Spotlight: Mexico’s US$9bn mining project pipeline

Mexico’s pipeline of mining projects has expanded past the US$9bn mark following major scope changes at Torex Gold’s Media Luna project, but the timetables of several assets have been pushed back.

The country hosts 23 projects with combined capex of US$9.06bn, compared with US$8.77bn spread across 24 assets in March.

The list only includes assets for which the estimated start-up date, capex and production have been released.

The projects have the potential to significantly bump up output, with combined annual production capacity of 1.36Moz gold, 32.7Moz silver, 364,000t copper, 191,000t zinc and 35,000t lithium carbonate.

MEDIA LUNA REVISIONS

Torex released details of a feasibility study at its Media Luna project in Guerrero state in late March.

The study estimates initial capex at US$848mn, up sharply from the US$496mn previously forecast, partly reflecting the addition of two south access portals.

Production is now expected at 280,000oz/y gold, 15,800t/y copper and 1.3Moz/y silver, compared with 170,000oz/y, 21,000t/y and 1.7Moz/y, respectively, previously outlined.

The project is still earmarked for first production in 2024, with spending of US$220-270mn planned for 2022.

“We always knew that the Media Luna project would be challenging,” CEO Jody Kuzenko said in a release, with the deposit 7km away from existing infrastructure are the El Limón-Guajes operation and across a river, with challenging metallurgy.

COMPLETED PROJECT

Altaley Mining’s US$56.9mn Tahuehueto mine dropped off the list after pre-production mining and milling began earlier in May.

Production is expected at around 26,000oz/y gold.

SCHEDULE CHANGES

The estimated start-up has been shifted back at a number of projects in companies’ recent filings.

Ganfeng Lithium’s US$420mn Sonora lithium project is now expected to begin production in 2H24, a year after the previous estimate, according to a report by former owner Bacanora Lithium in February (Ganfeng has since acquired Bacanora).

No reasons were given for the delay, but the report stated that COVID-19 had impacted the company and its partners.

As a result of the delay, the US$380mn Sonora Stage 2 expansion project – which doubles output to 35,000t/y lithium carbonate in year four – is now expected to come on stream in 2028 at the earliest.

Southern Copper also pushed back the estimated start-up at its US$310mn El Pilar project by a year to 2024.

El Pilar will produce 36,000t/y copper. The timing and metrics of Southern’s Buenavista Zinc, Pilares and El Arco projects are all unchanged.

Sonoro Gold’s Cerro Caliche project has also been shunted into 2023. 

An updated PEA earlier in May put production at 45,000oz/y gold with initial capex of US$26mn, compared with 45,700oz and US$32mn previously reported.

Minera Alamos’ Fortuna gold-copper project has also been pushed back to 2023 at the earliest, with the company evaluating developing its Cerro del Oro asset first.

Fresnillo has not confirmed any changes to the metrics or timing of its projects.