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Mining’s relevance has increased significantly in recent years, as metals have grown more important and are now seen as the pillars of the global transition toward green technologies. To take advantage of these bullish markets, mining companies around the world have prioritized process enhancements, the implementation of cutting-edge technology and the strengthening of ESG areas. Mining companies in Mexico have faced a less-than-ideal environment, however, facing the approval of government initiatives that seek to reduce new permitting, thus limiting investment opportunities and increasing uncertainty. Fortunately, according to experts, these challenges do not detract from the high mining potential that the country has yet to unlock. At both 2022 editions of Mexico Mining Forum, industry insiders emphasized that in order to find solutions to overcome the industry’s most pressing challenges, to unlock new opportunities and to accelerate the transition to Mining 4.0, mining leaders need to exchange key information, experience, opportunities and collaborate more closely. During its latest edition, Mexico Mining Forum 2022 ECHO brought together industry leaders representing the main companies in the industry, welcoming 49 speakers and generating 246 matchmaking interactions resulting in 58 high-level 1:1 meetings. Next year, Mexico Business will continue to offer unique hybrid conferences for participants, speakers and sponsors to maximize business opportunities. Our conference programs will continue to offer insider perspectives on key topics designed to support better decision-making and to improve results. We look forward to welcoming the leaders of the mining industry from Mexico on Jan. 25-27, 2023 at Mexico Mining Forum 2023!
4
C onfe r ence I mpact
103
companies
conference participants
30% 17% 19% 09% 15%
Manager Director CEO/DG Associate/Executive Geologist/Engineer/ Analyst/Consultant 10% VP/President/Board Member/Partner
8
101
6,733
sponsors
speakers
334
Breakdown by job title
49
visitors to the conference website
in-person attendance
Conference social media impact 9,426 direct impressions during MMF
Pre-conference social media impact 71,595 direct pre-conference LinkedIn impressions
1.95% click through rate during MMF
1.96% pre-conference click through rate
3.475% conference engagement rate
3.95% 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.
154
participants
Matchmaking intentions
246
matchmaking communications
58
1:1 meetings conducted
562 Networking Total
1,761
250 Investment 870 Trading 79 Recruitment
5
C ompan y Attendance •
ABB México S.A. de C.V.
•
IPEC Ingeniería SA de CV
•
Akcomunicacion
•
Kiewit
•
Alamos Gold
•
Kootenay Silver
•
Alien Metals Ltd
•
LONGi Solar
•
Altaley Mining Corp.
•
M3 Mexicana
•
Altum Capital
•
MACLEAN ENGINEERING
•
Amtex SA
•
MAG Silver
•
Anmark
•
Metso Outotec
•
Aosenuma
•
Mexico Business
•
Arzate Noticias
•
Minas de Oro Nacional S.A. de C.V.
•
ASORE
•
Minera Frisco
•
Barchip México
•
Minera Gorrión
•
Benchmark Mineral Intelligence
•
Minera MediaLuna
•
BRAVO ENERGY DE MEXICO
•
Minesense technologies
•
Brella Ltd
•
Multiled
•
Bylsa drilling
•
O’Gorman&Hagerman
•
CAID
•
Optecs BV
•
CAMEXA
•
Orla Mining
•
Canadian Chamber of Commerce
•
Osisko Development
•
CEMENTATION MINING MEXICO SA DE CV
•
OutletMinero
•
CITRUS Industrial Decarbonization
•
Peña Colorada
•
Clúster Minero Sinaloa
•
Peñoles
•
CMIC
•
PPG Industries
•
Colegio de Ingenieros de Minas,
•
Proyectos y Construcciones VIRGO
Metalurgistas y Geólogos de México
•
PwC
•
Compañía Minera Cuzcatlán
•
Radar Minero
•
CR Legal Partners
•
RAMA MANTENIMIENTO INDUSTRIAL TOTAL
•
CS SHELL & QUAKER STATE MEXICO
•
Ranchero Gold Corp
•
Dirección de Operación y Apoyo Técnico
•
Rentar Fuel Catalyst, Marreg
•
Draslovka
•
Empresas Matco / Caterpillar
•
RER ENERGY GROUP
•
Endeavour Silver Corp
•
Resiter México SA de CV
Corp. master distributor
•
ERM
•
Revista Perfil
•
Evonik Industries de Mexico
•
Reyna Silver
•
Fideicomiso de Fomento Minero
•
SANTACRUZ SILVER MINING
•
Gcsc
•
Sapuchi Minera
•
GEOSERVIX
•
Secretaria de Economía
•
Globexplore Drilling
•
SEDECO Michoacán
•
Gobierno de Coahuila
•
SEMARNAT
•
Gobierno de Ontario en Mexico
•
Semperit
•
Gobierno del Estado de Sonora
•
Sempertrans
•
GoldSpot Discoveries
•
SERCOM
•
Gonzalez Calvillo
•
Sika Mexicana SA de CV
•
GR Silver Mining
•
SME
•
Grupo Maya
•
Solum Consulting Group
•
GRUPO MEXICO
•
Southern Pulse
•
GRUPO MULTISISTEMAS DE SEGURIDAD
•
TAKRAF Mexico
•
Grupo Villacero
•
The Silver Institute
•
Hexagon Mining
•
Tocvan Ventures Corp.
•
Iberdrola México
•
TOTALENERGIES
•
ICE SRM
•
Victoria Ecosystems
•
Industrial Minera México, S.A. de C.V.
•
WorldWise Coaching LLC
•
International Business Solutions
6
P r og r am D ay 1
09:00 STATE OF THE MEXICAN MINING INDUSTRY Speaker: Tatiana Clouthier, Ministry of Economy 09:15 OPPORTUNITIES OUTLOOK: THE FUTURE OF MINING Moderator: Doris Vega, Minera Cuzcatlán Panelists: Armando Alatorre, CIMMGM Xavier García de Quevedo, Grupo México Jorge Ramiro Monroy, Reyna Silver 10:15 OPERATING ENVIRONMENT AND RULE OF LAW IN THE MEXICAN MINING INDUSTRY Moderator: Christopher Ávila Mier, CAMIMEX Panelists: Ruben Cano, CR Legal Alfredo Phillips, Almaden Minerals Manuel Sainz de La Hidalga, O’Gorman&Hagerman Rubén Alvidrez, Altaley Mining Corp. 11:00
NETWORKING COFFEE BREAK
12:00
SAN ANTONIO PROJECT: THE TRANSITION FROM AN ENVIRONMENTAL PASSIVE TO A SUSTAINABLE PROJECT Speaker: Alma Luviano, Sapuchi Minera, Part of Osisko Development
12:15 TECH’S POTENTIAL AS A CATALYST FOR EFFECTIVE ESG IMPLEMENTATION Moderator: Joel Carrasco, Solum Consulting Panelists: Diego Torroella, Takraf Kimberly Nery, Sapuchi Minera, Part of Osisko Development Héctor Garcés, ERM Arturo Vaca, Peñoles 13:15
CREATING WIN-WIN SCENARIOS FOR INDIGENOUS COMMUNITIES AND MINING COMPANIES Moderator: Miguel Romero, Cgc Tax Panelists: Alfonso Caso, Aosenuma
Faysal Rodríguez, Torex Gold Resources Lourdes McPherson, Minera Adularia Margarita Bejarano, Argonaut Gold 14:00
NETWORKING LUNCH
15:00 SONORA: BENCHMARKING COMPETITIVENESS AND INVESTMENT ATTRACTIVENESS Moderator: Jeroen Posma, Mexico Business Panelists: Jorge Aguirre , CMIC Sonora Fernando Estrada, Sonora Mining Cluster Leonardo Taylor, Sonora Government 15:40 CHIHUAHUA: BENCHMARKING COMPETITIVENESS AND INVESTMENT ATTRACTIVENESS Speaker: Gerardo Duran, Chihuahua Mining Cluster 16:00 MEXICO’S ATTRACTIVENESS OUTLOOK AS A MINING INVESTMENT DESTINATION Speaker: José Jabalera, Ministry of Economy 16:30 MINING AND UN 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT Speaker: Ulises Neri, United Nations 17:00
NETWORKING SESSION - AI-POWERED 1:1 MEETINGS
7
P R O G R A M D AY 2
09:00
CLIMATE CHANGE, RENEWABLE ENERGY, GEOPOLITICS AND THE FUTURE OF MINING
Speaker: Henry Sanderson, Benchmark Mineral Intelligence 09:30
TOCVAN: EXPLORATION UPDATE & DEVELOPMENT OUTLOOK
Speaker: Brodie Sutherland, Tocvan 10:00
RANCHERO GOLD & GOLDSPOT DISCOVERIES: LEVERAGING MACHINE LEARNING IN THE MINERAL DISCOVERY PROCESS
Speaker: William Pincus, Ranchero Gold Corp Speaker: Britt Bluemel, Goldspot Discoveries Corp. 10:30
ALIGNING EXPLORATION RESULTS, SAFETY AND SOCIAL RESPONSIBILITY
Speaker: Cesar Virto, Bylsa Drilling Speaker: Sergio Trelles, Benjamin Hill Mining Corp. 11:00
NETWORKING SESSION - AI-POWERED 1:1 MEETINGS
12:00
ADVANCE LITHIUM: INSIDE THE LITHIUM MINING BOOM
Speaker: Allan Barry, Advance Lithium 12:20
SONORO GOLD: DEVELOPMENT & PRODUCTION OUTLOOK
Speaker: Kenneth MacLeod, Sonoro Gold 12:40
KOOTENAY SILVER: EXPLOTION RESULTS & 2022 DRILL PROGRAM HIGHLIGHTS
Speaker: James McDonald, Kootenay Silver 13:00
INNOVATION, OPTIMIZING MINE OPERATIONS AND MINIMIZING CARBON FOOTPRINTS
Moderator: Chafika Eddine, Orla Mining Panelists: Fernando Gómez, Minesense René Valle, MacLean Engineering Ricardo Gentzsch, Rentar Fuel Catalyst 14:00
NETWORKING SESSION - AI-POWERED 1:1 MEETINGS
15:00
MEXICO MINING SECURITY UPDATE
Moderator: James Sinclair, Control Risks Panelists: Mario Salomón, Multisistemas de Seguridad Industrial Leonardo Taylor, Sonora Government Diana Centeno, WIM Grupo Maya 16:00
PRIVATE SECTOR PERSPECTIVES ON MEXICO’S MINING INVESTMENT ATTRACTIVENESS
Moderator: Matthew Gordon, Crux Investors Panelists: Bill Brodie, Alien Metals Michael Wood, Reyna Gold Corp. Christine West, Endeavour Silver Corp. 17:00
NETWORKING SESSION - AI-POWERED 1:1 MEETINGS
8
C onfe r ence H ighlights CLOUTHIER EMPHASIZES MINING INDUSTRY’S IMPORTANCE AT MMF2022 ECHO Mexico’s Minister of Economy, Tatiana
In addition, Clouthier mentioned that
Clo uthie r, pa r ticipate d in th e M exico
the Mexican Geological Survey (SGM)
Mining Forum 2022 ECHO, which takes
continues to generate geological information
place from July 6 to July 8. Clouthier said
infrastructure, carrying out exploration works
she is pleased to greet all the public and
to the benefit of the sector. According to the
private leaders of the mining industry
minister, Mexico is an attractive country for
to discuss the state of the industry and
private, national and foreign investment, this
network during the event.
is reflected in Mexico’s positioning as the fifth country in the world with the highest
The mining sector is a fundamental pillar
investment in exploration and the preferred
of the Mexican economy, contributing
destination in Latin America.
2.3 percent of the national GDP and 8.1 percent of the industrial GDP. Moreover,
Nevertheless, amid political and legal
Clouthier has highlighted the international
uncertainty and higher metal prices, the
impor tance of Mexico as a mining
Ministry of Economy (SE) reported that
jurisdiction and a leading producer of
Foreign Direct Investment (FDI) in the mining
silver, as well as an important producer of
sector plummeted year-over-year during
other precious and industrial metals.
1Q22. The sector received over US$610 million during 1Q22, which is 59 percent
Recently, the Silver Institute released its
lower than the amount registered in 1Q221,
Silver Survey 2022, where Mexico ranked
which stood at US$1.49 billion. The drop
as the largest silver producer in the world
in investment is partly caused by the high
for 2021. In addition, 2022’s global silver
performance of the sector in 2021.
production is expected to grow steadily and reach pre-pandemic levels thanks to
During this year, mining companies restarted
newly developing projects.
the investments that were paused due to the COVID-19 pandemic in 2020, when the total
“Foreign Direct Investment (FDI) in the mining sector plummeted year-over-year during 1Q22. The sector received over US$610 million during 1Q22, which is 59 percent lower than the amount registered in 1Q221, which stood at US$1.49 billion.”
FDI reached only US$294 million in total. In 2021, the sector received $2.8 billion in FDI, an increase of 861 percent when compared to 2020. Furthermore, Clouthier pointed out that mining is one of the most regulated economic sectors, as the government protects the
Tatiana Clouthier
nation’s ownership of resources via the
Minister of Economy | Mexican Federal Government
constant supervision of concessions carried out by the General Directorate of Mines of SE. Similarly, the Minister of Economy is working to ensure adequate regulation
Mexico produces nearly 25 percent of
facilitates mining companies’ operations,
the global silver supply and is expected
fostering sustainable mining and prioritizing
to produce over 212Moz in 2022. In 2021,
the rights of workers.
production totaled 196.7Moz. “The biggest increase is expected to come in Mexico,
SE has been working with the UN to create
driven by the ramp-up of new and recently
a pilot plan which promotes sustainable
commissioned projects, alongside rising
actions in the extractive industries, said
p ro d u c ti o n f ro m s eve ra l e s t a b li s h e d
Clouthier. Collaboration with the Pacific
mines,” the report stated.
Alliance would be equally essential for
9
C onfe r ence H ighlights Mexico. The Minister of Economy finished her
by hand with all sectors, clear objectives can
message by expressing that by working hand
be set and achieved.
CHALLENGES HERALD A TRANSFORMATIONAL PERIOD IN MINING In the context of a global energy transition, the
compared to 2019, according to the Ministry
world’s industries continue to depend on the
of Economy. Sonora, Chihuahua, Zacatecas,
mining sector to get the necessary minerals
Durango and Guerrero are the country’s
and raw materials. While new business
main mining states, with a contribution
opportunities have appeared in the mining
of 82 percent to the total national mining
environment with the introduction of new
production.
technologies, the challenges Mexico’s mining sector faces remain the same as those of the
While analysts point out that Mexico does
past years, agreed experts. By focusing on
not offer a largely favorable operational
communication, the country can support the
environment for the industry at the moment,
industry in emphasizing its global importance,
it is still a very competitive country due to
transforming its position in the economy.
its “slightly better” public policies when compared with other countries in Latin
“Mexico has a great future in mining. We
America, said Jorge Ramiro Monroy, CEO,
must change the perception and help the
Reyna Silver.
government by fostering dialogue. Mining companies must take care that the places
As most industries, the mining sector suffered
where they work have access to basic services.
in 2020 because of the pandemic, said García
The country has been little explored and there
de Quevedo: “However, it recovered in 2021.
remains much room for new opportunities,”
In 2022, the bad news is that during the first
said Xavier García de Quevedo, Vice President,
five months, FDI has collapsed 60 percent
Grupo México.
compared to 2021. This happened due to the absence of viable projects.” Mexico is
Mexico’s mining history has a history of
nevertheless a country where a lot of money
almost 500 years. Today, the country is
is tax collected from mining, he added.
the leading producer of silver. In addition, Mexico is a top global producer of gold,
Despite the decrease in both imports
copper and zinc. Regarding the attraction of
and exports during 2020, the mining-
mining investment, Mexico ranks fourth in the
metallurgical trade balance registered an
world and first in Latin America, according
increase of 34.3 percent, reporting a value of
to Deloitte.
US$9.2 billion. Tax contributions from mining increased by 1.2 percent in 2020, amounting
In 2020, Mexican mining exports amounted to
to MX$30.4 billion (US$1.52 billion), reported
US$18.4 billion, a 1.8 percent decrease when
the ministry.
10
C onfe r ence H ighlights
The Mexican mining industry faces various
and a deep focus on renewable energy
challenges , from restric tions on new
development, said García de Quevedo.
concessions and delays in permitting to
“Consumption of copper, aluminum, silicon,
a financial environment weighed down
rare-earth metals, nickel and lithium has
by legal uncertainty. The sector has been
grown exponentially over the past years,”
“highly demonized, mythologized and barely
he concurred with Ramiro Monroy.
recognized for the contributions [it brings] to daily life,” said Doris Vega, Institutional
Despite the challenging environment, the
Relations Manager, Minera Cuzcatlán. In 2021,
mining sector will continue to advance as
the mining industry attracted US$4.24 billion
the market demands tons of minerals and
in investment, which was higher than in 2020
metals, said Alatorre: “The key to improve
but 15.6 percent below the US$5.03 billion
the industry’s situation is to change the
expected for the year, as reported by MBN.
discourse regarding the sector at a global level. We are not the great environmental
“What is more, it is increasingly difficult
e n e my of th e p l a n et .” P e o p l e with i n
to encounter deposit for precious metals,”
the mining sector must start to change
said Ramiro Monroy, adding that lower
p e r s p e c t i ve s o f t h e i n d u s t r y w i t h i n
commodity prices in recent years had further
their own house, letting their families
decrease the exploration budget.
know the positive impact of mining to society, he added.
Although there are several local challenges to be overcome in Mexico, the global industry
Ad d iti o n a l g l o b a l c h a ll e n g e s fo r th e
faces similar hurdles, said Armando Alatorre,
mining industry include excessive logistics
President, the College of Mining Engineers,
costs and talent shor tages, García de
Metallurgists and Geologists of Mexico
Quevedo pointed out. High logistics costs
(CIMMGM): “There are increasingly more
complicate the refining of metals, most
people on the planet and more mining is
of which takes place in China. As copper
needed to supply everything the world
demand continues to grow, Mexico most
needs. There are ups and downs. In addition,
take advantage of its natural resources
we are living times of inflation, which will lead
and become better communicators for
to slower economic growth.”
the mining industry. “Mexico is a mining country by nature. We have to change our
The global demand for metals has changed
communication strategy and convince the
d u e to a dva n ce m e nt s in te ch n o l o gy
public,” concluded García de Quevedo.
11
C onfe r ence H ighlights
COMMUNITIES REMAIN AT HEART OF MINING INDUSTRY’S RULE OF LAW nvironmental and social best practices have
Among other barriers, there are various
become a priority for mining executives
security concerns, tax payment scrutiny and
around the world. In Mexico, this is no
long analysis processes required to determine
exception. However, the companies looking
whether concessions were granted within the
to meet these high standards must overcome
boundaries of the law.
hurdles like a lack of new mining concessions, higher scrutiny on tax payments and the
Land rights are some of the most significant
industry reforms of President López Obrador,
challenges companies could encounter.
which aim to develop the deficient regulation
Th e refo re , “co m p a nies n e e d to f ully
on social matters in a way that is still unclear
understand the legal, social and geographic
for operating companies. Nevertheless,
challenges of the land and its established
communities will remain key to this shifting
communities,” said Manuel Sainz de La
regulation, providing companies with a
Hidalga, Partner, O’Gorman Hagerman. He
cornerstone for their operations.
furthermore stressed it is essential to identify land owners and distinguish between private,
If mining companies aim to be competitive
social and public property. Each of these
in Mexico, they must be competitive while
schemes features different standards to be
remaining respectful of the rule of law.
complied with if a company is to procure land
“Mexico has a vast legal framework for mining
rights and social licenses. Knowing how to
processes, meaning that permit holders need
move ahead will provide certainty and foster
to work under permits, as well as be respectful
positive relationships with land owners, ejido
of human rights, the environment, Indigenous
communities and the government itself.
communities and Mexican culture in general,” explained Ruben Cano, Founding Partner, CR
In 2021, mining companies encountered
Legal Partners Mexico.
yet another subject of concern for their investments. The first Chamber of the
Prior to their operation and to avoid future
Supreme Court of Justice of the Nation
challenges, every company must first carry
(SC JN) delivered its ruling for amparo
out a detailed project feasibility analysis.
trial 134/2021, put forward by the Nahua
During this research, Rubén Alvidrez, Board
Tecoltemi Indigenous community, located
Member and Independent Director, Altaley
in Ixtacamaxtitlan, Puebla. With the ruling,
Mining, explained that companies will find that
SCJN revoked two mining concession titles
there have been no new concessions granted.
that had been granted in 2003 and 2009 to
12
C onfe r ence H ighlights the company Minera Gorrión, the Mexican
Phillips explained that there are now
subsidiary of Almaden Minerals. According
two crucial moments where Indigenous
to the cour t ’s ministers , the M exic an
communities must be involved, “when the
authorities were obliged to facilitate
concession permit is granted and when you
th e right to prior, f re e a nd inform e d
present the Environmental Impact Assessment
consultation of Indigenous peoples, but
(EIA).” However, he said that these moments
failed to do so. The court furthermore
should be clearly established in the law before
argued the state had violated articles 6 and
any operations occur. “We already carry out
15 of the International Labor Organization
social assessment for our operations, but if
(ILO) ILO Convention 169.
new rules are not clear, we cannot proceed with certainty,” Phillips added.
In the ILO Convention 169, Indigenous consultation is defined as the procedure by
The government’s rule of law and companies’
which initiatives, proposals for plans and
compliance will create the desired level of
programs, models of public policies and
transparency that both parties are working
institutional reforms that directly affect
toward. Cano explained that there are still
Indigenous communities are presented to
misconceptions that permits can only be
them with the purpose of obtaining their
acquired through corrupt practices. “This is
consent or agreement.
completely false. Doing everything the right way, being prepared and organized and consult experts to have complete compliance
“The mining industry in Mexico is the second-safest industry, according to data from the Mexican
during a concession is always the right route for mining companies to follow,” he stated.
Social Security Institute (IMSS). Mining is important and part of the solution for safety
“The mining industry in Mexico is the second-
issues, not the problem. By working together
safest industry, according to data from the
with the government, we would be able to
Mexican Social Security Institute (IMSS).
create better projects, solutions and
Mining is important and part of the solution
development for the communities we are in”
for safety issues, not the problem. By working
Christopher Ávila Mier
together with the government, we would be
President of the Government Relations and Legislative Liaison Committee | CAMIMEX
able to create better projects, solutions and development for the communities we are in,” said Christopher Avila Mier, President of the Legislative Liaison, CAMIMEX.
T h e S u p r e m e C o u r t ’s n ew d e c i s i o n , while it is still not binding, established
Through each company’s social compliance,
that mining concessions granted af ter
the authorities can be certain that the
Convention 169 which entered into force
mining industry shares their interests. “Both
in 2014, could be canceled due to the
new entrants and existing companies are
absence of an Indigenous consultation
changing their mindsets to have a socially-
process. “However, there are no guidelines,
centered vision for their operations. While
legal frameworks or clarity on how could
this might take a while to fully establish for
companies in Mexico should comply with
every single mining company, the process is
these obligations,” said Alfredo Phillips,
already happening. We could benefit greatly
Independent Director and Board Member,
by working alongside the government to
Almaden Minerals. As SCJN recognized,
achieve this,” Phillips said.
establishing consultation procedures is the responsibility of the government.
There are a number of government areas
Nevertheless, companies like Almaden
toward which companies should focus their
Minerals could suffer the consequences
compliance. Sainz broke them down to four
of this process is not carried out correctly,
primary entities: the Ministry of Agrarian,
even though no blame falls on them.
Territorial and Urban Development (SEDATU),
13
C onfe r ence H ighlights The National Agrarian Registry, which controls
meet the tax requirements, interact with
ejidal and communal land, The Agrarians
communities, help where the Mining Fund
Attorney’s Office, which protects the rights
would have supported, try to select local
of agrarian workers and Agrarian Courts.
contractors so that the money stays in the
“Through these areas, companies can ensure
community and approach the three levels of
they are approaching the right entities and
government to work together.”
guarantee they set the same goals moving forward,” he said.
Cano emphasizes that communities must be the center of the operation: “mining
Alvidrez shared the primary points to consider
companies must include them in their long-
when developing a strategy to approach the
term visions. Operators have been working
government. “Align the company’s objectives
for centuries and they will continue to do so.
with those of the government, identify the
Government rules change every six years,
economic benefits that help the community
but their focus on these communities remain
and prove how the project spurs job creation,
the same.”
SUSTAINABLY TRANSFORMING SAPUCHI FROM COPPER TO GOLD Canadian company Osisko Development
asset was acquired as a copper mine, but
transformed its San Antonio mining project
gold has been found too, so the company
through its subsidiary Sapuchi Minera
is utilizing previously-used materials for
in Sonora, developing it from passively
these procedures. The mining company is
environmentally friendly to fully sustainable.
conducting major exploration campaigns
Osisko acquired the 11,000-ha project at the
nearby. “The San Antonio project is located in
end of August 2020 and has worked full force
a region with significant geological resources,
to fast-track its operations, shifting the focus
with a great potential to grow and increase its
from copper to gold in the process.
resources,” said Luviano.
Alma Luviano, Environmental Manager, Osisko
What is more, Luviano mentioned that
Development, said the project is located
all exploration and production activities
172km from the capital of Sonora and has
have been carried out through authorized
been successfully turned into a sustainable
Preventive Reports, as the company worked
operation. Owing to the proximity of the
in areas that had been previously affected by
project to Sonora’s capital, Osisko could
mining operations. Therefore, Osisko set out
carry out the transition successfully. The
to minimize its environmental footprint.
14
C onfe r ence H ighlights The biggest challenge Sapuchi Minera
the material kept inside so it would not
overcame was to complete the transition
spread out and cause environmental damage.
from a copper to a gold project while causing
Osisko assured nearby communities of
a minimal social and environmental impact.
periodical maintenance works, emphasizing
This challenge consisted of three main
it would never forget or underestimate its
obstacles. The first issue was to explore
responsibilities to them or the environment.
without causing a significant impact. Sapuchi Minera started two drilling campaigns that
“O ur p roje c t is b eing evaluate d a n d
took five years to complete, doing so with a
enhanced as a differentiator of the company.
minimal footprint on the environment.
We attempt to build better water gathering systems. We are looking at several options
Another challenge was to take advantage of
to do this while minimizing our own water
the acquired equipment and infrastructure,
consumption,” Luviano said.
using it optimally to produce gold instead. Roads, buildings, terrains, a monitoring
The company confirmed that San Antonio’s
net work and fl otation plant s , among
Sapuchi site could yield about 1Moz of gold.
other assets, were adapted to benefit the
Currently, the company is working on the
company’s gold exploitation. Osisko had to
design and construction of Sapuchi Gold to
dismantle and recondition some of these
begin its operation as soon as possible. The
assets to minimize the financial impact of its
site is expected to yield between 50,000
transition.
and 60,000 oz/y of gold. Simultaneously, the company has discovered six promising
Lastly, for the copper leaching plant, the
drill sites covering 15km, which Osisko aims
company constructed water pools to contain
to explore further.
TECHNOLOGY WILL BOOST EFFECTIVE MINING ESG IMPLEMENTATION The mining industry has gone through
addressing environmental, social and
significant changes during its histor y,
governance (ESG) issues as a priority
mainly propelled by new technologies
matter. As these objectives to reduce
that emerged to shift the operations of
carbon emissions and increase workers’
thousands of companies. To respond to
safety are clear, technology will further
pressure from governments, investors and
cement the adoption of ESG factors in the
NGOs alike, the mining sector is increasingly
mining industry, agreed experts.
15
C onfe r ence H ighlights “The environment has changed much in recent
of Energy and Technology, Peñoles. He
years toward an ESG-oriented economy. The
divided the most important criteria into
companies with the best ESG ratings are the
three different categories: social licences,
most favored by investors and public opinion.
safety at work and environmental issues.
Technology leads us to have more efficient
“The social license is the most challenging.
processes. Much progress has been made, but
Society and government have a negative
there is still much more to do to understand
perception of our activity. All human activity
the true impact on the environment and how
has an impact on the planet, but balance
to reduce it,” said Hector Garcés, Partner ESG
must be sought. Although the industry has
Digital, ERM.
improved significantly, problems regarding communication and trust-building persists,”
For the environmental criteria, companies
said Vaca.
must assess their impact on the ecosystem. This covers the company’s measuring and
While companies’ commitment to ESG
management of air quality, water and soil.
criteria remains crucial, the workforce
These criteria extend through the entire
must believe in the same principles for
operation, from exploration to extraction and
the implementation to have success, said
post-production activities, according to
Kimberly N er y, Communit y Relations
insurance broker Marsh.
Manager, Sapuchi Minera, part of Osisko Development. “During the year and a half
“The companies with the best ESG ratings are the most favored by investors and public opinion. Technology leads us to have more efficient processes. Much progress has been made, but there is still much more to do to understand the true impact on the environment and how to reduce it,”
Héctor Garcés Strategy Parner and ESG Digital | ERM
we have been operating in Mexico we have faced a major challenge: culture. The country has a great mining potential, but we must learn from more advanced countries and train our staff to get them really engaged [with ESG criteria],” Nery said. Although most of the industry agrees on the importance of ESG and sustainability, there are several challenges to implement this transition. In a recent survey by Marsh, 90 percent of the global respondents within
Then, the social factors examine how well
the mining industry ranked climate change
mining companies treat and value employees
and ESG as either an important, or the
a n d th e b ro a d e r co m m unities wh e re
most important, issue for their operations.
they operate. Some criteria include labor
However, 44 percent of them said they
management policies, as well as workers’
have an ineffective process, or no process
health, safety and wellbeing. Importantly, it
at all, for identifying, responding to and
includes the impact of the company on the
implementing changes based on climate
local community, where these companies
threats and ESG-related factors. “It is key
usually develop basic services, schools and
to define metrics and standardize processes
contribute to social growth.
here,” said Garcés.
Finally, the governance criteria assess
A r e s p o n s i b l e o p e r a t i o n p e r m e a te s
a c o m p a ny ’s c o r p o r a te g ove r n a n c e
everything at an ESG level, said Diego
practices, from board structure,
Torroella , Direc tor G eneral, Takraf. A
diversity and transparency to the mining
growing number of companies are investing
company’s relationship with regulatory
more in development to reduce carbon
bodies and NGOs.
emissions and increase safety. “It is a matter of conviction. For instance, if we
The mining industry is intrinsically linked
manufacture equipment that helps with
to ESG factors, said Arturo Vaca, Director
water purification and recovery for the
16
C onfe r ence H ighlights operation, it helps the mine reduce costs
Tech implementation requires talented,
and provides benefits to the community.
trained people and time. “[Mexico] needs
Our main focus is safety,” said Torroella.
a certified regulatory body. The entire industry, NGOs, government, shareholders,
ESG and business must go hand in hand,
communities and companies must join to
they cannot work differently, asserted Nery.
create this regulatory body,” she concluded.
STRATEGIES TO EFFECTIVELY APPROACH INDIGENOUS COMMUNITIES The relationship between Indigenous
to courts, as evidenced by the Supreme
co m m u n iti e s a n d m i n i n g co m p a n i e s
Court’s revoking of two mining concession
has proven to be key to maintaining a
titles that had been granted in 2003 and 2009
mining project in Mexico. As the sector’s
to the company Minera Gorrión in Puebla. In
social landscape becomes increasingly
this case, the court determined the Mexican
complex, miners must recognize the voice
authorities were obliged to facilitate the right
of communities and get involved in what
to prior, free and informed consultation of
happens on their land to develop win-win
Indigenous peoples on regarding company
relationships, say industry experts.
initiatives.
Today, more companies are prioritizing
The current goal of many mining companies
environmental, social and governance (ESG)
operating in Mexico is to prevent such issues
issues, which is a reinforcement of the good
by building close relationships with nearby
practices mining companies have been
Indigenous communities from the get-go.
implementing for years, said Miguel Romero, Lawyer, CGC Tax. As part of this development,
“The first factor to consider when we talk
the approach toward Indigenous communities
about Indigenous communities is inclusion,”
has gained more relevance.
said Alfonso Caso, Managing Partner, AOSENUMA. He explains biocultural aspects
For over a century, Mexico has granted
need to be approached with respect, centered
Indigenous peoples legal titles to their
on human rights. “Communicating and
ancestral lands, but many have seen mining
being accepted by these companies is what
firms given rights to this land after the
becomes challenging. We need to learn so
government prioritized mining over other
much to approach them that we might have
land uses in the 1990s, Reuters explained.
to learn new codes and behaviors to create
Nevertheless, communities can still appeal
an effective approach,” Caso said.
17
C onfe r ence H ighlights
I n M exico, 1 1 millio n p e o ple id e ntif y
utility.” Bejarano added that companies
themselves as Indigenous. “Where our
will find a higher purpose where they
projects are located, we live along 224 people
recognize that business is a driver of human
from the Otomi culture. Because of this, we
development. Therefore, companies should
have had to create different strategies to
listen assertively, be understanding and
have a successful approach and project
communicate in a way that those who are not
development,” explained Lourdes McPherson,
industry insiders could understand.
Development and Community Relations Director, Minera Adularia.
“To communicate empathetically, one must listen first to motivations and anxieties.
McPherson explains that to build this
Communication is the missing piece that
strategy, the company created a social,
sometimes hinders the industry. That is why it
health and environmental baseline study to
is so crucial to communicate with communities,
fully understand the community and to be
consulting them on the development of any
able to offer something that would really be
kind of project,” said Bejarano.
responsive to their needs. “It is a challenge for communities to accept us. They have lived
Building solid foundations around credibility
on that land and will continue to do so, which
can also contribute to a better community
is why we have the responsibility to adapt to
approach. Faysal Rodriguez, Senior Vice
them,” she said.
President Mexico, Torex Gold Resources, said that for the company, highlighting that they
To M c P h e r so n , co m m u n iti e s a re n ot
have the will to combat underdevelopment
“different.” They are not isolated, but active.
and poverty in communities has been effective
Companies have to give them a voice,
on their work with these communities.
therefore. However, companies do not have to act by themselves. “Generating alliances
“ We have collaborative development
with academia, government agencies and civil
agreements, where we explain that while no
society would be fundamental to make sure
interest goes above that of our investors, we
we integrate these communities in the base
aim to grant them a similar power in order
of our strategy,” McPherson added.
to create stable conditions for both parties,” said Rodriguez. He shared that academics
Margarita Bejarano, Director of Corporate
have helped Torex Gold in approaching the
Affairs, Argonaut Gold, explained that
communities. The company has also created
conscious businesses go beyond financial
local projects that generated a positive
earnings. “While it is essential for business
economic spillover for the communities
to be profitable, it is possible for businesses
and strengthens the trust they have in
to have a higher purpose that values social
the company.
18
C onfe r ence H ighlights SONORA, MOST IMPORTANT MINING STATE IN MEXICO S o n o ra is th e M exico’s to p p ro d u ce r
“The geological potential of the state is a
of co p p e r a n d g o l d . A lth o u g h oth e r
differentiator and should be promoted and
states are coming closer, Sonora is still
marketed in order to attract investment,”
very much ahead in copper, producing
said Taylor. Furthermore, he mentions that
over 8 0 percent of the total national
attracting investment is one of the challenges
production. Copper is a major factor in
faced by the entity because there is an
Sonora maintaining its leading positioning,
exploration deficit that need to be reactivated.
said Jorge Aguirre, President, Mexican Chamber of the Construction Industry
Taylor explained that the mining concessions
(CMIC) Sonora.
in the state of Sonora encompass 30 percent of Sonora’s land, of which 14 percent have
“Sonora is the mining state par excellence,
been explored and in 0.12 feature established
with 36 percent of Mexico’s total mining
mining projects. In this environment, it is the
p ro d u c tio n . I t h a s H e r m osill o a s th e
responsibility of the state’s government is to
national mining capital in terms of supply,”
communicate this to the federal government
said Aguirre. He predicted that prosperous
in order to rescue and reactivate permits and
times lie ahead for the state’s mining
defend the benefits of mining in Sonora.
sec tor, which be nefit s f rom an ope n , understanding and inclusive government.
Fernando Estrada, Director General, Sonora Mining Cluster, explains that the Cluster
Leonardo Taylor, Director of Mining, The
promotes integration and the strengthening
Government of Sonora, points out that
of managerial capacities for companies.
h i s g ove r n m e n t d e e p l y u n d e r s t a n d s
Integrating environmental and social
the importance, impact and weight that
development issues are further key issues.
the industry has in the state. Therefore,
The Cluster has had a vision of integrating
local authorities are working to maintain
four helixes: investors, academia, the state
investment level and supporting
and society, in order to cover the needs that
companies to reactivate their concessions.
can arise in any mining project. Moreover, it seeks to include the new generations and
More than 100,000 jobs in Sonora’s mining
merge with other industry. “The mining
sector pay over 40 percent of the average
industry today needs capabilities that were
salar y. In total, 22 municipalities have
previously not considered relevant to the
mining activities as their main economic
sector,” said Estrada.
driver. The state boasts 71 active mining units, which ensures Sonora retains the
Sonora has received international attention for
highest amount of ongoing operations in
its recently-uncovered lithium deposits and
the country.
the policy changes of the federal government
19
C onfe r ence H ighlights to the Mining Law regarding the mineral’s
said Taylor. Overall, the experts agree
ownership. “Analyzing and studying lithium
that Sonora has world-class geological
and the viability of projects to exploit the
potential. The state has also cemented
mineral has to be the focus now. We must
itself as a true mining employer, with
work toward that to create a new industry
many of its leaders having been shaped by
so that more jobs arrive to the country,”
the industry.
CHIHUAHUA’S MINING CLUSTER WORKS TO CREATE CLOSER CONNECTIONS Chihuahua is a state with a 450-year mining
nation’s metals production. Durán mentioned
history and is traditionally considered to be a
that 312,000 inhabitants are directly or
true mining entity. Its territory holds important
indirectly benefitted by mining activities, as
reserves of gold, silver, lead, copper and zinc,
the sector has created 20,493 direct jobs.
according to mining chamber CAMIMEX. Chihuahua’s mining industry amounts for
“The Cluster was born in 2013 as the main
12.7 percent of the national metals-focused
association helping and connecting the
mining industry. Mining activity furthermore
companies of the sector and today features
represents 4 percent of the state’s GDP.
130 suppliers,” said Durán. Furthermore, the
Within this environment, the Chihuahua
Cluster is present at 13 mining units and four
Mining Cluster works to spread the benefits
mining projects. It formed alliances with six
of the industry.
educational institutions and two investigation centers, bringing a wealth of technological
Silver is the main mineral produced in
knowledge to the state. The organization
Chihuahua, with 55,371 tons produced in 2019,
furthermore seeks to generate networking
followed by zinc with 7,201 tons, lead with
prospec t s to establish new business
2,332 tons and copper with 690 tons. During
opportunities.
2020, selling these minerals raised US$2.19 billion. Gerardo Durán, Director General,
Just like Sonora, much of Chihuahua’s
Chihuahua Mining Cluster explained that 94
territory remains unexplored. The total
percent of the mining activity is concentrated
surface of the state is 27,745,500ha, of
in the central and southern region of the state,
which 2,053,876ha are concessions for the
concentrated in 20 municipalities. From these
mining sector, or 8.33 percent. Meanwhile,
20 districts, 15 are affiliated with the Cluster,
0.12 percent of this environment has been
and five of them represent 9.45 percent of
used for production.
20
C onfe r ence H ighlights Mining has contributed to the environmental
Development of Chihuahua said that mining
e ff o r t s of th e s t ate , fo r exa m p l e by
companies are considered to be a key ally
reforestation of 543ha and 196,000 trees
of the most marginalized communities in
in 2020. Ninety percent of the companies
the state. Remote, marginalized areas can
working in Chihuahua hold credentials
become nests for illicit economic activity,
for contributing to a cleaner industry.
so these communities risk becoming the
Durán stated mining activities have had “a
focus of criminal activity, mainly from drug
significantly positive impact wherever they
cartels. Because the inhabitants of these
have been carried out.”
communities want nothing more than look after their own well-being, this makes them
Gustavo Ramonet Ontiveros, Director Mining,
vulnerable. The stable nature of mining jobs
the Ministry of Innovation and Economic
can keep such problem at bay.
MEXICO REMAINS AN ATTRACTIVE DESTINATION FOR MINING INVESTMENT The mining industry continues to play a
Jabalera. The production of gold, copper,
vital role in Mexico’s economy, contributing
silver, zinc and iron pellets contribute to
3 percent of the country’s GDP and 9.6 of
85 percent of the country’s total mining-
the industrial GDP. While the sector is facing
metallurgical production value. The total
challenges globally, Mexico remains an
investment in M exico’s mining sec tor
attractive destination for the mining industry,
co m e s fo r 5 9 p e rce nt f ro m M exi c a n
said José Jabalera, Director General of Mining
capital. Twenty-eight percent comes from
Development, Ministry of Economy (SE).
Canada, 4 percent from the US, 2 percent from China , 2 percent from Australia
Currently, Mexico’s mining sector creates over
a n d 5 p e rce nt f ro m oth e r co u ntri e s ,
413,000 direct jobs and 2.3 million indirect
Jabalera added.
jobs. With a preliminary investment of US$4.25 billion in 2021, the total production
Although the issue is pointed out as a
value in 2021 amounted to MX$338.18 billion
challenge by some industry players, talent
(US$16.9 billion), according to SE. Mining
and human capital are actually one of the
activity is present in 24 states across Mexico,
main strengths of Mexico’s mining industry.
as operations intersect with 212 municipalities
“We have a great human capital, recognized
and close to 700 communities. However, 82.5
by companies. There are more than 45
percent of the total mining value is produced
universities, institutes and public research
in five states: Sonora, Zacatecas, Chihuahua,
centers that offer degrees related to earth
Durango and Guerrero..
sciences in the country,” said Jabalera. The average schooling of mining professionals
“The mining industry continues to play a vital role in Mexico’s economy, contributing 3 percent of the country’s GDP and 9.6 of the industrial GDP. While the sector is facing challenges globally, Mexico remains an attractive destination for the mining industry”
is 11.7 years, 2 years more than Mexico’s average. In addition, mining professionals earn 36 percent higher salaries than the national average. “The Mexican Geological Survey (SGM) is a great service for companies,” Jabalera
José Jabalera
emphasized. SGM offers information for the
General Director of Miner Development | Ministry of Economy
exploration, development and exploitation of mines, highlighting mineral deposits, geochronological data, archaeological zones, protected natural areas, vegetation
Mexico’s mining industry is among the top 10
and land use, hydrography and geophysics,
global producers of 17 different minerals, said
among other data.
21
C onfe r ence H ighlights Currently, there are 165 mining projects under
m a c ro e co n o m ic f a c to r s , su c h a s th e
development in Mexico, which are divided into
Mexican peso’s stability over the past 4
four categories: metal projects, non-metal
years and a federal anticorruption policy,
projects, municipal inventories and prospects
said Jabalera. In addition, the government
for further study.
committed not to increase taxes in real terms during the current administration.
Mining clusters play an increasingly important
“Despite the absence of new concessions,
role within the industry, said Jabalera:
the government has respected all existing
“Clusters increase the competitiveness of
contracts,” added Jabalera.
mining regions and foster the development of local suppliers and value chains. These
Mining has a robust institutional framework
organizations promote the link between the
that regulates its actions, he said. “We
productive sector, government and academic
can affirm that mining is one of the most
institutions.”
regulated industries in the country. This provides legal certainty to investors and
The competitiveness of Mexico’s mining
avoids conflicts with the communities that
industr y is underpinned by additional
host this activity,” he added.
MINING LOOKS TOWARD UN’S 2030 SUSTAINABLE DEVELOPMENT AGENDA As Mexican mining companies are
Industries for Sustainable Development,”
heightening their efforts to mitigate carbon
UN Secretary General António Guterres
emissions and join the United Nations (UN)
referenced the 81 countries whose mining
Sustainable Development Goals (SDG),
extraction represents a quarter of global
the UN is also collaborating with these
the GDP and impacts close to half of their
companies to facilitate this transition
population.
and enhance the positive impact mining companies could have.
“Extractive industries have a great potential to drive grow th , suppor t sustainable
In the UN’s document “Remarks to the Global
d eve l o p m e nt a n d re d u ce p ove r t y i n
Roundtable on Transforming Extractive
developing countries . Oil , gas and
22
C onfe r ence H ighlights mining industries are being demonized.
Classification (UNFC) and the UN’s Resource
N eve r th eless , th e world n e e ds th ese
Management Systems (UNRMS).
activities for the energy transition, which requires minerals, and as an activity toward
The UNFC is in charge of devising strategies
development and poverty reduction,” said
to manage budgets and resources to
Ulises Neri, Vice Chair Latin America, Expert
manage industry processes and justify
Group on Resource Management, UN.
capital allocation. The UNRMS is based on 11 principles that provide a holistic vision
Nevertheless, Neri explained that these
toward sustainable development. These
industries are experiencing social, financial
can then be used to develop standardized
and political pressure to make sure that
processes, facilitate resource management,
companies do not see the U N ’s 2030
support decision-making, measure the
Agenda as an optional checklist.
actual progress of a project, consider metrics that contribute to sustainable development
“Ideally, all mining companies with a project
to ensure efficiency in this process.
would have to look for ways in which that plan can respond to the 17 elements that
For mining companies , integrating
the 2030 agenda proposes. The UN wanted
these two programs will facilitate the
to ensure that this is happening by creating
implementation of the 2030 goals into their
the UN Center of Excellence for Mexico and
projects. Neri said that the overall goal of
Latin America,” Neri explained.
this integration is to provide each company with a sustainably-oriented corporate vision,
The Institution of Civil Engineers (ICE) will
which will generate a better reputation
assist the institutions of the extractive and
in society, improve the relationship with
energy industries in Latin America, both
your customers and suppliers, reduce
from the public and the private sector, in
operational risk and increase projec t
meeting their sustainability goals within the
profitability by fostering higher credibility
framework of the SDGs. Its target areas are
with investors and stakeholders. It allows
mining, hydrocarbons, renewable energy,
access to financing with lower rates and to
energy efficiency and efficient resource
sources of private capital that consider ESG
management.
factors to be important. Complying with the SDGs will also strengthen the integration
Neri explained ICE’s efforts are based on a
of resp o nsible inves tm e nt p o r t folios
qualitative and quantitative methodology
with a focus on medium- and long-term
that will integrate the U N ’s Resource
financial returns.
23
C onfe r ence H ighlights ICE is about to start pilot tests in Mexico, a
the goal is to align government policies with
country chosen to lead the project due to
their corporate practices in ESG terms. We
its centuries-long tradition in mining, strong
will begin aligning with their shareholders, do
oil production, leadership in Latin America
a real diagnosis of their situation to create a
and proximity to the north. The three
sustainable transformation plan, which based
selected projects were operated by Almaden
on efficient information management will
Minerals, Starcore International Mines and
generate sustainability-focused corporate
Argonaut Gold. “With these companies,
reports,” Neri shared.
THE WEST COULD COMPETE WITH CHINA’S BATTERY METALS SUPPLY CHAIN Boosted by the global energy transition,
initiatives include an EU-Japan Green alliance,
demand for lithium is pushing the market to
as well as a EU-Canada Partnership regarding
bullish levels. Within this environment, China
raw materials. With these prospects, the
reigns supreme, but other countries such as
global west aims to build a new, competitive
Mexico could look to compete, said Henry
lithium supply chain.
Sanderson, Executive Editor, Benchmark Mineral Intelligence.
On the back of these developments, North America and Europe are beginning to gain
Sanderson explained that the battery supply
ground, albeit slowly. Benchmark Mineral
chain is mainly located in China. He pointed
Intelligence foresees that for 2031, global
out the challenges Western countries face
installed capacity for lithium batteries, a key
to catch up with the economic powerhouse.
proponent of the clean energy transition
Nevertheless, China’s competitors can still
used to store renewable energy, will be at
take steps to close the gap.
6,660.6GWh. Of this figure, China would produce 70 percent of the capacity, North
Sanderson asserts that building this supply
America 12 percent, Europe 15 percent and
chain could be difficult and take time, as China
the remainder of Asia 3 percent. Therefore,
dominates the midstream of the industry.
China does not completely dominate the
Nonetheless, he argues it is possible to
market, as some key battery producers come
build the processing capabilities to compete
from other countries.
with China. Nevertheless, Henderson holds that battery “The key challenge facing lithium is on the
production is the “easy part.” The actual
supply chain, demand is not the constraint,”
challenge is to make waves in other areas of
said Sanderson. Some key challenges the
the supply chain. The extraction, chemical
supply chain faces are access to raw materials,
processing, cathode and anode production,
access to regional refining and rising
cell manufacturing and application of the
operational costs. He states that the more the
mineral will be more difficult to master. This is
prices go up, the cost of electric vehicles also
because of the minimum of five years required
increases. But reshoring is a costly process,
to set up businesses and infrastructure to
so companies must be careful that their
carry out these activities. Increasing natural
expenses do not turn out higher than they
gas and oil prices are making manufacturing
are in China.
much tougher, too. “It is going to be difficult to build new battery material processing
Some of the efforts the Western hemisphere
plants and refineries in Europe against this
is already pushing include a mineral security
backdrop,” added Henderson. However, he
partnership, a US$600billion partnership
sees many industrial processes move to areas
to build a global infrastructure to compete
where clean energy development is strong
with China’s Belt and Road Lithium Mining,
and energy prices are therefore lower, such as
a mammoth in the budding industry. Other
in Quebec. Mining companies themselves are
24
C onfe r ence H ighlights also part of the creation of these sustainable
will not be able to reduce its reliance on
industrial hubs.
the Chinese lithium supply chain. However, it can invest in building mines and focusing
Henderson concluded much investment is
on building processing capabilities. On the
needed to solve the price volatility in lithium
back of this diversification, the global energy
supply chains. In the short term, the west
transition gains a much-needed boost.
TOCVAN VENTURES IDENTIFIES GREAT POTENTIAL IN SONORA Brodie Sutherland, CEO, Tocvan Ventures
of the yellow metal. Sonora is the host to
explained the development and initial
two major mining projects: La Herradura
success of the company ’s projects: El
and San Francisco.
Pilar and El Pic acho, both loc ated in Sonora, Mexico.
In 2019, Tocvan acquired El Pilar and began drilling in 2020. Sutherland noted that at
Tocvan Ventures is an early-stage natural
Pilar, the company’s exploration program
resources company engaged in acquiring,
has been remarkably successful. “Tocvan
exploring , and developing mineral
Ventures has all the elements needed to
properties. In Sonora, the company is
create success. With two quality assets
developing gold and silver projects with the
and a terrific team, we see tremendous
support of local experts and leaders in the
opportunity in Mexico. My goal for this
mining-focused state. Sutherland mentions
year is to entice local developers to see
that the company had been looking all over
the potential I see in our projects and
the world to start a mining project and
m a ke th e m s h a re h o l d e r s of To c va n .
chose Sonora because of its established
Secondly, I aim to advance Pilar toward its
and strong mining culture.
first resource estimate. We are still in an early stage of growth, so there is a lot of
Sutherland points out that Mexico ranks
opportunity ahead,” said Sutherland.
first in L atin America for exploration investment, first in global silver production
Pilar and El Picacho are Tocvan’s two
and stands proudly among the top 10 gold
Mexican exploration projects. Pilar is a
producers. Moreover, Sonora is the top gold
gold-silver project where over 22km of
producer in Mexico, producing 37 percent
drilling has been completed to date. It is
25
C onfe r ence H ighlights located in the Sonora Gold District, the
would like to start drilling by November
country’s most prolific gold production
2022, beginning with some strong targets,”
district. El Picacho is a gold-silver project,
said Sutherland.
located 140km norths of Hermosillo and spanning over 2,400ha. Five primary zones
“ We have over 6km of a prospec tive
of gold-silver mineralization have already
trend that we would like to focus on. El
been identified at the project.
Picacho is a big property, over 24km 2 in size. We see many similarities in terms of
Although El Picacho is an early-stage
host rocks and geology with the highly
p roje c t , th e co m p a ny ’s exp e c t atio n s
prolific San Francisco mine,” Sutherland
are optimistic. Tocvan sees it a strong
added. The company fully expects to
exploration project that has seen very
intersect mineralization. Nevertheless,
little drilling historically. “El Picacho is at a
El Picacho holds a type of deposit that
perfect point for Tocvan to take over and
would require time to define how big its
move toward drilling soon. The company
potential could be.
LEVERAGING MACHINE LEARNING IN THE MINERAL DISCOVERY PROCESS Mineral exploration is not a new business, so
forward,” said William Pincus, Director and
many of the world’s more obvious deposits
CEO, Ranchero Gold.
have been discovered years ago. In the current context with fewer, smaller and more
Previous operators of the Santa Daniela
expensive discoveries, the mining industry
concession had evaluated and initiated drilling
has turned to new technologies like machine
at Maiz Azul, El Rincon and Mesas Coloradas.
learning (ML) to unlock the optimal economic
Maiz Azul’s drilling resulted in the first
potential of projects.
gold discovery at Santa Daniela, explained Pincus. Since taking over the project in 2020,
I n O c to b e r, G old S p ot D iscove rie s , a
Ranchero Gold has conducted extensive
company leveraging ML to transform the
exploration at both Maiz Azul and other
mineral discovery process, announced its
areas of the concession block. This led to the
engagement with Ranchero Gold, the owner
company’s first drill program at Maiz Azul,
of the 22,267-ha Santa Daniela concession
which was completed in January 2022.
in Eastern Sonora. “We are thrilled to be working with GoldSpot. The application
The Maiz Azul area is the most advanced
of ML to diverse exploration data is a new
prospect within the concession area. Recent
tool we can use to best identify new drill
drilling completed by Ranchero encountered
targets, and one of the best ways to move
gold in all 16 drill holes, including intercepts
the exploration of new areas at Santa Daniela
of 4.0g/t gold over 31.5m, 1.2g/t gold over
26
C onfe r ence H ighlights 21.2m, 1.2g/t gold over 15.6m and 1.1g/t gold
Intelligence, remote sensors, cloud computing,
over 21m. The area lies at the northern end
data analytics, back-end processing and
of the Santa Daniela concession block, within
front-end UX. “Our mission is to discover
3.5 kilometers of Alamos Gold’s Mulatos mine.
ore bodies more quickly, efficiently and with
“The best place to find a mine is still next to
lower financial and environmental costs using
another mine,” shared Pincus.
technology,” said Bluemel.
GoldSpot Discoveries’ story began with
ML is simply mathematics that look to provide
six students participating in a challenge in
answers. The real difference is made by
Canada, explained Britt Bluemel, Senior
geologists deciding whether the information
Geochemist, GoldSpot Discoveries. While
provided is valuable or not, explained Bluemel.
the first place went to a group of over 40
It is crucial to have geologists involved in the
professionals, the students won the second
ML algorithm’s creation, curating the data
place and were subsequently approached by
layers to be sure that the outputs are related
impressed investors.
to relevant geological features.
Since that moment in 2015, GoldSpot has
The final objective of this technology’s
grown to “a world-class team of over 80
implementation is to shorten the timeline
people,” said Bluemel. Its team includes 34
between discovery and development, said
geoscientists who specialize in field mapping,
Bluemel: “We want to predict the footprint
drilling, structural geology, geochemistry,
of mineralization, to provide a score or
resource estimation, 3D modeling and
probability to know where there are better
geophysics. The workforce also includes 25
chances to find the mineral and assign
data scientists, specialized in R&D, Artificial
probabilities to certain areas.”
BYLSA DRILLING SETS FORTH PROJECT WITH BENJAMIN HILL IN SONORA Bylsa Drilling, a leading company in the
Benjamin Hill is a junior gold exploration
drilling services environment tackling
company. Originally from Canada, it is
everything typical exploration sites to
exploring the Benjamin Sonora Gold Project
extreme topographic conditions, is working
in northern Mexico, approximately 110 km
alongside Benjamin Hill Mining to further
from Hermosillo, Sonora and 140 km from
some of its large-scale projects in the north
Tucson, Arizona. The area is associated with
of Mexico.
a famous mega fault, where important mines
27
C onfe r ence H ighlights such as Herradura, Sierra Prieto and Santa
hydrothermal brecciation texture with
Gertrudis were developed. Benjamin Hill’s
coincident hydrothermal alteration in the
gold project has 6,400ha with promising
surrounding rock. These first four holes have
mineral occurrences. To date, it features eight
delineated a block of over 450m in length and
exploration targets for mineralized areas.
an up to 103m measured depth of continuous mineralization, with thicknesses up to 40m.
According to César Virto, COO, Bylsa Drilling and Sergio Trelles, Special Geological Advisor,
“The consistent intercepts suggest there is
Benjamin Hill Mining, the project holds values
open potential to track mineralization both
of 31.4g/t gold copper values of up to 12
laterally and vertically. Our interpretation of
percent. “The Sonora Gold Project carried out
the recent induced polarization and resistivity
an extensive sampling campaign in October
geophysical surveys suggests the vein system
2020 to July 2021, which revealed widespread
continues at depth and may widen with depth.
gold occurrences across the western portion
This implies a mineralized body, which could
of the property,” said Virto.
be interpreted as a possible mineralized magmatic source for Sonora Copper,”
Benjamin Hill divided the project in four areas:
Trelles shared.
Sonora Copper, El Fierro, Caracahui and La Salada. From these areas, Sonora Copper
As for the project development, “we must
stands out significantly in terms of its potential
highlight that our quality and success of
value. Nevertheless, recent geochemical
our exploration is because of the highest
surveys indicate gold mineralization may be
quality and safety standards from Bylsa
present in the other areas, too.
Drilling,” he added.
The Sonora Copper Zone’s quartz breccia
Virto explained that the company can solve
vein system consists of two of parallel vein
complex social and legal problems. “We
structures with a mapped surface length
have a total commitment to caring for the
approaching 850m. The veins are composed
environment, ensuring that the impact be
of quartz with barite, sulfides and primary
minimal or zero,” he said.
oxides hosted in granites and volcanosedimentary rock. “The Sonora Copper Zone
“Within the Sonora Gold area there are skarn
hosts impressive historical artisanal adits that
outcrops with massive iron enrichment and
exploited mineralized quartz-rich breccia
gold and copper anomalies. There is also
veins to considerable and yet unknown
evidence of hydrothermalism,” said Macario
depths from the surface,” said Trelles.
Rocha, Geology Manager, Bylsa Drilling to MBN. He had also shared those findings also
Trelles also explained that a total of four
included orogenic quartz of irregular bodies
drill holes tallying 837m were completed
distributed along the property and a hive of
in the Sonora Copper exploration zone.
bimodal damns. There are also stockworks of
All four drill holes intercepted two parallel
type D Py, Ser and Qtz streaks.
mineralized quartz veins that exhibit a
A NEW WAY TO PRODUCE LITHIUM FROM CLAY DEPOSITS Demand for lithium is increasing worldwide,
is marked by a market environment in which
but producing it is proving to be tricky. Allan
demand is strong, but supply is lacking.
Barry, CEO, Advance Lithium explains the
Electric vehicle (EV) manufacturers are
different ways to extract the mineral and the
increasing their production but encounter
agreement with the government his company
problems because they struggle to find the
pursues as it strives to keep its salt lake
raw materials for the batteries they produce,
resources to produce potassium and lithium
lithium being one of the most important
under its possession. The global lithium boom
resources in this environment.
28
C onfe r ence H ighlights “Lithium is often produced from brine
The method Advance Lithium proposes
deposits in South America, via a process that
aims to use electrical separation and water
requires salt evaporation ponds to remove
recycling. Barry explains that the company
water, leaving only the lithium. This procedure
put the clay material and water into an
takes approximately two years,” said Barry,
electrical devise which separates the lithium
adding that it unlikely that new production is
and potassium from the water. Following
going to come from those deposits soon to
that, the company is left with a concentrate,
solve the supply issue.
to which organic compounds are applied to complete the separation of the water from
The silvery-white metal can also be found in
the minerals. This water can be recycled
hard rock deposits, which tend to be high-
numerous times for the same process. In
grade but do not produce as much lithium
addition, the electrical process does not need
as brine deposits. A major hard rock deposit
a lot of power, so solar energy can generate
holder would be Australia. Nonetheless, all
the required electricity.
the country’s production goes to China, which does not really support North American EV
The company has done much sampling and
manufacturers, explained Barry.
drilling and determined that the deposits have minerals at the surface and continue
Another emerging source of lithium is clay
to depth, at times finding higher grades of
deposits, which are found around salt lakes.
lithium and potassium. Advance Lithium
Nevertheless, the known and conventional
began its projects in early 2021, but the
method to extract the white gold from these
government has since nationalized all new
deposits requires a lot of water and chemicals.
lithium production by changing the Mining
Barry presents an advantage Advance Lithium
Law. Although this has been challenging,
has in that regard, based on the work the
the company works to reach an agreement
company has developed with a mineralogist
w i t h t h e g ove r n m e n t a n d d i s c u s s a
working at a major Saltillo-based university,
joint venture.
who invented an environmentally-friendly and more effective method.
Adva nce Lithium could also pro d uce signific ant amounts of potassium , an
“What is really quite impressive about the
increasingly expensive resource essential
method is that it is somewhat similar to the
f o r M ex i c a n f a r m e r s . M o r e ove r, t h e
electrowinning of copper. When that came
company would commit to keep the lithium
along, it revolutionized the production of
in Mexico, so that the country would reap
copper,” said Barry.
the economic benefits.
29
C onfe r ence H ighlights
THE CERRO CALICHE GOLD PROJECT MOVES FORWARD STEADILY The Cerro Caliche Project in Sonora is
(PEA) of the Cerro Caliche Project, which
developing steadily following three years
contemplated an optimized mine plan for
of operations. Its owner, Sonoro Gold Corp,
an open pit, heap leach mining operation
continues its transition from an exploration
with an initial two-year production rate of
player to a full-fledged producing company.
8,000t/d, and an increase to 15,000t/d for
The mining player aims to become a gold
the remaining mine life cycle.
producer by 2023, said Kenneth MacLeod, CEO, Sonoro Gold Corp.
Within the highlights of the updated PEA, Cerro Caliche has a US$53.5 million after-tax
Sonoro G old is a publicly-listed gold
net present value, a 45.6 percent after-tax
exploration and development company
internal rate of return with US$26 million
that has discovered and developed 12 gold
initial capital costs, 2.2 years as payback
and copper mines. Its owns two precious
period and a seven-year life of mine.
metals properties in Sonora: its flagship Cerro Caliche Gold Project and the San
In September 2018 , Sonoro initiated a
Marcial Project. Cerro Caliche is located 3
10km drilling program at Cerro Caliche.
hours north of Hermosillo and 3 hours south
In June 2022, the company reported the
of Tucson, Arizona. The state’s friendly
results from the last seven drill holes of its
jurisdiction first-class infrastructure, in
Phase IV drilling program, confirming the
addition to the neighboring gold mines, add
possible expansion of known mineralized
value to the already alluring project.
zones. During the exploration program, more than 7,3km were drilled through 63
“One of the finest places to find new
holes, which intersected higher-grade gold
gold mines is where the old-time mining
mineralization and confirmed the expansion
operations were scraping around a hundred
of several gold zones, as reported by MBN.
years ago. When we acquired the Cerro Caliche Project in 2018, there were around
Over the past year and a half, several
10 old mining developments and we have
m i l e s to n e s h ave b e e n c o m p l e te d a t
been working successfully on them over the
th e C e rro C a lich e G o l d P roje c t , s a id
past three years of drilling,” said MacLeod.
MacLeod, including the environmental impact studies, a preliminary mine plan,
I n M ay 2 0 2 2 , S o n o ro G o l d fi l e d th e
m a ny kilo m ete r s of d rillin g , th e P E A
updated preliminary economic assessment
and an additional 7.3km of drilling to be
30
C onfe r ence H ighlights added in August 2022. “Sonoro is making
is built by John Darch , Chairman and
a transition f rom an exploration to a
Director, who has 35 years of experience
development company and by next year
as financier, developer and operator in
to a production company. We have had
the international resource sector, a similar
a very successful three-year operational
profile to MacLeod ’s . In addition , the
period at Cerro Caliche.”
technical team features Melvin Herdrick, VP of Exploration, with over 45 years
The company has “about 200 years of
of exp e rie n ce a n d J o rg e D íaz, V P of
experience” within its senior management
Operations, who has almost 50 years of
team alon e , said M acLe o d . Th e tea m
experience as a mining engineer in Mexico.
KOOTENAY SILVER REVEALS COLUMBA EXPLORATION DRILL PROGRAM RESULTS Kootenay Silver is a silver exploration
are reported to extend to depths of up to
company ac tively engaged in the
200 meters and connect to at least six levels
development of major silver projects in
of widespread underground drifts, covering
Mexico, which include Columba and El
lengths of up to 1km. The majority of this
Copalito in Chihuahua. Now that more is
work appears to have been done around
known about Columba’s potential, the
1910, with an estimated 70,000 to 100,000
company set about to highlight its potential.
tons being mined.
“The follow-up phase two drill program comprised of 43 holes, totaling over 9,114 meters. It targeted infill and stepout drilling within the high-grade F vein and the J-Z Vein area .“It is a very strongly mineralized vein”
By 2020, the company had drilled 6,800m with very consistent results. On the original vein, it had wide-spaced holes along 700m, with big gaps in between. The followup phase two drill program comprised of 43 holes, totaling over 9,114 meters. It targeted infill and step-out drilling within
James McDonald
the high-grade F vein and the J-Z Vein
President, CEO and Director | Kootenay Silver
area.“It is a very strongly mineralized vein,” said McDonald. McDonald shared the most relevant highlights
Columba is a project in northern Chihuahua.
from the company’s drilling program in
It is a classical high-grade low sulfidation
2021, which includes Hole CDH-21-110. Here,
epithermal vein system , common for
Kootenay found 650g/t silver over 17m within
Mexican geology. Kootenay’s 2019 drill
a wider interval of 269g/t silver over 29.9m in
campaign was the first to take place in
the D Vein. Hole CDH-21-103 showed 2,035g/t
30 years. Historic data from underground
silver over 6m, within a wider interval of
workings at a depth of 100 meters include
333g/t silver over 44m, also in the D Vein.
nine individual channel samples, taken along
Finally, Hole CDH-21-094 intersected 809g/t
a 25m length of vein, where several high-
silver over 2.63m within a wider interval of
grade intervals were reported to return
354g/t silver over 9m in the F Vein.
silver values from 350g/t over 1.2m to a high of 1,900g/t over 4m.
G eologically, Columba presented few challenges , according to previous
Columba hosts a series of high-grade silver
co m m e nt s f ro m M c D o n a ld . “ Th e re is
veins on the surface as well as extensive
enough exposure to be able to map the
underground workings, explained James
veins and targets fairly easily. However,
McDonald, President, CEO and Director,
the agreement to acquire the rights to the
Kootenay Silver. On the surface, four shafts
concession took a year. Our team in Mexico
31
C onfe r ence H ighlights negotiated the mineral rights and access
and an average daily volume of 763,195
to the surface, advancing the negotiations
shares. “There is an excellent leverage
in a very fast and professional way,” he
to silver and as Columba is a high drill
said. Financially, McDonald explained the
discovery we can guarantee a probability
company has had 359 million shares issued
of investment,” he said.
OPTIMIZE MINE OPERATIONS AND MINIMIZE CARBON FOOTPRINTS The mining industry creates close to 3
this issue. “For decades, this industry has
percent of global CO2 emissions and has
worked without knowing what will happen
a large role to play in the reduction of
along the way. Tech allows to change this
these emissions, according to McKinsey
scenario in every way, from operations to
& Company. To achieve a less than 1.5°C
the very impact that mining activities may
temperature increase climate-change target
have,” said Fernando Gómez, Account
by 2050, the mining industry will need to
M a nage r N or th Am e ric a a nd M exico,
reduce direct CO2 emissions to zero.
Minesense.
Technological advances have amplified the
Gómez explained that Minesense grants
sector’s environmental impact as operations
customers adequate visibility in their real
grow, but they also have the power to
time operations. The company pioneers in
diminish this effect. “First of all, being able
digital mining solutions with data analytics
to measure the environmental impact of
for mines that paint a clear picture for clients
each company is fundamental,” began Matt
looking to optimize operations andcontrol
Gallimore, Senior Manager Sustainability,
pollution. “Our systems also support all
M e t s o O u to te c . T h e c o m p a ny, w h i c h
routing decisions at the point of extraction,
develops tech and other products for mining
minimizing risks integrally,” Gomez said.
and refining companies company, measure CO2 emissions. With these measurements,
For the mining industr y, which of ten
Metso Outotec hopes toreduce its own
operates in remote locations, the utilization
e m is sio n s to o, th ro u g h wh ic h it c a n
of fossil fuels has strongly influenced
becomeexample for its customers.
emissions. Like other sectors, the mining industry also struggles with fluctuating oil
Once companies have an outline of their
prices and evolving climate regulations.
environmental impact, tech can become an
“Realizing the problem, Rentar Fuel Catalyst
ally to work on an effective way to mitigate
developed a unique, patented product with
32
C onfe r ence H ighlights a low carbon output, all while increasing
also considers making the business more
productivity for the mining industry. It allows
efficient whole minimizing operating costs,
to reduce carbon emissions significantly by
according to Gentzsch. For instance, using
increasing the efficiency of fuels,” Ricardo
smart fuel enables operations to reduce
Gentzsch, Business Development, Rentar
costs and accomplish their daily tasks, too.
Fuel Catalyst.
“Rentar Fuel Capacity’s solution uses tech with a complete combustion that burns less
All providers along the mining value chain
fuel while improving operations,” he said.
share the same level of responsibility to reduce the environmental impact of mining.
“With our solution, we measure consumption
For companies working directly with mining
steadily and make it more sustainable. By
operators, costumer feedback helps to
knowing what equipment uses the fuel
create the most comprehensive solutions.
and how to make it as efficient as possible,
“As an equipment manufacturer, we do not
we are reducing the amount of diesel that
have mines of our own to test, so validation
mining operations are using,” Gómez said.
always requires costumer involvement. We are keen to present innovation to costumers
Tech has also evolved other operational
to reduce the water usage and energy
a s p e c t s . G a l l i m o r e s a i d t h e s e we r e
consumption of equipment.The company is
equipment design, operational processes
also encouraging the circularity of products
and interconnection. “Through this, we
while ensuring the highest level of security,”
are able to create simulations to come
shared Gallimore.
up with an optimal offer for green and brownfielddevelopment. Clients can base
As the industry begins to integrate more
their decisions on these simulations.”
tech, digital twins and machine learning are widely requested, Gallimore said.
C o m p a nies a re a lso f a cing lo gistic a l
“Innovation in risk management can help
concerns and supply chain shortages, as
mitigate the negative impact of a volatile
well as pressures from inflation and rising
operational environment and keep our
interest rates, explained Eddine. For these
operations running,” said Chafika Eddine,
reasons, creating innovation to decarbonize
Chief Sustainability Officer, Orla Mining.
the mining industry could play a meaning full role in reducing the supply chain emissions
Yet Innovating mining processes is not only
while solving these financial challenges,
about reducing the ecological footprint, but
explained G entz sch , who added that
33
C onfe r ence H ighlights creating a diversified team ensures fresh
declining, forcing us to extract more water
ideas are brought to the table.
from the ground and filter it. Reducing water consumption is fundamental, so
Water usage is yet another key focus area.
we are already increasing the adoption of
“To continue operating at the same rate,
dry technology whereverpossible,” said
water is fundamental. But its reserves are
Gallimore.
REGULATION, STABILITY CRUCIAL TO ATTRACT INVESTMENT Despite the global supply chain disruptions,
mine. Located in Durango, the mine’s plant
local restrictions on new concessions, delays
capacity was expanded by 100 percent
in permitting and legal uncertainty, Mexico
to 1200t/d. Guanacevi provides steady
remains a very attractive destination for
employment to over 500 people and engages
investment in the exploration, development
around 400 contractors. Endeavour acquired
and production of mining projects, agreed
its second mine, Bolanitos, in 2007. Located
experts in finance and investment.
in Guanajuato, this mine provides steady employment to over 380 people and hired
“Mexico is a very attractive place to mine. The
about 250 contractors.
country has a long history in the industry and we have access to a highly experienced labor
Despite the boom that NAFTA brought to
force, which is crucial. There are tremendously
mining exploration in Mexico in the 90s, “there
attractive projects. Comparatively, the
are still big pieces of land to explore and great
country has a stable economy and currency,
discoveries to be made,” said Michael Wood,
in addition to well-established mining laws.
CEO, Reyna Gold.
There is some uncertainty and that makes it harder for newcomers, but we have been
Reyna Gold, founded in 2017, focuses on
successful in Mexico for a long time,” said
gold exploration in Mexico’s northwest.
Christine West, CFO, Endeavour Silver.
The company has four properties covering 570km2 on the Mojave-Sonora Megashear
Endeavour Silver has several exploration and
and the Sierra Madre Gold and Silver Belt.
development projects in Mexico, in addition
“The properties have been acquired due
to two operational mines. Acquired by the
to their similarities to the gold properties
company in 2004, the Guanacevi mine is
i n N eva d a a n d C a lifo r n i a ,” Wo o d
Endeavour’s first and highest-grade silver
wrote for MBN.
34
C onfe r ence H ighlights Though the opportunities remain attractive
uncertainty as such. However, [regulations
for both local and foreign investors, mining
and conditions] have been steady overall, with
is a capital-intensive activity. Returns on
no new mining taxes.”
investments usually take years to materialize. Therefore, contradictory messages from the
Financing Mining Projects
government have raised concerns among industry leaders. Earlier this year, the
Environmental, social and governance (ESG)
initiative to nationalize lithium “unfortunately
criteria have become progressively crucial
set a precedent,” said Wood. This measure
for mining companies over the past years.
took Mexico off the radar of many investors,
From the impact to the ecosystem, waste
dropping investments during 1H22, he added.
treatment and safety provided to employees and communities involved to companies’
The drop of investment during 2022 also
corporate governance practices, ESG became
has to do with commodity prices amid the
a decisive factor for investors.
accelerated demand for some minerals brought by global sustainability efforts,
“ESG has been practiced for a very long
said Bill Brodie Good, CEO, Alien Metals.
time at many mining companies. Health
“With the long history, the skillset and
and safety have always been crucial for
geology of Mexico, in addition to a degree
us. It has become an essential part of every
of settling down in the global markets,
project. Investors will scrutinize the people
investment will come back soon, stronger
on the board, to check if they follow the
than ever,” he added.
guidelines and see if they genuinely engage to complete the projects,” said Good.
Alien Metals is a UK-based exploration and mining project developer. The company
Regardless, a sound project remains the
has three projects in Mexico: San Celso, Los
key to raise funds, said Wood. “The core
Campos and Donovan 2, all high-grade silver-
project remains crucial. It is not easy to
copper-gold projects in Zacatecas. After the
find good projects in the world and that is
COVID-19 pandemic, which delayed Alien’s
the beauty of Mexico. There are many great
plans during two years, the company has
projects to attract capital,” he added.
resumed exploration at its three properties. Large-size projects have become difficult Despite the spun-out uncertainty, overall
to finance, said West. Companies must be
mining activities have been fairly stable in
able to provide a god IRR and countries
the country, said West: “Investors do not
with clear jurisdictions, stable economies
like a high level of uncertainty. Mining and
and currencies, will favor investments,
exploration already have a high level of
she added.
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