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WHY MEXICO

Why Mining and Exploring in Mexico

Mexico is a major producer of silver, copper and gold. Base metals such as zinc and lead are also important products. Silver is generally produced as a by-product of base metal and gold mining activities.

There are four major domestic producers, Industrias Peñoles (precious and base metals and world's largest producer of refined silver), Grupo Industrial Minera Mexico (responsible for 90% of Mexico's copper production), Empresas Frisco and Luismin.

The main mining provinces in Mexico are Chihuahua, Sonora, Coahuila, Zacatecas, Baja California Sur, San Luis Potosí, Durango and Guanajuato.

Mexico is the world's primary silver exploration and mining country for several reasons. It is historically and presently the world's number one silver producer with a historic production record of over 10 billion ounces of silver and current annual production closing in on 100 million ounces. Most deposits are high grade and amenable to low-cost underground and surface mining. Mexico has a 500-year mining history and mining is an integral part of the national and local economies.

Politically, Mexico is one of the most stable countries in Latin America, with favorable tax structures and a strong government commitment to natural resource development. Mexico during 1990-1992 radically overhauled a nationalistic mining law for the express purpose of attracting foreign mining investment, which has been very successful. This overhaul was accompanied by privatization of virtually all of the Mexican governmental mining holdings and an active retreat from competition with the private sector in mining exploration and development. Mexico has demonstrated a strong commitment to increasing transparency in all aspects of government, and regulation of the mining industry is arguably the most successful of these. Despite this, Mexico remains under-explored. Major discoveries have been made over the last 20 years by application of modern geological and geophysical concepts and methods, with every expectation that exploration will continue to reveal important new deposits in the near future.

Culturally, Mexicans look favorably on mining at all levels. Explorers and developers can expect fair and equitable treatment when they enter an area. The Mexican mining community is well trained, both at the professional and skilled laborer levels, and very knowledgeable of the latest mining technologies.

Specialized and normal mining equipment is readily available with good technical support. Mexico has strong environmental laws and a commitment to uphold them. Mining operations that follow the Mexican laws and internationally accepted environmental practices can expect to advance their projects without undue delay.

Put all of the above in the context of Mexico's stable political climate, a 500 year mining history, rational environmental policies, excellent infrastructure and a firm government commitment to natural resources development and it is clear that Mexico is a favorable climate in which to invest exploration and development capital. This can be seen by the renaissance the Mexican mining industry is experiencing at present, especially in the Sierra Madre Occidental.