Coeur seeks to expand in Mexico after acquiring Las Chispas

After completing the takeover of SilverCrest Metals, US-based Coeur Mining is seeking to expand its operations in Mexico with the newly-acquired Las Chispas mine and at its Palmarejo mine, said Héctor Araiza Martínez, general manager of Las Chispas.

In mid-February, the Chicago-based company announced it had completed the purchase of Canada's SilverCrest for approximately US$1.7bn, when its Mexican subsidiary signed the definitive acquisition agreement.

"We have two mines in operation as Coeur Mining [in Mexico]: the Palmarejo mine in Chihuahua state and the recently acquired [from SilverCrest] Las Chispas mine in Sonora state, and we have significant investments in exploration and development. So, we believe there is a very good future for us," Araiza told BNamericas during a Mujeres WIM de México event in Mexico City.

When asked which operations the company wants to expand, he responded, "Both projects."

While some expansion permits are pending approval for the two projects, Araiza said they are operating and stable mines. "At Las Chispas, we have small permits [pending] for ventilation work, things of that nature, but it doesn't limit us from continuing to operate," he said.

The general manager also said the company has seen "some signs of improvement" in Mexican authorities' handling of the permitting issue, which he described as "the greatest challenge" facing mining.

"We have participated in several forums where the government's interest in obtaining the benefits that mining generates for society throughout the country is evident," said Araiza.

Last week, Sonora state governor Alfonso Durazo said on his social media account that "the Las Chispas mine in Arizpe is a US$1.6bn project that strengthens our economy and supports responsible mining." He also published photos of his meeting with Mitchell Krebs, CEO of Coeur Mining, to discuss the investment and its development in Sonora.

When asked about the reasons for acquiring a mine in Mexico given the complex circumstances the sector has faced, and now with tariff threats from the United States, Araiza reiterated that Coeur is seeking to expand and will continue to look for projects in Mexico.

"Las Chispas is an asset that generates cash flow and has very good value for the company. So, it acquires the Las Chispas mine, can pay off its debts, and accomplishes several things. It is a fully permitted mine, low-risk with very high grades and very good dividends. It is a top-tier deposit," he added.

Additionally, Araiza said the company has the Picacho exploration project in Sonora, while in the Palmarejo area, many hectares remain to be explored once the pending permits are issued.

Las Chispas is expected to produce 42,500-52,500oz of gold and 4.250-5.25Moz of silver this year. Guidance for Palmarejo is 95,000-105,000oz gold and 5.4-6.5Moz silver.