Mexico Mining Forum 2023 - Impact Report

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The Mining sector is one of the biggest industries in Mexico and grows in relevance every day. Mining has gone through significant changes during its history, propelled by new technologies that emerged and altered the operations of thousands of companies.

Many mining companies still lack the communications infrastructure to support the innovation that automated operations demand. However, the need to enhance and implement these technologies is becoming increasingly relevant for mines. At Mexico Mining Forum 2023, industry experts agreed that the potential for digitized improvement is tangible. Technology can help mining operators to engender fully safe mines without accidents or harmful emissions, use recycled water and prevent discharges, as well as foster a great metallurgical recovery rate and fully optimized productivity.

The leading trends that guide new technologies for the mining industry in Latin America are efficiency, to produce more with the same resources, productivity, to retrieve more resources and environmental, social and governance (ESG) benchmark compliance.

Mexico Mining Forum 2023 brought together industry leaders representing the main companies in the industry, welcoming 34 speakers and generating 214 matchmaking interactions resulting in 86 high-level 1:1 meetings.

This 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 once again on July 5 and 6 at Mexico Mining Forum 2023 ECHO!

104 companies 241 conference participants

34 speakers

118 in-person attendance

5 sponsors

3,746 visitors to the conference website

Breakdown by job title

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160 participants

214 matchmaking communications 86 1:1 meetings conducted

Matchmaking intentions

• ABB México S.A. de C.V.

• ADVANTAGE AUSTRIA

• American Metals

• AMTEX CORP

• ANERICAS MINING CORPORATION

• ANZMEX Business Council

• AOSENUMA

• Arzate Noticias

• Ausenco

• Australian Trade & Investment Commission

• Black & Veatch

• Bray Válvulas de México

• Bureau Veritas Mexicana

• CAMEXA

• Canadian Chamber of Commerce

• Clúster Minero de Sonora

• Compañía Minera Cuzcatlán

• CS Shell & Quaker State México

• CyPlus Idesa

• Czech Embassy

• DataInMotion

• Datamine

• Delegación General de Québec en México

• Draslovka

• Dumas Mining Ltd.

• Ecomex (Especialistas en Reducción de Costos)

• Embajada de CanadáGobierno de Ontario

• Embajada de Francia

• Embajada del Perú en México

• Emerson

• Énestas

• Epiroc

• ERM

• First Majestic Silver Corp.

• Gambusino Prospector de Mexico

• GEOSERVIX / AIMMGM

• Gobierno de Sonora

• Gruminex Soluciones para Mineria

• Grupo Calidra

• Grupo Mexico

• Grupo Multisistemas de Seguridad Industrial

• Grupo Villacero

• Hanwa American Corp

• Hubbell Incorporated

• ICEX

• INCIMMET SA

• Independiente

• INMSO

• Innovations

• Insumos Químicos Azteca

• International SOS

• Israel Economic Office

• KAESER Compresores México

• Kepler

• Kiewit

• KPMG

• LLyC

• MacLean Engineering Mexicana

• MAG Silver

• Maquinaria General de Obras y Tecnologia

• Matco / Caterpillar

• Medios Filtrantes Industriales, S.A. de C.V.

• MexicoView

• Minera Rio Dorado S.A. de C.V.

• MineSense technologies

• Mitsui de Mexico

• Monarca Minerals, Inc.

• Muckahi Inc.

• Natural Resources and Renewables (NS)

• New Zeland trade & Enterprise

• NEWMONT

• Nokia

• Orex Minerals Inc.

• OutletMinero

• Paterson & Cooke USA, Ltd

• Peñoles

• Prima

• Proyectos y Construcciones VIRGO

• RAMA Mantenimiento Industrial

• RELyON NUTEC MEXICO

• RER ENERGy GROUP

• Reyna Gold

• Reyna Silver

• Riverside Resources Inc

• ROSEN Group Mexico

• SAMSON Mexico

• Sandvik

• SECRETARIA DE ECONOMIA

• SGS de Mexico

• Siemens AG

• Sika Mexicana SA de CV

• Source Global

• Swedish Embassy in Mexico

• Sysmantec

• TAKRAF Mexico

• The Silver Institute

• Torex Gold

• Total Energies

• Tracsa

• VHG Servicios Legales, S.C.

• Vizsla Silver Corp

• WorldWise Consulting LLC

• Worley Engineering

09:00 UNDERSTANDING THE 2023 OPERATING ENVIRONMENT

Speaker: Leonardo Taylor, Sonora Government

09:30

WHAT CAN THE MEXICAN MINING INDUSTRY DO TO OPTIMIZE COMPETITIVENESS?

Moderator: Carlos Silva, Santacruz Silver Mining Ltd.

Panelists: Michael Wood, Reyna Gold Corp.

Alberto Orozco, Cluster Minero Sonora

Tomás Iturriaga, Fresnillo PLC

11:30 THE PRESENT AND FUTURE OF MEXICO’S MINING LAWS AND REGULATIONS

Moderator: Genaro García, V&A Legal

Panelists: Enrique del Bosque, RB Abogados

Alberto Vázquez, Vázquez, Sierra & García

12:30 THE INSIDE PERSPECTIVE ON STRATEGIC SOURCING PRIORITIES

Moderator: José Jabalera, Independent Consultant

Panelists: Fernando Estrada, Cluster Minero de Sonora

Luis Ibarlucea, First Majestic

15:00 THE ELECTRIFICATION, AUTOMATION AND DIGITIZATION OF UNDERGROUND MINING

Moderator: Gabriel Furlong, AUSTRADE

Panelists: Ariel Navarro, Reyna Gold Corp.

Rodrigo Guzmán, EPIROC

René Valle, MacLean Engineering

Arturo Vaca Durán, Peñoles

09:00 THE DIGITAL MINING REVOLUTION

Moderator: Argenis Bauza, KPMG Mexico

Panelists: José Julio Aguirre, Emerson

Mauricio Orea, Rockwell Automation

Bernardo Marinho, Siemens

Jorge Garate, Minverso

10:00 HOW WILL PRIVATE 4G / 5G AND IOT APPLICATIONS TRANSFORM THE MINING INDUSTRY?

Speaker: Renato Bueno, Nokia

10:30 TECHNOLOGICAL FUTURE OF MINING

Speaker: Baldomero Gutiérrez, Fresnillo PLC

12:00 PRODUCTIVITY-ENHANCING OPPORTUNITIES TO LEVERAGE MATERIALHANDLING TECHNOLOGY AND ORE ROUTING OPTIMIZATION

Moderator: Antonia Talarico, Centric Mining Systems

Panelists: Cynthia Villa, Gruminex & GL Detect

Diego Torroella, TAKRAF

Fred Stanford, Muckahi Inc

13:00 FROM RISK MANAGEMENT TO STRATEGIC RESILENCE

Speaker: Osvaldo Barrios, Fresnillo PLC

15:00 INNOVATION IN MINERAL PROCESSING TECHNOLOGIES, MINING WASTE AND SUSTAINABLE MINE WATER MANAGEMENT

Moderator: Janice Zinck, Nova Scotia Government

Panelists: Sarah MacKay, ERM

Claudia Marquez, Draslovka

Cristina Rodríguez, Minera Cuzcatlán

Jim Norine, Ausenco

16:00 MINING WITH PURPOSE: AN UPDATE ON TOREX GOLD

Speaker: Faysal Rodríguez, Torrex Gold

2023’S MINING INDUSTRY MARKED BY OPPORTUNITY, U NCERTAINTY

Although Mexico is the home of key mining projects, political uncertainty has affected the performance and profits of mining companies. The outlook has improved somewhat as the government has loosened its stance on mining issues in recent years and new demand for key mining outputs materialized. In this environment, local governments in key mining states like Sonora are working to help facilitate mine developments in 2023.

In 2022, external factors such as high inflation caused by the Russian-Ukrainian war and the global economic slowdown stifled investment. However, political uncertainty remains the main challenge in the Mexican mining sector. Nevertheless, the government relaxed its stance on private company participation in the country. For instance, President López Obrador complained about all the mining companies in the country for years but after the North American Leaders’ Summit, he highlighted that Canadian mining companies are an example of responsible mining: the president said the companies care about the environment, have paid their taxes and create a beneficial social impact.

In addition, following the reform of the Mining Law that granted the State exclusive control of lithium resources, uncertainty over strategic mineral concessions grew.

However, the government’s position on the participation of private companies in the lithium industry changed. The president emphasized that he decided to accept private investment, as the development of the new industry requires funding that one party cannot provide on its own.

The COVID-19 pandemic’s disruption in the supply chain, specifically of semiconductors, urged car producers to reduce their reliance on Chinese manufacturers. Now, Mexico is looking to enter this market, which requires key minerals. However, apart from copper, the country is not producing enough of the required graphite, lead, titanium, platinum and lithium, among other resources. “In Sonora, we do not produce minerals like aluminum, which we barely produce in the country. The same goes for cobalt. We must be ready for this new challenge and start looking for opportunities stemming from this new trend in the mining industry,” noted Leonardo Taylor, Director of Mines, the Government of Sonora.

Despite the increased openness to the private sector, some authorities remain unaware of the real workings of the mining industry. This month, Mexico’s Minister of Economy, Raquel Buenrostro, and the Minister of Environment and Natural

Resources, María Luisa Albores González, proposed changing mining legislation to reduce the environmental impact of mining concessions, protect natural areas, prohibit open-pit mining and guarantee the good treatment of communities.

The mining sector is convinced that it is important to foster its management of environmental and social issues, Nevertheless, it also says some bureaucratic processes could be simplified as some of them are doubled. “This is an exclusive issue for the mining sector. While working on regulatory improvement in Sonora, we found that the most common issue is the duplication of permits. SEMARTNAT and PROFEPA for instance, have more than 27 permits that can be streamlined,” said Taylor.

According to Taylor, the government must work on defining a clear set of rules for the mining sector because the rule of law can be excessively restrictive. “We also noticed that when a community complains about a mining project, it leads to a law that ends up restricting mine developments. For example, Indigenous consultations that do not properly determine what an Indigenous consultation is or who can be considered to be Indigenous,” Taylor added.

Another challenge for the mining industry in 2023 is the lack of new projects. According to Taylor, there are over 822 projects on stand-

by, which represents 68% of the projects in Mexico. This has also impacted exploration investment. While less investment in exploration is a global trend, Mexico has been experiencing drops in this area for over nine years.

This situation makes it more critical to restart projects on hold, an issue the Sonoran government is tackling. “In Sonora, over 67 of the mining concessions are unproductive because some concession holders do not develop projects and prefer to use them to speculate. Our task now is to recover these concessions and grant them to companies interested in advancing projects,” Taylor said.

The Ministry of Economy met with local economy ministries to work on a program to identify opportunities and challenges for the mining industry. The efforts will be focused on five industrial sectors: semiconductors, electricity and electronics, agroindustry, medical and pharmaceutical devices and the automotive sector, especially electromobility. The project will lead to the formation of a two-year work plan, diagnose the industrial profile of every state and as simplify as well as standardize formalities. “We realized that if do not identify where to develop industries and simplify bureaucracy, any project will be difficult to be developed. There is much work to do, but we are working on it,” Taylor said.

WHAT MEXICO’S MINING PLAYERS CAN DO TO OPTIMIZE COMPE TITIVENESS

Mexico has several characteristics that make it an attractive jurisdiction for mining. First, its geology has made it a major producer of silver and gold as well as other key metals such as copper. Second, the country has a well-established mining industry. Third, Mexicans have excellent mining skills due to the country’s long mining history. Considering these advantages, experts outlined what the mining industry can do to optimize competitiveness.

Carlos Silva, CEO, Santacruz Silver Mining, said the challenges to increasing profits in the mining sector are clear and divided into external as well as internal factors. As external factors, Silva identifies global and regional challenges as key: issues such as inflation, supply chain disruptions, skilled labor, security and regulation are the most prominent. Silva underlined that the key to remaining competitive in the mining industry relies on cost reductions.

According to Tomás Iturriaga, COO, Fresnillo, everyone has had to face the effects of the pandemic and a subsequent paradigm shift. “As for external factors, there is not much we can do about them but face them. For example, as mining companies, the prices of the commodities we commercialize do not depend entirely on us. Therefore, the opportunity to increase competitiveness relies on cost reductions. Here, the implementation of new technologies and further developing skilled labor are key,” he commented.

“As for external factors, there is not much we can do about them but face them. For example, as mining companies, the prices of the commodities we commercialize do not depend entirely on us. Therefore, the opportunity to increase competitiveness relies on cost reductions. Here, the implementation of new technologies and further developing skilled labor are key”

Tomás Iturriaga COO| Fresnillo

The experts agreed on the importance of skilled workers for the industry and emphasized that a main issue is talent retention. Michael Wood, CEO, Reyna Gold Corp, signaled that although Mexico has many skilled workers, they often decide to work abroad. “Mexico needs to be careful to retain its talent,” he said. Iturriaga underlined the importance of making job offers attractive for new generations to work in mining. “Beyond the competitive salaries, which mining already has, flexibility is also crucial. Offering to work from home and leeway to choose shifts, among other benefits, are also important. New technology enables this,” said Iturriaga.

Furthermore, Mexico’s potential has been overshadowed by the absence of fiscal incentives to invest and the government’s refusal to grant new concessions and permits. “Mexico has so much potential [for mining]. We have benefited from subsidies and I am very optimistic about Mexico’s mining landscape,” said Wood. However, said if the country is to reach its full potential, foreign investment is necessary. According to Wood, the government taking control of private assets scares investors. Additionally, regulation and permit processing also play an important role in investment decisions. “These two are the major headaches we have faced over the past months. Hopefully, the issue will be resolved soon,” he added.

According to Silva, the regionalization of supply chains could offer a wealth of benefits. Supply chain disruptions opened the path to a new paradigm, the trend of nearshoring. The experts said producing supplies near the sites where they will be consumed is a necessity, one that offers opportunity, too.

The industry insiders emphasized the importance of cooperation between the private and public sectors. Alberto Orozco, President, the Sonora Mining Cluster,

highlighted the issue of security. “Some zones are better than others regarding security, sometimes even within the same state. There are many different security issues, including fuel or equipment theft, supply disruptions and mineral theft. Different strategies to tackle these problems are available. We recently signed an agreement with the Ministry of Security to jointly coordinate security matters. It is paramount to work together so that we are aware of the most important security

issues to take better actions together,” said Orozco.

The experts concurred on the importance of addressing security, environmental, social and regulatory concerns to ensure that Mexico remains a top mining jurisdiction in the years to come. To this end, communication is key. Silva argued that to foster more amicable regulation for the mining sector, dissipating misconceptions as well as implementing good practices is vital.

UNCERTAINTY REMAINS A MINING ISSUE DESPITE SOLID LEGAL FOUNDATION

The political uncertainty created by the government has led some companies to consider whether to leave Mexico because their projects are threatened, as players have no clarity on whether new concessions and permits will be approved in the short term. Nevertheless, legal experts emphasize that Mexico already has an excellent regulatory framework for mining operations that could be the basis for further developments in the country.

For years, López Obrador has said that the Mexican mining sector has a serious corruption problem and abused mining concessions. He added that the government therefore must change regulations so

that the mining sector becomes clean, responsible and transparent.

Even though the government assures that no more concessions will be granted, Enrique del Bosque, Partner, RB Abogados, said it is possible to obtain them through a legal process. “The truth is that you are technically able to apply for new concessions, but you are looking at a yearslong process to see them come to fruition and have no certainty that they ever will, at least not with the stance the government has been taking. However, there is a great deal of hope that the transition into a new government in 2024 will introduce new wisdom in the matter.”

Moreover, Del Bosque highlighted that companies should focus on what they have, using this as an advantage while applying for permits with the aim to push political institutions to grant more concessions and highlight the resilience of the industry. Despite the unrest regarding the actions of regulatory bodies, mining players can gain a certain peace of mind knowing that the laws to properly nurture the industry already exist.

Genaro García de Icaza, Partner, V&A Ambiental y Social, pointed toward tools to force resolutions stemming from hostile discourse. “The negative social narrative of Mexico’s mining sector has been spread one-sidedly, without mention of the social and environmental projects the industry has implemented to the benefit of many,” said García de Icaza. The challenge is therefore to figure out how to involve mining experts in the creation of laws instead of leaving this crucial work to misinformed people.

Alberto Vázquez, Partner, Vázquez, Sierra & García, previously told MBN that the sector needs legislation for the rule of law to prevail. “All of the concessions that were canceled are effectively unused and there will be a day when the rights of these territories, in terms of law, will have to be published. Not expanding while also not publishing these rights says that they are above the law. We hope that in Mexico, the rule of law will prevail and not the will of one person or a group of people.”

Furthermore, Vázquez argued that uncertainty will plague the industry for the foreseeable future. In response, the sector

“The truth is that you are technically able to apply for new concessions, but you are looking at a years-long process to see them come to fruition and have no certainty that they ever will, at least not with the stance the government has been taking. However, there is a great deal of hope that the transition into a new government in 2024 will introduce new wisdom in the matter”

Enrique del Bosque Partner | RB Abogados

needs to work on how it communicates the extent of its benefits and how it works to be of value to society. He agreed that Mexico is backed by sound mining legislation. However, as an industry, the mining sector must demand the correct application of the law. “As an industry, we have unconsciously accepted the discourse that we are a sector that steals, pollutes and violates human rights. We have to work hard to erase that unwarranted stereotype,” he added.

Regarding community participation, Del Bosque said communities must come to understand the work of the mine, so they need to have an expert advisor to explain the intricate workings of the mining sector to outsiders. Experts have pointed out that some legal provisions, especially regarding Indigenous consultations, are lacking and should be improved so that companies understand what is expected of them on the social front.

According to José Gutiérrez, President, CAMIMEX, over 822 projects have been delayed due to a lack of permits. Gutiérrez said that since López Obrador took office, permit granting has slowed down because of changes in key ministries. “We were at advanced stages in negotiations with the Ministries of Economy (SE) and Environment and Natural Resources (SEMARNAT). I do not doubt that if this negative to grant new concessions continues, these delays will be higher in the coming years,” Gutiér rez said.

Mexico’s Ministry of Economy reported the concessioned territory for mining activities currently totals 8.59 percent of the total land, 2 percent less than the 10.64 percent registered in 2018. According to Gutiérrez exploration works have become essential since deposits are not forever and minerals are limited. Furthermore, the halt in concession granting will pressure the industry. According to CAMIMEX, just in 2022, mining companies invested over US$502 million in exploration activities, which represents a 28.2 percent increase aga inst 2021.

STRATEGIC SOCIAL AND ENVIRONMENTAL SOURCING STRATEGIES

In 2022, the price of machinery and raw materials increased because of supply chain constraints, which raised production expenses for both equipment makers and end users. Faced with this problem, experts argue that the success of a project now depends on the ability of companies to integrate local talent and resources into their plans. Other than being locally available, suppliers must be environmentally and socially responsible.

Luis Ibarlucea, Director of Supply Chain, First Majestic, said an efficient local supply chain should have standardized equipment to facilitate new projects, feature solid contracts with key suppliers that get involved with clients and visit mining projects to offer tailored service and contractors with proven experience in the mining sector, as well as good team management skills.

Fortunately, Mexico is a highly relevant country for the mining industry. This enables companies to look for local solutions. “We live in a country with a 500-year mining history. This is an advantage because the most important manufacturers of machinery, equipment and technology have offices here. Most of them even manufacture in Mexico, which really makes communication easier,” Ibarlucea added.

He said that sometimes, innovation teams want to bring products or ideas from other countries while Mexico has the same or even higher-quality products. “For this reason, it is important to participate in forums and go to expositions or conventions to see what players are doing in different states. This is where the opportunities are,” he continued.

Cooperation and collaboration are also important to develop a local supply chain and harness innovative operation approaches. “The Sonora Mining Cluster constantly promotes alliances. We seek better practices through contact with embassies to learn what happens abroad, examine successful cases and bring them to Mexico,” said Fernando

Estrada, General Director, the Sonora Mining Cluster. Estrada highlighted the work of the cluster in promoting contact between local suppliers with bigger companies, as suppliers sometimes do not know how to reach major mining players or adapt to the requirements to work with them.

Industry insiders said governments and community leaders today want to encourage partnerships between mining operators and local suppliers since they can add significant value to communities, particularly in marginalized regions. “Suppliers are strategic in this sense because from them we obtain the solutions, technology and innovation. There is room to pivot and collaborate between suppliers and bigger companies to create value proposals that fit updated best environmental, social and governance (ESG) practices,” Ibarlucea said, adding that suppliers should be aware of their limitations so that they do not take on projects beyond their capabilities.

“ESG is an issue for the entire industry to face challenges like maintaining a positive corporate image and optimal operational standards. It is important to create synergies between mining developers and their suppliers, which must follow these standards. It therefore key to build up said suppliers since these companies can then go on to provide greater support in the future as they grow in size,” said José Jabalera, an independent mining consultant.

Ibarlucea highlighted First Majestic’s commitment to develop its local supply chain while collaborating with communities. For instance, the company trains inhabitants of nearby villages to provide services to the mine and teaches them skills that may be a benefit to the community after the mining project finishes.

Several experts emphasized the solution to these problems lies in the localization of materials, suppliers and services. Norine said that one of the biggest advantages of

localization is cost reduction since local talent and materials will always be more cost-effective. In addition, great savings are achieved by reducing shipping costs, customs duties and transportation delays. Building a local supply chain is difficult but the benefits speak for themselves.

Mining companies could make mining a more tech-oriented industry with improved safety conditions. “One of the best-equipped CONALEPs is in Zacatecas, near Peñasquito. It stands out because mining companies help educate students, which in the long term will benefit the mining project. In the future, mining operation rooms will consist of millennials with joysticks and screens rather than people getting hurt with a drill on the ground. Workers will operate their equipment remotely,” Ibarlucea added.

According to Estrada, the notion that new technology will shrink the number of jobs in the mining sector is inaccurate. The same was said when the first computers showed up, after all. On the contrary, new technologies provide workers with more time to think and foster a better decision-making process.

Estrada highlighted the cluster’s commitment to promoting better practices in the mining supply chain. This year, it awarded 46 companies that maintained or were awarded the Socially Responsible Company (ESR) label. “This is always going to be the trend: companies able to combine their service portfolio with a social responsibility strategy will have better opportunities to be a boon to the mining supply chain, one that adds value and provides solutions,” he added.

In addition, industry leaders aim to ensure that environmental and social issues are on the industry’s agenda. “The cluster has a vision of integrating four pillars: investors, academia, the state and society. Together, they are to cover the needs that can arise in any mining project,” he said, adding that “the mining industry today needs capabilities that were previously not considered relevant in the sector,” said Estrada.

AUTOMATION, DIGITIZATION: KEY FOR UNDERGROUND MINING

In 2022, Mexican authorities announced that no more permits for open-pit mining projects will be issued during López Obrador’s remaining term, set to end in September 2024. While some companies are opting more for separate underground operations, others have decided to keep trying to advance their open-pit projects. For those looking to go underground, technological advancements provide a slew of advantages, industry experts said.

Nevertheless, technology does not stall, advancements in technology have altered the outlook for underground and open-pit operations. According to Ariel Navarro, VP Exploration, Reyna Gold, one of underground mining’s biggest challenges is sticking to stricter rules and regulations. “It is very

important to understand that in mining, you do not really choose what type of mining you resort to. Nature chooses and companies must adapt their operations to these conditions,” says Navarro.

There may be a reason why underground mines are less of an issue to Mexico’s government. “Regulation favors underground mining the most because open-pit projects are more eye-catching. Lawmakers appear to be responding to the general public’s concerns. It is clear then that our challenge is a public relations matter,” said Arturo Vaca Durán, Vice President Energy and Technology, Peñoles.

Vaca also emphasized that modern mines must adhere to the strictest security and

“For this reason, it is important to participate in forums and go to expositions or conventions to see what players are doing in different states. This is where the opportunities are”

Luis Ibarlucea

Director of Supply Chain | First Majestic

environmental standards. If the mining sector did a better job of communicating these practices, the perspective on mining and regulation would change drastically.

Furthermore, experts agreed that mining technology has greatly helped to further achieve ESG targets. Among the most beneficial developments, experts mentioned electrification, automation and digitalization. “The mining industry has shown that it can evolve and meet all the challenges imposed on its operations. Today, mining ought to be clean, safe, efficient and friendly to the environment. We should be proud that everyday mining is forging ahead despite these challenges and doing so while improving its practices,” said René Valle, General Manager, MacLean Engineering. Moreover, experts said that by looking at environmental, social and governance (ESG) benchmark compliance, the authorities can be certain that the mining industry is a responsible one.

Valle explained that the deployment of automation and digitization technologies was a great opportunity to attract new talent to the mining industry. Nevertheless, he underlined training and education are paramount to this end. “We are excited

about what the machines are capable of doing but it is the people who control and develop them that truly create value,” he added. Valle pointed out the capacity to train workers under simulations so that they can gain valuable experience without being exposed as a boon to operational safety.

Rodrigo Guzmán, Underground product & Sales Support Lead, Epiroc, discussed the advantages of implementing state-of-theart technology, which is constantly evolving and can tackle production issues, improve safety and protect the environment. However, he recognized investment as a challenge to further implement solutions. “Technology always has a cost and excessive spending can detract further investment. Nevertheless, as we have seen, these investments can be recovered in short periods and dramatically increase safety and productivity. It is our job to demonstrate that these solutions are worth the money,” said Guzmán. “They mean that we can carry out our operations, drastically diminishing safety risks for the personnel,” Navarro concurred.

Automation may add a wealth of value to underground projects. Mining insiders agreed on the advantages of running autonomous

technology in the mines. In addition to this, electrification sets another key trend for mining. According to Gabriel Furlong, Director of Mining Business Development, Austrade, electrification is an energy trend as much as it is a mining issue. He added that the transition toward new electricity technologies is a matter of culture. Furlong therefore insisted on education regarding best practices that can greatly enhance safety standards and productivity results.

“Great strides are being made in optimizing underground mining. Although some developments are still in the initial stages, there is no doubt that we have made progress as an industry. It is important to continue training ourselves and our staff. For this, private and public support is important. Hopefully, these new technologies can also help the public understand that the mining industry implements best practices wherever possible,” explained Navarro.

DIGITALIZATION LEADS TO THE IDEAL MINE

The COVID-19 pandemic accelerated the adoption of technology in various industries, including mining. Experts in the industry agree the sector could be developed further through digitalization and become more integrated as well as responsible. Digitized operations may increase productivity and foster operational safety. However, there are some challenges to tackle, like technological gaps for some older mines and an extensive adaptation process.

The mining industry is known to be hazardous with accident rates among the highest of all industries. Digitalization and automation are tools that can be used to mitigate these inherent risks. Companies, therefore, need to find solutions that can train mining operators to enhance safety, increase productivity and reduce costs. The easy, efficient answer appears to be digitalization. “The use of digital technologies brings benefits throughout the mine’s lifecycle. For instance, new technologies allow us to design mines digitally from scratch, improve productivity through virtual training and plan supplies more efficiently. It also allows us to kick-start

a project quicker and safer,” said Bernardo Marinho, Business Development and Sales Manager, Siemens.

Industry experts agree that the potential for digitized improvement is tangible. Technology can help mining operators to engender fully safe mines without accidents or harmful emissions, use recycled water and prevent discharges, as well as foster a great metallurgical recovery rate and fully optimized productivity. “Our focus is on employees working underground. In Chile, accidents were in the double-digit figures 15 years ago. Now, this number was reduced considerably. However, even having a low 1% accident rate means at least one worker will not go back home and we cannot accept this. For this reason, we focus on virtual learning without risk. Here, we can make mistakes without losing human lives and equipment,” said Jorge Garate, CEO, Minverso.

“The ideal mine of the future is safe, simple, smart, circular in its functioning and sustainable,” said Arturo Vaca, Energy Director, Peñoles. The key to getting there

is digitalization, which is “the biggest lever toward development that the industry has seen in the past 20 years or so,” he added.

One of the main digital trends is remote monitoring, which can help miners make decisions and enable predictive maintenance through AI and automation. Operations can be done remotely to improve safety and cut costs, although cybersecurity would need to be considered, too. In addition, the development of digital twins helps companies to predict output and prevent problems by running a digitized modeled clone of the operation. “Emerson offers algorithms that can learn from past actions and predict when a failure or incident is going to happen through the detection of anomalous behaviors. Our algorithms can be re-trained to adapt to different conditions and positively impact production and energy use. It can also reduce pollution and eliminate risk, among other applications,” said José Aguirre, Latin America Sales Director Software and Services Digital Transformation, Emerson.

Mining is said to be reluctant to change. It is therefore considered to be hesitant to adopt new technologies. Nonetheless, in the past few years, the sector has broken through this paradigm in the mission to increase productivity. A potential breakthrough can be reached through digital and technological innovations that can transform the industry’s key aspects.

Aguirre concurs, highlighting that companies with digitized operations report competitive advantages compared with their competitors in a highly competitive industry. “The digital revolution in the mining industry is already happening. Whoever is not joining the trend is losing points in the market,” added Argenis Bauza, Head of Digital Lighthouse KPMG in Mexico and Central America, KPMG Mexico.

The use of data is important for the mining industry. Nevertheless, technology provides large amounts of information, which could make it difficult to identify relevant findings.

“The sheer amount of available data sometimes makes decision-making more

difficult. Having the context of the information and understanding its correct use is what really adds value to the market. In the end, this makes processes more efficient and safe,” said Mauricio Orea, Heavy Industry Sales Manager, Rockwell Automation.

Experts agreed that there are some barriers when adopting new technologies. Garate identified “neo-phobia” as an issue, a common problem especially apparent in older workers used to work in set ways. Nevertheless, companies risk missing the boat and becoming spectators in the industry if they do not innovate.

Marinho pointed out that older projects are not as capable of adopting new technologies as new projects because they relied on outdated technology. Studies about the technological maturity of a project before construction could therefore help operators to identify technological gaps and create a proper infrastructure fit for future additions. “It is important to have a change management team in parallel to a technical development team for digital transformation programs. Both will work closely with the implementation team and communicate with stakeholders during the technology adoption stage,” he added.

For Orea, fostering a culture based on innovation is key, Nevertheless, this does not mean companies need to acquire vast technological infrastructure. “Mining operators must be specialists in mining, not in technological advances. Of course, they must have some knowledge of technology. At Rockwell, we understand this issue and create synergies with clients to educate them on this issue,” Orea highlighted.

Experts agree that technology is moving at an accelerated pace. New technologies emerge frequently and companies must adapt quickly to these changes. “Almost every month, new technologies are launched, especially in the metaverse. We aim to integrate them into the real world. We must live the industry, not just watch it through a screen,” Garate added.

5G, IOT SOLUTIONS ARE TRANSFORMING THE MINING INDUSTRY

Many mines still lack the communications infrastructure to support the innovation that automated mining operations demand. However, the need to enhance and implement these technologies is becoming increasingly relevant for mines. 5G technology can provide opportunities to the sector, enhancing automation and remote operations that will improve coverage, lower latency and enable higher reliability at every stage of the mining operation.

Renato Bueno, Head of Sales for Digital Industries Latin America, Nokia, shared his insights on the wide array of benefits from implementing 4G and 5G infrastructure to open-pit and underground mining operations. As leaders in 4G and 5G connectivity, Nokia’s Nokia Bell Labs envisions mining operations 10 years in the future to bring technology insights that can support the mining industry in improving connectivity, productivity and safety solutions. The leading trends that guide new technologies for the mining industry in Latin America are efficiency to produce more with the same resources, productivity to retrieve more resources and environmental, social and governance (ESG) benchmark compliance.

5G connectivity will support mine operators in protecting their workers from harm

by creating unmanned mines that are both safer and smarter. Moreover, 5G industrial environments will deliver ultrahigh-definition video and sub-millisecond latency. This enables real-time remote control of high-speed robots and drones and will connect IoT sensors with industrial devices above and underground. “The main initiatives we see in Latin America in terms of safety consider minimizing the presence of operators in dangerous environments. What is more, having real-time information about dangerous activities in the mine means operators can act and prevent any accidents,” said Bueno.

As for productivity, enhanced connectivity offers the fastest automation systems, which eliminate bottlenecks and streamline operations. 5G applications can increase effective production hours by removing downtime, enabling remote operation, increasing transparency and delivering insights toward enhanced critical decisionmaking. These benefits can in turn lead to greener operations.

Nokia said many of its customers in the sector have already begun testing and trialing 5G technology. For example, in Chile, copper company Codelco is running a 5G pilot at its Radomiro Tomic mine. There, high-definition cameras transmit

real-time video from the mine’s crushing area to its new Integrated Operations Center in Santiago, 1,500km away. The Nokia 5G network is expected to increase the facility’s capacity tenfold to capture more data and improve big data applications. This will enable Codelco to analyze waiting and material unloading times almost immediately to optimize its processes.

Communication stability has shifted from a trend to a necessity, especially in underground mining, where internet connections play a key role both in production and safety. The development of higher bandwidth connections is necessary to continue to keep up with the latest technological developments, as technologies such as Wi-Fi or Wi-Max do not function well underground

Bueno underlines the benefits of 4G and 5G connectivity, as these lack the deficiencies that Wi-Fi or Bluetooth operations struggle with. Moreover, according to Bueno, the total impact of digital automation on mining productivity, reaches up to 17.2% in an openpit scenario, which reflects on working hours, retrieved tonnes as well as income and utilit y savings.

The Mexican mining industry seems to have taken an important step in the development and implementation of new technologies. These developments must be accompanied by powerful security systems that fight cyberattacks, considered the Achilles’ heel of this new mining revolution. To this end, Nokia’s connectivity solutions are accompanied by military-grade security systems that protect private mining operations from network problems.

SOFT SKILLS: KEY FOR MINING’S TECHNOLOGICAL FUTURE

Mining companies understand that investment in technology will help them reach their sustainability benchmarks while hitting growth and production goals. This makes technology a central element of mining’s future, leading tech developers to seek to improve safety, sustainability and productivity. However, mining companies must adopt swiftly and consider a broad range of soft skills to make this technology a success.

According to a report by PwC, one of the key factors to maximizing returns lies in how fast mining companies adopt new mining techniques and technologies. “In this future, equipment has a shorter useful life as OEMs continue their relentless drive for greater operating efficiency. Leading mines have onsite recycling facilities as machinery is decommissioned and rebuilt in situ using 3D printing technology. Drones are used throughout most mines, even those

underground,” reads the report. In addition, the consultancy agency says that mine operators with more agile mine plans and cultures supporting change will be the ones rewarded.

Moreover, PwC reports that mining decisions will increasingly become more sophisticated and driven by big data. This will create more certainty about ore body characteristics. “With technology delivering measurements down to the cubic meter, geological ‘surprises’ become a thing of the past and mine managers can effectively mine to order,” writes PwC.

Industry 4.0, digitalization and automation have helped mining operators to make better-informed decisions, thereby improving efficiency. What is more, it has helped to make operations safer for workers, a key priority of the industry. Currently, the three technology areas that mining companies are investing in the most are data analytics, digital connectivity and integrated automation. The investment in cloud infrastructure is also growing in importance and will remain a relevant issue in the technological future of mining. Mine operators are starting to ask themselves how they can transport the data in a safe way, where it is going to be stored and how it will be analyzed, too. Building the right infrastructure to transport and store data will be essential.

Baldomero Gutiérrez, Corporate IT Manager, Fresnillo noted that the issue is whether technologies developed for the mining industry can compensate for low productivity in operations where technologies are not used. While mining companies adopt technologies to build the

mine of the future, the focus on operational excellence is the number one priority on the agenda. Productivity has an acute relevance in the mining industry because companies naturally incur more costs as they dig deeper,” added G utiérrez.

More importantly, Gutiérrez highlighted that any technology must be examined for its potential value regarding processes and people. Regarding people, companies need to support workers to develop the necessary skills to manage the technologies. Leadership skills to maintain a social license are equally essential. “To be agile, companies need to know what technology to implement and when to use it,” he said, adding that “innovation happens at the speed of trust.”

Furthermore, he explained that in an automated and digitized market, soft skills will become imperative because they will differentiate companies in a highly automated, and therefore standardized, mining world. “The change toward a more automated and digitized market is happening at an accelerating pace. Eighty-two percent of business leaders believe that equipment operated by both humans and robots will be the standard in 5 years. In that scenario, soft skills will be more important than ever because they will differentiate us in an automated world,” he said.

Gutiérrez emphasized companies risk becoming obsolete if they do not innovate.

In 2013, Fresnillo embarked on a digital transformation plan and defined two stages: from 2013 to 2018 and from 2018 to 2023, defining the necessary basic capacities that a mining operation needs first.

MATERIAL HANDLING AND HUMAN CAPITAL WILL INCREASE PRODUCTIVITY

When it comes to enhancing material handling, the mining industry must solve ore separation challenges through intelligent machines and plants, say leading experts. Additionally, the need to improve productivity demands higher levels of cleanliness for fluids and water to decrease waste and lower operating costs. The industry insiders concur that having prepared human capital is key to improving th ese areas.

Regarding the handling of materials, tailings dams have long since been identified as risks that might lead to major environmental and social issues. Mining companies should start to look at the adaptation of new technology to replace traditional approaches with higher risks of failing. Diego Torroella, General Director, TAKRAF, explains that implementing an approach such as the Dry Stack Tailings (DST) system offered by his company provides significant environmental and social benefits, as well as financial ad vantages.

Ore sorting technology can generate a major operational shift in the industry due to the importance processing has in the mining supply chain. High-tech companies are developing machines that, using 3D cameras, lasers, inductors and X-rays, can sort any ore and quickly detect its value. This technology can reduce the mining operator’s capital expenditure as well as save valuable energy and water in the process. “Flotation cells are widely used to separate, recover and concentrate valuable minerals. Water reuse systems are also important, as companies require better liquids management to recover most of the increasingly scarce water,” Torro ella said.

According to Alvaro Rendon, Director ECN Scientific, ECN Automation, variations in feed size along with ore composition and grindability strongly affect the mill

performance. Furthermore, the online measurement of these variations is crucial to define the mill throughput model. Product sizes are used to determine the optimal size of the feed for maximum efficiency and determine which feed size losses occur in the plant to reduce these issues. Technology can help to make this process faster and more precise.

Since 2015, deep convolutional neural networks (DCNNs) have been used to efficiently extract features for classification and regression tasks. Using a DCNN for bulk solid size distribution estimation for a conveyor belt is a novel approach. In 2019, the first embedded system using GPUs running DCNN was introduced to measure particle size distribution in fine ore-feeding primary ball mills using highresolutio n cameras.

In addition, Rendon explains that traditional technologies have some limitations in recognizing small rock sizes below 3mm as well as fine ore cracking that can generate segmentation detection errors. New technology based on deep learning techniques guarantees smaller size detection and avoids detection errors.

Since technology represents high upfront costs, companies will be careful with what kind of equipment they acquire. “Technological appliances are difficult to sell. Companies want to see your product being applied somewhere else before deciding their purchase and it becomes even more complicated since they want to see the solution functioning in a project resembling theirs,” said Antonia Talarico, Vice President of Operations, Centric Minin g Systems.

Experts believe that the efficient planning of a mining project is crucial when companies are looking to enhance their productivity. “When designing any system, you must look at all different angles and

integrate these issues holistically to design mining tunnels in the most efficient way,” said Fred Stanford, CEO, Muckahi.

“GRUMIMEX believes in starting from the beginning, it is important to conduct both internal and external analysis to determine which modifications in the mining process should be made. We encourage customers to consider potential changes in the original plan and create adequate spaces for such changes. Doing this will prevent potential bottlenecks,” added Cynthia Villa, General Manager, Grupo Minero Mexicano (GRUMIMEX).

However, industry insiders believe that integrating machinery and technology based on extensive planning is insufficient; companies must take a look at their human

capital, too. Villa mentioned that said bottlenecks are sometimes caused by a lack of effective communication rather than failing technology, which leads to a lack of knowledge of a particular part of the process. Similarly, companies must be careful that their talent is involved in changes if new tech is implemented. “People only resist change when they are excluded from the process, so workers must become a part of this shift. I find it more productive to allow the people that will be affected by the change to have a say in it,” said Stanford.

“Continuous training of workers plays a determining role in technology implementation. It does not matter if you utilize up-to-date equipment if you do not have trained workers or properly communicate with them,” Torroella agreed.

MOVING FROM RISK MANAGEMENT TO STRATEGIC RESILIENCE

Risk management should be an essential part of any industrial operation. Nevertheless, such management approaches can be restrictive, as experts argue companies should move beyond risk management and develop the ability to look ahead by predicting, managing and preventing future risks to gain enhanced efficiency.

Risk management involves identifying, assessing and controlling the financial, legal, strategic, and security risks to an organization’s assets and profits. These risks can stem from various sources such as financial instability, legal obligations, poor strategic planning, accidents and natural disasters.

The strategic resilience required to adequately tackle risks involves anticipating future challenges while navigating present problems and adapting to changing circumstances while maintaining focus on long-term goals. Strategic resilience is forged in a dynamic and fluid operating environment.

Osvaldo Barrios, Chief Risk Officer, Fresnillo, highlights the importance of considering all the possible risks in mining projects to be able to prevent and control them. “Faced with so many variants and risks, I stress the importance of creating different scenarios to be able to visualize how the risks can be managed,” said Barrios.

Barrios thinks every company must start by questioning whether they have identified their operational risks. He divides risks into several categories: the short-term of up to six months ahead, the medium-term of about three years ahead and long-term risks of up to 10 or more years in the future.

According to the World Economic Forum, two of the most prominent risks in 2023 are supply chain disruptions and inflation rates. Being able to source adequate energy may also represent a problem.

Barrios explains that risks associated with environmental, social and governance (ESG) compliance represents are equally key to the mining industry because of their urgency and pressure to meet legal obligations.

“Although ESG issues may become more relevant in 5 to 10 years, when access to water or raw materials becomes more difficult to achieve or when key resources begin to run out, international demands surrounding ESG issues have already been established and require compliance. Therefore, they have a great impact on the mining industry, which cannot be understood without considering environmental and sustainability issues,” elaborates Barrios. Moreover, the increasing

threat of climate change and the demands of communities close to mining sites necessitate more attention and care from the industry.

“Geopolitics also pose a threat. International tension reaches beyond the conflict with Russia, as other disputes could escalate. As we have seen, these conflicts can threaten the stability of supply chains that closely affect the mining industry. Upcoming elections in Mexico and the US will also be crucial factors,” Barrios explained.

Together with the global issue of inflation, increases in operational costs have and can continue to affect the industry. Similarly, access to capital and new business models are issues that need close attention to avoid future setbacks. “We have all been affected by higher operating costs. This is especially clear in the mining industry: the prices of steel, fuel, chemicals and other key inputs have risen. It is therefore important to implement appropriate operational efficiency measures. It is essential to do more with less and maintain good cost records,” said Barrios.

Barrios emphasized the need to pay close attention to talent training and retention. Since talented workers struggle with increases in living costs like everyone else,

the need for competitive compensation stands out.

Subsequently, innovation and digitization represent an opportunity as well as a challenge. “The main challenge for mining companies to adopt innovative solutions and technologies is strongly linked to risk culture. In the absence of such a culture, investing in these solutions is not the main objective. We have to create awareness regarding the importance of implementing a risk culture and getting rid of resistance to change,” he said.

Barrios identifies other two risks for Mexico in particular. “The government’s actions pose a risk to mining operations.

At the beginning of the administration, the authorities declared that no more mining concessions would be granted and even existing concessions were going to be reviewed and possibly withdrawn. This remains a significant risk, so we must work to challenge the negative emotions toward our industry. We must work closely with authorities to foster the necessary tra nsitions.”

Finally, tackling insecurity in Mexico is paramount. “We must bear in mind that we cannot control this in the short term. Insecurity can even increase in the long term and have a major impact. For this reason, we must be attentive to the risks that surround the industry,” Barrios concluded.

INNOVATION: MINING’S NEED FOR WATER AND WASTE MANAGEMENT

The mining industry has gone through significant changes during its history, mainly propelled by new technologies that emerged and altered the operations of thousands of companies. To respond to pressure from governments, investors and NGOs alike, the mining sector is increasingly addressing environmental, social and governance (ESG) issues as a priority matter. As these objectives to reduce waste and increase water reuse grow in importance, technology will further cement the adoption of ESG factors in the mining industry.

“When we discuss sustainability, we are talking about improvement, which is equal to innovation,” said Cristina Rodriguez, Deputy Director of Sustainability, Compañía Minera Cuzcatlán. Companies are using innovative, modern methods throughout the mining process, as these solutions help mining companies to overcome ore-processing

roadblocks and drive exploration efforts while fostering a better environmental and social track record.

One of these approaches is ore sorting, a process in which artificial intelligence (AI) and advanced instrumentation are used to isolate the best ore for further processing. This reduces the overall volume of ore sent to be processed by identifying a smaller amount of higher quality ore, which allows for smaller plants that are more energy efficient, produce fewer emissions and lower the barriers to gaining permits.

In addition, advanced technology is reducing water dependency and softening the environmental impact, for example by replacing chemicals with earth-friendly bio-based chemical agents. Many mines today are enforcing measures to capture rainwater that flows into reservoirs, too. For example, Draslovka invested US$100 million in 2022 to develop glycine leaching to help companies make their use of water more efficient, explained Claudia Marquez, Global Commercial Director, Draslovka.

Public-private projects to source water have also been proven to yield positive results, like the water treatment plant run

“When we discuss sustainability, we are talking about improvement, which is equal to innovation”

Cristina Rodriguez

Deputy Director of Sustainability | Compañía Minera Cuzcatlán

by Minera Cuzcatlán in Oaxaca. This allows the company to source 80 percent of its water from the treatment plant while the remaining 20 percent goes to surrounding communities. The Mexican subsidiary of Fortuna Silver Mines reported that it has never used underground water for its operations at its San Jose mine in Oaxaca. Instead, the company recycles and reutilizes wastewater.

“Waste takes up a lot of real estate, which is limited in Mexico. Being creative with waste drains and tailings is essential, ideally creating a geofill,” said Jim Norine, Vice President of Minerals and Metals, Southwest USA, Ausenco

transport dry tailings through a conventional conveyor belt system and stack them on a pad, similar to heap leaching. The traditional alternative of using a slurry dam and then waiting years or decades for that dam to dry up has proven to be much more complicated.

Although efforts are being made to improve water management, some decision-makers are still reluctant to invest in those solutions. “Since water is not a direct operational risk, it is often not well understood. However, water risks can shut down production or undercut a company’s social license to operate,” said Sarah MacKay, Water Services, ERM. Because the benefits of better water systems are only seen after many years, this adds to the lacking awareness of their value, added Rodríguez.

Furthermore, a key trend in the mining industry is to move from traditional slurry tailings storage toward dry tailings, as around 50 percent of the operators are moving to dry solutions. Tailings are a major issue for mines due to the problems linked to waste management and safety, explained Rodríguez. “Tailings dam failures are catastrophic, dangerous and can cost lives. Dry stack tailings are therefore driving the industry,” added Norine. Companies can

Adopting best ESG practices does not only benefit the environment and the communities involved, however, as companies stand to make solid financial gains. “ESG has become a standard investment requirement. I consider it good for companies, the industry and, more importantly, the environment,” said Norine.

Márquez recommended making ESG a priority for the operational strategy, adopting emerging technologies, understanding regulations, setting targets beyond compliance and involving supply chains to deliver better results. MacKay agreed and highlighted the relevance of having a clearly defined strategy and implementing it systematically.

“Waste takes up a lot of real estate, which is limited in Mexico. Being creative with waste drains and tailings is essential, ideally creating a geofill”

Jim Norine

Vice President of Minerals and Metals, Southwest USA | Ausenco

TOREX GOLD: RECORD-BREAKING YEAR AMID A CHALLENGING E NVIRONMENT

Despite the strong inflationary pressure of 2022 in addition to a slew of challenges for Mexico’s mining companies, leading Mexican gold producer Torex Gold closed an outstanding year as it surpassed production expectations owing to its operational d iscipline.

According to Faysal Rodríguez, Senior Vice President Mexico, Torex Gold, “2022 was an extraordinary year for Torex Gold and our Mexican subsidiary Media Luna.” The company not only met the market expectations of producing between 430,000 and 470,000oz of gold in 2022 but exceeded it by producing 474,000oz of gold, breaking a record for the fourth consecutive year, he added.

Torex Gold is a prominent gold producer in Mexico, its primary assets comprising the El Limón Guajes (ELG) Mine Complex, comprised of the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes Underground Mine and a processing plant. In addition to ELG, Torex has grown its mining operations in Mexico through its Media Luna Project, an advanced-stage development project located 7km from ELG.

The Canadian company’s successful year was distinguished by world-class security

levels, says Rodríguez, who highlighted an incident rate of 0.28. “We have a moral commitment to take care of ourselves, to be generous with security. Beyond the top-notch metric, we exhibit the safety culture that we built.”

While the underground mine had a record 1,600t/d production, the plant also had outstanding results, breaking grinding records. Rodríguez added that the company is focused to continue the good wor k in 2023.

Despite the inflation that raised the costs of key inputs, Torex Gold’s results were possible because of the company’s strong workforce, its financial management and discipline, contract renegotiations, the creation of alliances and operational discipline, says Rodríguez.

Torex Gold operates the Morelos district in the northern part of Guerrero. Media Luna is an underground deposit that primarily contains gold, copper and silver mineralization, located on the south side of the Balsas River. The deposit, hosted in a magnetic anomaly, was discovered in March 2012. The company’s board of directors approved the Media Luna Project in March 2022 and construction is underway, with

anticipated commercial production in 1Q25. The life of mine may be extended through at least 2033 with a firm foundation in the local community and strong relationship with local, state and federal governments, Rodríguez explained.

Torex is committed to the community nearby, including the fully-Mexican local team, and the people of Guerrero, where 70% of the labor force is from. “We feel a double commitment in terms of the environmental legacy that we can leave and on which we will continue working. We will be here until 2033, so we are dedicated to the community, including the new generations of miners in the Morelos district,” Rodrí guez said.

Thanks to its operation, Torex can invest in the community and other priorities such as the environment and sustainability efforts, says Rodríguez. In 2022, Torex invested US$5 million in the construction of a solar

plant, which will generate around 8.5NW of energy and contribute to reducing the company’s carbon footprint.

Torex Gold’s future in Mexico includes the development of the Media Luna project and continuing to foster the relationship with authorities. “We will continue to manage institutional relations with local and federal governments as well as individuals. Torex Gold contributes to the development of the country and the northern region of Guerrero. We will continue adding value with our responsible mining to maintain our accomplishments,” Rodrí guez said.

With continued investments in the decarbonization of operations, strong ties with the local community and over 10 years of production coming in addition to Torex Gold’s strong commitment to values and a dedicated workforce, the company “is poised for a sustained success story in the future,” Rodríguez concluded.