The Mining and Exploration News in Mexico: Highlights on the Fourth Week of December 2024
During the 52nd week of the year (December 23rd to December 29th, 2024), companies working in Mexico presented only 5 press releases, a record low in the more than nine years we have been posting news. Not a single company informed on exploration advances at its property, one company presented monthly production. Two companies informed on financing rounds to be applied out from Mexico, a royalties company declared a quarterly dividend. No companies presented news on resources and development. One company is against an unsolicited take over bid. ON MEXICO ISSUES, Mexico is tightening the government’s grip on natural resources, El Salvador is opening to mining. The Mexican government released its Industrialization and Shared Prosperity National Strategy. ?ON EXPLORATION, no relevant news. ON MINING, Dyna Resource released production figures for November 2024. ON FINANCING, Inomin Mines and Quetzal Copper closed financing tranches of C$100 K and C$1.9 M respectively, to be used in projects outside from Mexico. Sandstorm Gold declared a quarterly dividend. ON RESOURCES AND DEVELOPMENT, no relevant news. ON DEALS AND CORPORATE ISSUES, Sierra Metals is not accepting the take-over bid by Alpayana S.A.C. ON SOCIAL RESPONSIBILITY, no relevant news.
On a personal note, this year was a bad year for the Mexican mining industry, and not for lack of potential or bad metal prices, but by government new policies designed to tighten the government’s grip on mineral resources. This event has taken place while one party won a majority that allows them to modify laws without hearing the opposition, and they are proceeding accordingly, not only regarding our industry of interest, but in many others, while at the same time centralizing power and demolishing institutions that can put any restrain on their will. This is not a fatal flaw, in Mexico those that are as old as me lived through a similar environment in the 70’s and 80’s of the last century, and it seems we will have to live trough this other cycle with an all-powerful government and natural resources protectionism. If history is a predictor, these kinds of systems are not efficient and ensure declining growth rates, something democracy can correct if it survives the centralism onslaught.
One sign of encouragement for the mining industry is that a proposal to ban open pit mining was put “on the freezer” (a colloquial term in Mexican politics) and probably is to be modified to allow some open pit mining operations. Afterall, it was just plain nuts not to allow even aggregate and cement plants to operate, not to name the favorite government lithium’s play in Sonora. ?Adding to that positive outlook, in the last page of the recently released Plan México are the actions to be promoted by the government, including a reform to the Mining Law to allow for private enterprises to conduct exploration, to establish a different scheme for open pit mining concessions and to reduce the time for environmental permit processing. Of course, the devil is on the details, and we will have to wait for the reforms to be let known and passed before getting too optimistic. After all, bizarre laws have been produced recently by the same legislators, like the one on the Judicial branch.
We’ll keep our fingers crossed hoping common sense prevails and some burdens are lifted on this beleaguered industry. In the meantime, we in Gambusino Prospector wish you happy holidays and a great new year.
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?ON MEXICO ISSUES
ON EXPLORATION
ON MINING
ON FINANCING
ON RESOURCES AND DEVELOPMENT
ON DEALS AND CORPORATE ISSUES
ON SOCIAL RESPONSIBILITY
On the image below: Copper-stained vein ridge on a project in Sonora. Drone picture by Jorge Cirett.