Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Grupo México is planning to invest $3.1bn to expand its metals refining capacity and build energy infrastructure to supply its mines.


Of the total outlay, $2.3bn will be invested to expand its mines’ smelting capacity in Sonora, North Mexico while $815mn is budgeted towards developing new electric infrastructure in its Baja California mines, Xavier García de Quevedo, executive vice president at Grupo Mexico told the media.


The company is also considering investing $9bn from 2021 to 2027, of which $2.8bn will be used to develop energy infrastructure for its copper mine El Arco, Baja California. This mine is expected to produce 190,000mt of red metal per year in 2027. The balance investment will go towards expanding the capacity of its zinc and other mines, García de Quevedo said.


The company’s copper production is expected to fall by 1.5pc this year due to lower production from Peru, he said, but noted that the company’s key mines will start production in the Q2 2023, which will help in increasing the output. The plan includes an additional 36,000mt per year from El Pilar mine in Sonora and 30,000mt per year from Buenavista zinc mine. 


In the first quarter of the year, the company’s copper production fell by 0.5pc to 271,312mt from 272,646mt in Q1 2020. Its zinc production declined by 14.5pc to 16,466mt compared to 19,263mt reached in the same period the prior year. 

Leave a Reply

Your email address will not be published.