influence the
Hughes-Hallet.
SINALOA: A MINING INVESTMENT OPPORTUNITY Lo c atio n , h u m a n c a pit a l a n d cu rre nt
important motivating factor for global
investments make the state of Sinaloa the
companies looking for future projects,
ideal place for additional mining industry
explained Retamoza.
transactions, reports Felipe Carlos Ibarra Retamoza, Sinaloa’s Undersecretary of
“We agree with some of the stakeholders
Promotion and Economic Competitiveness
regarding Sinaloa as a state that can be we
during Mexico Mining Forum 2022.
promoted in this industry. The Ministry of Economy has permanent communications
S i n a l o a h a s m o re th a n th re e m i l l i o n
with concession owners and this lets us
residents, representing 2. 5 percent of
know they are open and looking forward
Mexico´s population. Many of them are
to receiving investments from companies
ready to join the working taskforce that
with logistics in place,” said Retamoza.
contributes to the development of mining projects across the state. Sinaloa has a
Already, the state has 13 mining districts
terrestrial sur face of 57, 377 km2, and
with more than 1,400 mining concessions.
more than 30 percent of this surface is
“Today we have 119 projects that have
considered to have mining potential, an
foreign capital. Investments from Canada,
26
C onfe r ence H ighlights China, the US, Australia and Egypt stand
an expansion of the Topolobambo port
out.” In 2021, private investment in Sinaloa
being promoted by the Ministry to support
totaled approximately US$343 million in
imports and exports of minerals without
2021, this reflects a positive environment
a problem.
and investment certainty for international investors. In addition, these investments
The Baluarte Bridge, though which travel
h a d a n ot a b l e i m p a c t o n th e s t ate ’s
from M az tlan to S an Antonio, c an be
economy as employment increased by
completed in 15 hours (1,346 km), is another
20 percent and local communities greatly
logistical asset that benefits the state.
b e n e fi t te d f ro m i nve s t m e n t s m i n i n g
In fact, the state’s transportation assets
companies are continuously making in
enable it to provide logistics solutions for
their project areas, explained Retamoza.
neighboring states for shipping at lower costs. Sinaloa´s infrastructure include
Investments in Sinaloa is expected to
three international airports, 1,195 km of
climb through increased connectivit y
railroad tracks, and 11 dams. In addition,
between Topolobambo and Dallas , as
the state has two maritime ports that
there is currently a project being discussed
greatly benefit the mining community.
between the governments of Sinaloa and Chihuahua for the creation of a commercial
Retamoza explained that mining projects
corridor that will run from Topolobambo
are backed by the state’s government and
through Choix, Ciudad Juarez and Dallas.
the Ministry of Economy. The ministry is
This corridor will greatly increase the
already in talks with many investors and
logistics of shipping materials to and from
is currently reopening America Gold and
Canada, reported Retamoza.
Silver, which opened in December and is in talks with the collective bargaining
“ This connectivity places investors in
agreement.
a ve r y g o o d p ositi o n si n ce th ey s e e transportation potential for their minerals
“There are opportunities and if we combine
trave ling th ro ugh M azatla n , D ura ng o
the investment and the reinvestment that
re a ching E aste rn U S , n ot to m e ntion
existing companies are making in the state
individual ports dedicated to agro and
with new investors, there is a strong mining
minerals,” said Retamoza. There is also
potential in the state,” said Retamoza.
KEEPING TRACK OF DEVELOPING MINING PROJECTS IN MEXICO Despite the challenging years the Mexican
are never too early to become part of the
mining industry has recently faced, mining
community and get involved in discussions
companies plan to continue working on
with local stakeholders. Local jurisdictions
exploration and production projects.
and politicians have a greater impact in how we interact with the community than
This is why industry experts from top mining
federal authorities,” said James Anderson,
companies agree that by establishing
CEO, Guanajuato Silver.
good community relationships, developing strong multinational teams , enforcing
Today, mining projects are developing
correct processes and choosing the best
in states with long mining traditions. For
financing options are keys to overcome
instance, jurisdiction is one of the most
challenges and obtain success.
important aspects to consider for mining projects to succeed, and establishing
“Enlisting priorities for mining projects to
operations in states with long mining
success is a multilayer process. You have to
traditions help companies to have an
work on many aspects from an early stage.
engagement and understanding with
One of the main ingredients is that you
local communities and governments, said
27
C onfe r ence H ighlights
Douglas Cavey, Vice President Corporate
be very positive. We have all the elements to
Development, Defiance Silver Corp.
make a very successful project in Sonora,” said Kenneth MacLeod, President and CEO,
One of the states that has a prominent mining
Sonoro Gold. At Cerro Caliche, “we have
history in Mexico is Sonora, considered the
been drilling for the last three years. We
largest contributor to the country’s mining
are proceeding with the submittal of the EIA
industry with an outstanding share of
and the expectation is to start producing
34.2 percent, according to CAMIMEX. Of
by 1Q2023.”
the 1,190 active projects throughout the country, Sonora is home to 267 projects,
More projects are expected to be developed
representing 22 percent of national total.
in 202 2 . Fo r insta n ce , in C hih ua h ua ,
The main metals the states produces are
Discovery Silver continues development
copper, which represents 81.1 percent of the
on its 100-percent-owned Cordero project.
country’s total production and gold, which
Cordero “is one of the biggest undeveloped
represents 29.8 percent, reported MBN.
silver deposits globally,” said Forbes Gemmell, VP Corporate Development,
In Sonora, Sonoro Gold completed a PEA on
Discovery Silver Corp, and added that the
their Cerro Caliche property in September
results of the PEA showed an NPV of over
2021 with very promising results, reported
US$1 billion and an IRR close to 40 percent.
by MBN. The open-pit heap leach operation
The company anticipates delivering a pre-
at Cerro Caliche is expected to yield an
feasibility study by the end of 2022 and a
average 45,700 gold-equivalent ounces per
feasibility study by the end of 2023.
year over a seven-year period, the current estimated mine-life, corresponding to a
Wh e n it com es to esta blishing goo d
total of 323,500 gold-equivalent ounces.
communic ation prac tices , companies
The assessment further revealed that during
must engage with their communities
the first three years of life, the mine would
and jurisdictions, hire the right people,
produce an annual total of 56,500 gold-
manage risks, and partner with the proper
equivalent ounces. Forecasted cash costs
third parties.
are of US$1,227 per g-e ounce. “It comes down to hiring the right people “Mexico is a fine jurisdiction. Sonora’s
for the job and be sure that everything is
jurisdiction is one of the best in the world
done properly, following processes. Keep
for mining companies. The state has relied
communication open with our partners
on the revenues of mining production. The
is important,” said Mehran Bagherzadeh,
relationship between mining companies and
C o r p o rate V i ce P re si d e nt , R ive r si d e
the state government will surely continue to
Resources.
28
C onfe r ence H ighlights Third-party help is necessary for all mining
Challenges to Comply with ESG Principles
companies in the country, which have to rely on their legal counsels and environmental
ESG has become one of the major trends
groups - which do an important job, said
among many industries, including the
Anderson. In addition, Anderson explained
mining sector. Although ESG has always
that all decision makers in Guanajuato Silver
been inherent to mining, due to its social
are Mexican nationals, making conversations
impact and community relationships, small
with third-party suppliers “very direct” and
companies face big challenges to address
helping the company to succeed.
m a ny of it s p rin cip a ls wh il e ke e pin g p ro d u c tio n at o ptim al leve ls , ag re e d
Multinational teams can also help during
industry experts.
communication between mining companies, third-party suppliers and other important
“ESG is a big question for small companies.
players, for instance.
The international market looks at us and expects us to address all these principles.
“Our technical and field teams are all Mexican.
From our perspective, the relationship
However, when it came time of producing
with the community is crucial. We do not
PEA, we brought an experienced Canadian
have a relationship with communities, we
team that had already worked in some
are the communities,” said Anderson.
projects in northern Mexico. This team had the ability to both effectively communicate with
Sonoro Gold has always practiced ESG in
local third-parties and project information to
its own way, said MacLeod, and pointed
any financial institution in the world. We have
that these frameworks have introduced
been able to combine the best of Mexican
regulatory measures that place mining
talent and the best of international talent,”
companies in danger, given the difficulties
said MacLeod.
they bring to raising capital.
He also emphasized that both international
“ESG regulations could end up affecting
and local talent have been blended together
at local levels. If you are strangled by ESG
and will continue to overlap as the project
regulations you will not build a mine and
goes through EIA. “Once production begins,
no schools are going to be built in the
it will be an all-Mexican team,” said MacLeod.
region,” said MacLeod.
MINING ACTIVITY RESPONSIBLE FOR DEVELOPMENT IN DURANGO The state of Durango is traditionally a
p o s si b ilit y of e s t a b li s h i n g a ny oth e r
mining state, where mining activities first
industry is out of the question, explained
took place in the year 1552, at a time when
Gustavo Kientzle, Secretary of Economic
the iron deposit of Cerro de Mercado was
Development of Durango.
discovered by Spanish C aptain Ginés Vázq u ez d e M e rc a d o . T h i s l a n d m a r k
Durango is a leading national producer
event marked the founding of the city
of metals, such as gold (fifth place), zinc
of Durango, where mining production
(second place), silver and plumb (third
has been relevant for metallic minerals.
place), iron (fourth place) and copper
Today, Durango boasts prominent mineral
(seventh place). In non-metallic minerals,
deposits, which are still in operation today.
Durango is a leading producer of bentonite (first place), perlite (second place), marble
These deposits have primarily contributed
and fluorite (third place). The state also
to m a i nt a i n i n g a p ro m i n e nt p o siti o n
has gypsum deposits, clays, limestone,
in Mexico’s mining produc tion . These
sand and gravel, minerals that, according
represent one of the best alternatives
to Kientzle, contribute to the state’s and
for development in places where the
country’s GDP.
29
C onfe r ence H ighlights
Kientzle said Durango has 23 mines in
Kienztle said that for this reason, the
production in 17 municipalities; five of them
mining industry will continue to support
rank among the Top 10 with the highest
private companies ready to invest in
production of metallic minerals out of a
Durango. Moreover, the state is highly
total of 240 in the country. Durango ranks
committed with Mexico’s mining industry,
fourth place nationwide as having the best
encouraging a rule of law that will
performance in the mining industry.
incentivize and support legal certainty in land occupation.
In addition, Durango has 42 economic projects in different areas and according to
Among the state’s most prominent mineral
IMSS, by the end of 2020, the mining industry
deposits are: Ciénega de Nuestra Señora,
was responsible for the creation of 367,935
Tayoltita, Velardeña, Guanaceví, Avino,
direct jobs and 1,839,675 indirect jobs.
L a Platosa , Topia , Cerro de M ercado,
Moreover, plans for a current investment
L a O j u e l a , B a c í s , M a g i s t r a l d e l O ro ,
for three new mining operations in the state
Indé, Minitas and more recently the San
are underway, representing US$46 million
Sebastián, El Castillo, San Agustín and
expected to begin operations in 1Q22.
Rode mines.
AUTOMATION FOR DECISION MAKING AND SUPPLY CHAIN MANAGEMENT Digitalization for mining processes has
the consumption of resources, control
changed from a manual, paper-based
environmental impac t and improve
o p e r a ti o n to a d i g i t a l p l a t f o r m th a t
transport and storage of tailings - most of
incorporates automation , AI , M L , and
this is possible through automation,” said
DML systems to streamline operations and
Hugo Barrientos, Digital transformation
significantly improve business results.
Manager, Mexico, Emerson.
In the last decade, most mining companies
Fo r B a r ri e ntos it is f u n d a m e nt a l th e
have sought to incorporate this technology
incorporation of wireless networks to
in the majority of their mining operations.
monitor personnel and smart mining to
“ M i n i n g s h o u l d co n s i d e r a u to m ati o n
plan and predict, especially in metallurgic
solutions for their operational challenges.
processes. “AI and algorithms can prepare
Mining is in search of being sustainable,
processing strategies with greater
to have a better use of water, reduce
recovery.”
30
C onfe r ence H ighlights Today, automation systems are playing a
individual assets and AI predicted setting
more decisive role than ever before, having
suggestions.
a greater impact due to COVID-19. “To date, remote operational efficiency is a reality and
This technology, according to Alvaro
advanced data analytics that enables real-
Rendon, Director SuiteMET Metallurgical
time decision making in a supported way is a
Optimization, ECN Automation, is the
need,” said Eder Lugo, Minerals Head Large
new generation of automation and implies
Drive Applications, Siemens.
the development of new mindsets to be adopted and fully exploited by companies
According to Lugo, there ought to be
that want to achieve autonomy.
solutions that analyze data generated by the existing automated process of companies.
Rendon explains that this process aims
“Automation pro d uces data that c a n
to modernize architectures at the level
generate indicators that support decision
of process control first, in addition to
making, but not all companies are taking
“investment with age computing servers, in
advantage of it.”
cloud infrastructure and in the extraction process optimization. Operational Digital
Moving toward autonomous operations
Twin will enable informed decision making.”
by automation with simple platforms that can be integrated and allow remote
According to Barrientos, these processes are
management will positively impact the value
to be accompanied by an interdisciplinary
chain and give visibility to a company’s
transition committee to analyze process
processes, said Erik Flores, Specialist
indicators, security, reliability, visions and
in Business Development mining area,
create automation improvement strategies.
Mitsubishi. “The best automation solutions allow you to control, correct and visualize
“The human factor is going to be essential
different processes in real time.”
and automation also plays a role in reducing risks for collaborators and members of the
N e v e r t h e l e s s , t h e r e a r e s p e c i fi c
committee,” said Barrientos.
technologies, such as the Digital Twin, that c an have a greate r impac t than
Automation has raised concerns over job
others. Digital Twin for Mining is a virtual
losses, as it is clear that some professions
representation of the physical world, stored
suffer more from automation than the
in a representative structure on a cloud data
benefits they would obtain . However,
platform. With the Digital Twin solution,
Monica Samudio, General Director for
companies can visualize their data and asset
M exico, Central Americ a and C aribe,
settings through an intuitive, easy to use
Circutor, explained that there are definite
interface that represents the entire value
o p p o r t u n i ti e s r e s u l ti n g f ro m d i g i t a l
with the ability to drill down all the way to
technologies.
31
C onfe r ence H ighlights
“To date, remote operational efficiency is a reality and advanced data analytics that enables realtime decision making in a supported way is a need”
Eder Lugo Minerals Head Large Drive Applications | Siemens
“Train yourself in the skills of the future and be aware of new trends such as AI, Virtual Reality or ML. But also, develop leadership, creativity and critical thinking,” recommended Flores. In addition, Flores envisions a future where humans and robots work together, while tech provides more job opportunities, but with different approaches. For Lugo, the human factor is a pillar within the automation portfolio developments. He
“ These are new c are e rs that ne e d to
explained that the job transition is normal. “It
adapt intelligent learning, and assistance
is the fourth industrial revolution and it always
systems are great to create career entry
happens, there are job losses, but there is an
opportunities for workers,” said Samudio.
immediate recovery curve.”
SSAB TO INTRODUCE FOSSIL FUEL-FREE STEEL In an effort to launch the first ever fossil
clients with innovative project to find
fuel free steel produced in the market by
something that is not currently available in
2026, SSAB, Swedish Steel AB, a global
the market. One example of innovation is
steel manufacturing company, aims to
the fossil fuel free steel the company will
reinvent the use of steel in mining by
introduce in the coming years.
approaching the future production of steel in a sustainable manner and introduce a
J orge G arduño, Area S ales M anage r,
premium product without CO2 emissions
reported the company’s commitment is to a
in its process. Through this product, SSAB
stronger, lighter and more sustainable world
will be a leader in sustainability and plans to
during Mexico Mining Forum 2022.
be CO2 free by 2045. “Our world is built using steel and with a The product will be developed by HYBRIT
growing need on infrastructure and teams,
steel making technology, bringing about
we need more sustainable solutions,”
a r evo l u t i o n i n s te e l m a k i n g a s t h e
said Garduño.
technology turns iron ore into steel using hydrogen and no coal for ironmaking to
As a steel global company positioned in
then emit only water. HYBRIT is already
leadership fabrication of high resistance
u n d e r w ay a n d s t a r t i n g i n 2 0 2 5 w i l l
steel and related services, the company
convert their blast furnaces into electric
today is well positioned to introduce a
arc furnaces.
new product into the market which could revolutionize sustainability in the industry.
Arturo Rivas, Regional Sales Manager, said, the company looks “…to not only
Manufacturing since 1878, SSAB employs
sell a product, but also offer a service.”
more than 14,000 professionals in over 50
Th ro ug h H A R D OX p ro d u c tio n , th e
countries through its five branches (SAB
company present s the highest usef ul
Specialized steels, SSAB Europe, SSAB
life with relation to steel of the same
Americas, Tibnor and Ruukki Construction)
specification with extreme durability and
and has an annual capacity of 8.8 million
designed for resistance in impact.
tons steel resulting in approximately US$7 billion earnings. Productions accounted for
Tomás Falcón, Technical Development
30 percent of thick steel plate production
Manager, explained how SSAB innovates
in North America and 25 percent of global
support and engineering service to support
specialized steels.
32
C onfe r ence H ighlights SSAB also has a strong global and local
engineering services, recognized brands,
presence in more than 1 5 0 countries
loyalty programs, marketing support as well
hiring locally to boost market employment
as technical support. SSAB provides steel to
opportunities. The company’s brands are
various industries ranging from automotive
recognized worldwide and these include
to construction to mining and energy.
STRENX , HARDOX , DOCOL, TOOLOX , ARMOX and GREENCOAT. These companies
However, Garduño explained that the steel
offer more than steel by providing high
industry is responsible for seven percent
quality products that guarantee resistance
of global CO2 emissions as a result of
and consistency.
emissions produced in the burning of fossil fuels for steel production. Although steel is
Through conventions with certified local
the most recycled material in the world, the
workshops the chain of Hardox Wearparts
product does not lose its quality and can be
include approximately 540 centers in more
recycled multiple times. The percentage of
than 100 countries. The company offers
recycled steel in the production process will
local stocks, processing services, advanced
continue to be 50 percent by 2050.
HARNESSING TECHNOLOGY TO OPTIMIZE SAFETY, PRODUCTION The introduction of new technologies is
The future of mining is promising and will be
changing operations among all industries,
based on decarbonization, digitalization and
including the mining sec tor, which is
automation of operations, which will look
presently shifting toward automation and
different to what they look now, said Alfredo
digitalization.
Bertrand, General Manager, Epiroc Mexico. “Industry 4.0 applied to mining is focused
These new technologies are impacting
on sustainable, safe and highly-productive
the sector at all levels, including suppliers
exploitation.”
and integrators, increasing miners’ safety, while boosting companies’ production,
Although mining technology seems to be
agreed industry experts.
considered a topic of the future, most of these disruptions are already happening,
“Mining operations are often in distant, uncommunicated environments and reliable connectivity is key. Suppliers have made strategic alliances with tech companies to offer integrated solutions to mining companies.”
said Herman Dittmar, Deputy Director General of Technical Services, Baluarte M in e ro. While technology applie d to security is advancing globally, the Mexican industry still has an important path to cover. “We have a big gap to narrow in Mexico.
Alfredo Bertrand
There are cer tain limitations that put
General Manager | Epiroc Mexico
Mexico behind other countries. However, we are in the right path toward technology, automation and data science, which is crucial. Technology must be applied to
“Mining is a global industry and Mexico
increase produc tion while protec ting
is adapting to new technology trends to
employees’ safety,” said Adrián Márquez,
improve safety and productivity. Mining
Director, VMX Mine Pro Mexico.
workers must have the cer taint y that they will return home safely after their
Technology transformation in the Mexican
workdays. Beyond these statistics and
m i n i n g i n d u s tr y wa s a cce l e r a te d by
low or high accident rates, we are talking
the COVID-19 pandemic, which caused
a b o ut p e o p l e ,” s a id Fe lip e M a r tín ez ,
a d e cre a se in th e n u m b e r of p e o ple
Director Mexico, ROBIT PLC.
working on-site and brought teleworking
33
C onfe r ence H ighlights
to administrative areas, said Jorge Luis
creating links with people, governments,
Cristerna, Operations Director, Multiled
academia and other supply chain players.
Mexico. Some of the main opportunities
The mining industry of the future will require
that technology has opened to the sector
tailor-made technological solutions for
are Mining 4.0, IoT, digital twin, teleworking
every site, due to the specific characteristics
and safety, he added.
each mine have, “The mining industry has a strengthened, direct link with academia,
“ There are technologies that already
w h i c h p rov i d e s q u a l i fi e d wo r k fo rce .
existed before the pandemic. For instance,
Mexico has specific opportunities in local
there was already satellite review on
development, adapted to each opportunity.
mobile equipment or remote monitoring
Independently from production capacity,
on crushing equipment, but the pandemic
technology must be tailor-made for each
made us improve technologies that already
specific environment, depending on every
existed so that processes run safely,
site’s needs,” said Cristerna.
without affecting neither the operation or personnel,” said Arturo Rivas, Regional
Global interactions and communication
Sales Manager, SSAB. Controlling processes
between mines, producers, consultants,
over long distances and having more
suppliers and manufacturers has improved
predictive forecasts provide companies
with te ch n ology a n d M exico h as th e
greater certainty, allowing them to take
advantage of having the exper tise of
care of their assets, starting with the
local and foreign companies, said Rivas.
most precious, which is the safety of all
This constant interaction enables Mexico
collaborators, he added.
to implement measures that have had success across the world and continue
The Mining Industry of the Future
transforming it into a more technological industry, he added.
The mining industry is an integral part of any foreseeable economy and society. As
Connectivity will play a key role for the
a provider of employment and essential
implementation of new technologies, said
materials, it is connected to almost all
Bertrand. “Mining operations are often in
industry value chains, as described by the
distant, uncommunicated environments and
World Economic Forum.
reliable connectivity is key. Suppliers have made strategic alliances with tech companies
Cristerna explained that mining companies
to offer integrated solutions to mining
are part of the communities they work in,
companies.”
34
C onfe r ence H ighlights Becoming a Sustainable Industry
and we are building the foundations for it. Technology is changing everything.
S u s t a in a bilit y tre n d s h ave t a ke n th e
Suppliers are migrating from providing
spotlight among all industries, including
products to providing services. Mining
the mining sector, which is transitioning
companies are looking for the best service,
toward cleaner operations. In the next
which adds value to them, rather than only
few yea rs , ele c trifi e d e q uipm e nt will
products,” said Rivas.
be massively introduced to the mining industry, said Bertrand.
Although there is a long way to go before reaching carbon neutral operations in the
“Mining is becoming more inclusive and with
mining industry, there are already auto
cleaner processes. Both suppliers and mining
sustainable mining groups operating in
companies are aiming for sustainability
Mexico, concluded Márquez.
MINING PANORAMA AND CLUSTER OF CHIHUAHUA Chihuahua’s great geological potential
mines affiliated to the Chihuahua Mining
has recently attracted more attention
C l u s te r. O ve r a l l , m i n i n g i n th e s t a te
from investors and companies. However,
generates 20,500 direct jobs and 102,000
the state’s mining cluster says there is still
indirect jobs, with 10 percent of these
much to be exploited in mining activities.
belonging to women. Additionally, mining jobs in Chihuahua are paid 36 percent
C h i h u a h u a i s o n e o f M e x i c o ’s m a i n
higher than in other states, according
mining jurisdictions. It is the second most
to Mendez.
im p o r ta nt s tate in silve r p ro d u c tio n , third in terms of gold and zinc, fourth in
Despite its current success, the cluster is
copper and fifth in plaster, according to
seeking to boost the state’s capabilities
Pablo Mendez, President, Mining Cluster
a n d s e ize o p p o r t u n i t i e s f o r g r e a te r
Chihuahua. Around 11. 5 percent of the
development, as only 8 percent of
national mining production comes from
Chihuahua’s territory has been granted
Chihuahua, with this sector representing
in concessions, while only 0.12 percent
4.5 percent of the State’s GDP which in
has been properly explored. “ We have
2020 accounted for US$2.295 billion. “We
important geological opportunities to
work closely with the state government to
boost our exploration efforts.”
promote mining activity, as we have the geological potential to go further,” said
By developing the industry, the cluster
Mendez. “We call ourselves a friendly state
is also trying to promote the economic
because of our closeness to the mining
development of the region. “Together with
community.”
the state government, we want to attract investment and grow local business in the
Around 15 of the 20 most representative
region to foster greater development,” said
mining municipalities in Chihuahua have
Mendez. Among its strategies, the cluster has organized visits to the main mines in
“Together with the state government, we want to attract investment and grow local business in the region to foster greater development”
Pablo Mendez
the state through which companies can understand what these players need in terms of resources and equipment. Their constant efforts have already paid off with a local supplier base of 130 companies and growing.
President | Mining Cluster Chihuahua
The social aspect has also been key to the development of mining in Chihuahua. After
35
C onfe r ence H ighlights the termination of the Mining Fund, the
with the recognition of the rights of ejidal
cluster has organized donations to mining
and indigenous communities, but with the
communities to continue the industry’s
current stigmatization of mining activities
co n tr i b u ti o n s to l o c a l d eve l o p m e n t .
in our country, which, unfortunately, is
“ Last year we donated almost MX$90
generally unfounded,” Mendez told MBN.
million (US$433,2747) in kind to mining comminutes,” said Mendez. Additionally,
The cluster is working with the National
the cluster works with civil associations and
G u a rd , l o c a l co m m u n iti e s a n d , m o s t
organizations that work with communities
re ce ntly, th e fe d e ra l g ove rn m e nt , to
in the Sierra to support their development.
reach remote places in the state and
These collaborations are key to keep
improve the regulator y framework for
promoting mining in the region as bad press
indigenous consultations. “We want to
has been detrimental to the development
reopen projects that have faced social
of new projects. “The greatest challenge
issues. In this process, we must support
that the mining industry faces is not related
both the companies and the community,”
with the permissibility of authorities or
said Mendez.
MINING’S EFFORTS FOR POSITIVE IMPACTS Future challenges for the mining industry
wellbeing in a transition from simple water
in Mexico abound, and topics such as
management to stewardship.
the management of water supplies in the face of scarcity, the implementation of
The consumption of elevated amounts of
greener alternatives on operations, best
energy, said Castillo, represents many of
practices for approaching communities
the highest operational costs for mining
and ways to ensure benefits, as well as
operations. There will also be an increased
self-sufficiency for local communities after
demand for fuel because processes are
mining projects are completed were some
more arduous with lower quality ore which
of the topics discussed during the closing
will require greater processing. Therefore,
panel of Mexico Mining Forum 2022 “ESG:
mining companies need to install green
Creating Positive Impact for Communities
energy sources to minimize operational
and the Environment”, where Independent
costs. Companies also need to engage in an
ESG Senior Consultant Ana Mallen hosted
open dialogue with the local communities
the panel.
and not create false expectations. It is important to communicate risks promptly
Yuren Castillo, Earth and Environment
once they have been identified.
Manager, Golder WSP, believes there are many challenges and uncertainty regarding
Bradford Cooke, Founder and Executive
climate change, especially because many
Chairman, Endeavour Silver, pointed to
local relations are still under development
the importance of not letting external
and much of the industry does not know
fo rce s a n d c h a l l e n g e s d r ive
what could happen next. One challenge
agendas and instead, establish a
is that many mining companies in Mexico
principle of responsibilit y of what he
are close to the end of their mine life. For
calls “corporate social integrit y ”. For
this reason, Castillo recommends viewing
Endeavor Silver, this consists in private-
other frameworks for inspiration and urges
public partnerships in which the company
companies to ensure their projects end in a
financially backs up community projects.
responsible manner. Regarding water supply,
Successful partnerships with local
Castillo recommended water stewardship
communities , Cooke believes , are the
as an effective solution because of the
result of establishing relationships prior
inclusion of stakeholders and environmental
doing business.
mining
36
C onfe r ence H ighlights
Cooke also commented on what he believes
are also decreasing water dependency by
is the industry’s most important water
replacing them with earth friendly bio based
impact - tailings facilities. “Wet” facilities,
chemical agents. Many mines today are
where the ground up rock after minerals
enforcing measures to capture rainwater
have been extracted are stored as clay in
that flow into reservoirs and flow into use,
water behind a dam can be replaced by
Sanderson explained. Through her extensive
dry stack tailing which allows the recycling
work aimed at reaching agreements with
of water. It may come at a greater cost,
local communities, Sanderson advices
nevertheless, it brings a huge benefit where
companies enter negotiations looking for
water can be up to 90 percent recycled, as is
a compromise where both communities
the case of Endeavour Silver. The company
and companies gain. In order to achieve
recognizes the end-dates of mining projects,
this, setting aside cultural prejudices and
which is why they invest in legacy projects
truly understanding the human side of
whose impact can be broad. One such
these communities is required, Sanderson
example is the provision of scholarships for
pointed out.
education well beyond mining interests. Cristina Rodríguez, Deputy Director, Minera Melissa Sanderson, Founder, Mel Sanderson
Cuzcatlán, shared the company’s emphasis
Consulting, highlighted climate change
on climate change through and explained
issues in the industry such as exacerbating
how they are setting short-, medium- and
w a te r i s s u e s a n d d u s t p o l l u ti o n f o r
long-term goals for innovation of technology
communities surrounding the mine sites,
in operations to reduce footprints in
as well as other social aspects. Sanderson
multiple areas such as water, tailings and
emphasized that that the expansion of social
energy. They are working with close cycles
media has empowered all communities
of water management to reduce impact and
so the traditional image of stakeholders
new project with solar panels. By measuring
surrounding communities which have been
the impact of their 72 solar panels, they
directly impacted by projects may not be so
know they have reduced over 100 tons of
fitting anymore. As such, companies need
CO2 in labor.
to step-up their game in order to adapt to a new climate which needs updated
Minera Cuzcatlán has also made sure
sustainable and social impact plans.
to leave a positive impact in the local community. This was done by seeking out
Increasing technologies are reducing water
an understanding of what they needed and
dependency and new mining techniques
as such, they have been able to provide
37
C onfe r ence H ighlights employment opportunities which have
analyze goals in order to prioritize which
represented
activities are possible to develop in future
a reduction of migration
out of the communities to seek financial
stages, Neri said.
opportunities and have greatly impacted the oppor tunities local women are
Neri also encouraged social projects to
presented with.
be thought of not only locally but for the entire state and area, some of which can
Finally, Ulises Neri, Mexican Vice Chair,
be done by highlighting the importance
Expert Group on Resource Management
of mining activities in daily life. As Neri
and United Nations Economic Commission
mentioned, the mining industry is one
for Europe (UNECE), urged companies to
which not only impacts but benefits every
consider how they can achieve a balance
individual through end-products. Neri also
between shareholders and stakeholders with
agreed with missions for the participation of
people and local governments regarding
local communities in creating value chains
mining project compromises. Industry
and local activities so they have a say in
participants in the panel highlighted that
how they are benefitted or funded by the
there are many tools and standards to
mining projects.
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