Mexico’s mining chamber said at least 50 silver, gold, copper and zinc projects are attractive targets for mergers or acquisitions and high metals prices will draw $4.4 billion in mining investment to the country this year.
Sergio Almazan, the head of the chamber, said investment will jump 7.3 percent in 2011 compared to last year, the boost driven in part by expansion plans at the giant Cananea copper mine, owned by Grupo Mexico.
The ground is fertile for acquisitions, said Eduardo Luna, the director of precious metals miner Primero, with 738 exploration projects in Mexico.
“There are around 50 projects that are being studied by different companies that have the possibility to be developed beyond the capacity of their actual owners. Definitely there will be mergers and acquisitions,” Luna said at a chamber event in Mexico City, without naming specific companies.
The most advanced exploration projects in Mexico are already owned by the major mining companies, including Grupo Mexico, Goldcorp and Fresnillo, the precious metals arm of Penoles, Almazan said.
With new projects coming on stream like Fresnillo’s Saucito mine, Mexico’s silver production will jump to 138 million ounces in 2011, up from 128.6 million ounces in 2010.
Gold production is also expected to rise 12.5 percent this year to around 2.7 million ounces.