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2019
Mexico Mining Forum is a high-profile congress that gathers together the national and international leaders shaping Mexico’s mining sector. Taking place each year in Mexico City, this event provides an invaluable opportunity for sector experts to discuss the industry’s hot topics and concerns in an effective and targeted networking platform.
In its fourth edition, Mexico Mining Forum 2019’s agenda was carefully designed by expert analysts and in consultation with business insiders to address the future of the mining industry amid the country’s political transition. Ranging from financing prospects for every kind of project and the achievements of mining clusters, to how best to enhance mine security and implement effective CSR programs, Mexico Mining Forum provides eye-opening outlooks to all industry stakeholders. Through the contribution of 22 high-profile speakers, including
Mexican mining’s top public officials, the dialogue among the event’s high-level and executive guests will result in a constructive and beneficial conversation for the industry.
Mexico Mining Forum also marks the launch of Mexico Mining Review 2019, compiling over 200 interviews, indepth analyses and infographics to offer companies the business intelligence they need to seize the industry’s opportunities. An additional special supplement also brings together the sectors’ voices in a Wish List to the AMLO administration, with suggestions of what mining needs the most from the new government.
Quick Look:
“Fue un privilegio poder asistir y escuchar ponencias tan interesantes y diversas”
Sergio Almazan, Director of ANZMEX
INCLUDING:
∙ Francisco Quiroga, Undersecretary of Mining at the Ministry of Economy
∙ David Guillén, Founding Partner of Rios Ferrer
∙ Renato Urresta, Principal Consultant at ERM
∙ Napoleón Gómez, Senator of the Republic
∙ Rob Peterman, Vice President, Global Business Development at Toronto Stock Exchange (TSX)
∙ Cindy Collins, Founder of Mining Technology Partners and CTO of Geosite
∙ Alberto Mendoza, Director of Zacatecas Mining Cluster
∙ Alberto Orozco, President of the Sonora Mining Cluster
TOP SPEAKERS
∙ Alfredo Philips, President of the Guerrero Mining Cluster
∙ Guido Mangieri, Director of IIoT, Plantweb and Digital Transformation at Emerson
“All
Dante Aguilar, Director and founder of
Super
Rate MX$14,000 + IVA (until 20/12/2019) Early Bird Rate MX$16,000 + IVA (until 17/01/2019) Conference Rate MX$20,000 + IVA (until 12/02/2019)
“We
COMPANY ATTENDANCE
24HORAS
ABB
ABControl
Accendo Banco
Advanced Metal Concepts
Agilent Technologies
Agnico Eagle
Alamos Gold
ALFO
Almer
ALN Abogados
AMSU
ANAF Energy
Analytical Solutions
ANZMEX
Argonaut Gold
Arizona Commerce Authority
Arsenal
Atomica
Aura Minerals
Auramex
Austin Powder
Australian Trade and Investment
Commission
Baker & McKenzie
BASF
Belden
Beltservice
Beumer Group
BIVA
Boart Longyear
Brinks Global Services
Cámara Minera de México
Canada Embassy
Canadian Chamber of Commerce in Mexico
Candelaria Mining
Carrizal Mining
CEC Mining Systems
Cereceres Estudio Legal
Cliveden Trading AG
CLUSMIN
Cluster Minero de Sonora
Cluster Minero de Zacatecas
Coeur Mining
COMEX
Consultoria en Minería Responsable
Contratos Asfálticos de México
Corporación Ambiental De México
Cyanco
DBR Abogados
DEACERO
Deasarrollos ROD
Deloitte Consulting
Delta Solutions
Depreux, COBRA Group
DHL
Discovery Metals
DMV Consultores
Dräger
DSI Underground
Durango Ministry of Economy
Eagle Mapping
EagleBurgmann
ECN Scientific
El Financiero
Elastomeros TAZA
Emerson
Enestas Energy
ERM
Esseco
Estrategias Financieras
Excellon Resources
EY
Eyenesa
FIFOMI
First Majestic
FLSmidth
FMSC
Forbes (México)
Fortuna Silver Mines Mexico
Fresnillo
Frisco
Ftech
FUCASA
Fullspectrum
GDI
Geosite
Geotech
GlobeXplore
Gobierno del Estado de Zacatecas
GoldCorp
Golder
Grupo BAL
Grupo BMV
Grupo GAP
Grupo Goldcorp México
Grupo IPS
Grupo México
Grupo Minero Bacis
Guerrero Mining Cluster
Guerrero Ministry of Economy
Gustavson Associates
Haynes & Boone
HERRERA Y SATO
Hexagon Mining
Hogan Lovells BSTL
Holcim
Huawei
ICSA DIVISION MINERIA
IDS
IMDEX
Infraestructura Minera
Intelligent Social Investment
Invenergy LLC
JOGMEC
Komatsu
KPMG
Lasec
LATAM Ventures
Layher
Legalmex
LiuGong North America
MacLean Engineering
Mag Silver
Magna Gold
MAN Energy Solutions Mexico
Martin Engineering
Master Drilling
Matco
Mercuria
MergerMarkets
Metso
Mettler Toledo
Mexican Academy of Environmental Impact
Mexico Mining Review
Michelin
Minera Alamos
Minera Cascabel
Minera Cuzcatlán
Minerales Teran
Minero Diesel
Ministry of Innovation and Economic
Development of Chihuahua
MK METAL TRADING MEXICO
Monarca Minerals
MRI Andina Trade
MULTISISTEMAS DE SEGURIDAD
INDUSTRIAL
Mundo Minero
National Oilwell Varco (NOV)
New Gold
Notimex
Nouryon
OHL Mining
Olympus
Orica
Outotek
Pan American Silver Mexico
Partido del Trabajo
Peñoles
Pewag
PPG
Prodexa
PROFEPA
Proméxico
PwC
RAMADASA Desarrollo Sostenible
RB Abogados
REFORMA
RH Shipping
Rios Ferrer
Rockwell
Sandvik
Santa Cruz Silver
Santamarina Steta
Schneider Electric
SECOPSA
Secretaría de Economía
Seequent
Senate
SGS Minerals Services
SHB Perforaciones
Siemens Mining
SITRAK
Sitsa
SKF
Solenis
Soluciones Ambientales
Solum Consulting Group
Sonora Mining Cluster
Profile of Attendants
Sonora Ministry of Economy
Sotrafa
SRK Toronto
Subsecretaría de Minería
Sumitomo Corporation
TAKRAF
TBM
TDM Mexico
Techint
Teck Resources
Técnica Salgar
Telson Mining Corporation
The Business Year
The Chemours Company
The Economist
Thermo Fisher
This is noble
Timken de Mexico
TMC (TRANSPORTES MINEROS DEL COBRE)
Top Energy
Torex Gold
Toronto Stock Exchange
Trafigura
Trafigura México
V&A Ambiental y Social SC
Vander Capital
VDMV
VEGA Measurement
VHG Servicios Legales
Victaulic
Vinton Steel
Vulkan
W.W.WILLIAMS SOUTHWEST DE MEXICO
Wood
Zacatecas Mining Cluster
PROGRAM
08:00 REGISTRATION
08:30 A NEW VISION FOR THE INDUSTRY – SEXENNIAL OBJECTIVES
Speaker: Francisco Quiroga, Undersecretary of Mining at the Ministry of Economy
09:00 GRASSROOTS APPROACH TO CSR: HOW TO ADEQUATELY INVOLVE COMMUNITIES AND SOCIETY IN PROJECTS
Moderator: David Guillén, Founding Partner of Rios Ferrer
Panelists: Renato Urresta, Principal Consultant at ERM
Mario Salomón, Country Manager of Multisistemas de Seguridad Industrial
Luiz Camargo, Director of Finances and Corporate Affairs of Minera Cuzcatlán
José Antonio Berlanga, CEO of Telson Resources
10:00 NETWORKING COFFEE BREAK
10:30 INDUSTRY INSIGHT ON STRENGTHENING MEXICO'S SUPPLY CHAIN
Moderator: Hector Quezada, Director Mexico of Victaulic
Panelists: Alberto Mendoza, Director of Zacatecas Mining Cluster
Alberto Orozco, President of the Sonora Mining Cluster
Alfredo Phillips, President of the Guerrero Mining Cluster
11:30 THE DIGITAL TRANSFORMATION IN MINING
Presentation: Guido Mangieri, Director of IIoT, Plantweb and Digital Transformation at Emerson
11:45 NETWORKING COFFEE BREAK
12:15
OPEN-SOURCED DATA: THE INDUSTRY'S NEXT FRONTIER?
Moderator: Cindy Collins, Founder of Mining Technology Partners and CTO of Geosite
Panelists: Antoine Caté, Structural Geology Consultant at SRK Toronto
Danté Aguilar, Founder and Director of Geotech and Exploration Support
Lynda Bloom, President of Analytical Solutions
Ben Pullinger, Senior Vice President of Geology at Excellon Resources
13:15 NETWORKING LUNCH
14:45 CLOSING THE GAP BETWEEN CAPITAL AND PROJECTS
Moderator: Sara Warden, Senior Editorial Manager at Mexico Business Publishing
Panelists: Carlos Silva, Director General of Carrizal Mining
Robert Peterman, Vice President, Global Business Development at Toronto Stock Exchange (TSX)
Alfredo Tijerina, Director of FIFOMI
Javier Reyes, Chairman of Accendo Banco
15:45 HUMAN CAPITAL: THE PEOPLE BEHIND THE PROJECTS
Speaker: Napoleon Gómez, Senator
16:15 NETWORKING COCKTAIL
KEY SPEAKER
FRANCISCO QUIROGA
Deputy Minister of Mining at the Ministry of Economy Francisco Quiroga has more than 18 years of experience in relation to the mining industry. He has a background in directorial positions at several major mining-metallurgical companies, such as Villacero, ArcelorMittal and Metalcorp. His history with the Ministry of Economy dates back to 1997 when he served as Trade Remedies Director in Safeguards and Antidumping until 2002. Quiroga studied a BA in Economics at UANL, has an MA in Economics from Yale University and MS in Operations Research from the University of Auckland.
GOVERNMENT ADOPTS ACTIVE ROLE IN THE INDUSTRY
Hoping to give certainty to industry participants, Undersecretary of Mining at the Ministry of Economy Francisco Quiroga showcased the government’s strategy to work toward a mining sector that can work harmonically to contribute to the country’s pacification and reconciliation. “We can collaborate toward peace, justice and prosperity, which will be the legacy of the new administration,” he said on Wednesday during the keynote speech of Mexico Mining Forum 2019 at the Sheraton Maria Isabel Hotel in Mexico City.
Quiroga opened his presentation acknowledging that perception regarding the national mining industry is taking on negative connotations. To fix this, the new administration at the Undersecretariat has established an industry policy that includes all players and has a long-term vision focused on innovation, diversification and inclusion. According to Quiroga, the Undersecretariat of Mining will be at the helm of this transformation, acting as “a leader and facilitator for the industry and as a mediator when needed in an honest and impartial manner.”
All public industry agencies will have a role in strengthening the national industry, said Quiroga. The Directorate General of Mining, for example, will work on fixing its processes and working toward digitalization. “Our response times are an embarrassment and an obstacle in project development and termination,” he says. “By the end of the administration, we want full digitalization of paperwork, which will help us tackle the backlog in concessions.”
Quiroga also mentioned the Mexican Geological Survey, which he says will become an industry authority with credibility, and the Mining Trust Fund, which will have the mandate of ensuring funds reach communities, thus maximizing the opportunity of new projects being welcomed.
Among its general goals, the Undersecretariat wants to implement new models based on best industry practices and sustainability. Quiroga highlights Canadian TSM standards as a way to improve the industry in Mexico, as well as closer collaboration with communities to help projects move forward and make mining a driver for economic development. “Even when we get a ‘yes’ from communities, that sometimes turns into a ‘no’ due to lack of communication and participation,” he said.
The Undersecretary was not afraid to address the elephant in the room as well, saying that the country must break the stigma regarding mining and the ideas on lack of safety. Under the new administration, Quiroga says the government will work to eliinate fatalities or natural disasters caused by mining activities, mainly through direct and honest communication between government dependencies and with the private sector. “We want to look forward and find solutions to the industry’s problems, creating alliances with the private sector and with other government institutions and consolidating wills and mindsets,” he said. “Our sole objective is to boost the mining industry for the benefit of the country.”
“A leader and facilitator for the industry and as a mediator when needed in an honest and impartial manner.”
Francisco Quiroga, Deputy Minister of Mining at the Ministry of Econom
COMMUNICATION BETWEEN MINING COMPANIES AND COMMUNITIES: KEY TO A MINE’S SUCCESS
Many complex calculations lay behind the success of a mining project. Chief among them is the relationship with the local community. A good relationship can mean smooth sailing, while a troubled one might lead to delays and even mine closures. During the fourth edition of Mexico Mining Forum, panelists agreed on the importance of this relationship and analyzed best practices to ensure a successful approach and impact on the local community.
“Involving society in the mining process is now a real demand that requires the participation of the entire industry,” said Moderator David Guillén, Founding Partner of Rios Ferrer, on Wednesday at Sheraton Maria Isabel in Mexico City. Guillén highlighted the importance of the sector to Mexico’s economy, especially considering that it represents 4 percent of the country’s GDP.
The economic impact of the mining industry goes far beyond its mayor players. He adds that 70 percent of Mexico’s mining sector are micro companies with less than 10 employees and highlights that these economic benefits can also trickle down to the community living next to a mining project. However, change is often seen with distrust so companies must ensure that communities feel involved in the changes that are happening to their surroundings.
The relationship between operators and the community is key to the mining company, explained Luiz Camargo, Director of Finances and Corporate Affairs of Minera Cuzcatlán. He quoted a study by EY that identified “permission to operate” among the Top 10 major risks for a mining company, which refers not just to government approval but permission from the local community where the mine is located. José Antonio Berlanga, CEO of Telson Mining Corporation, agreed on the relevance of involving communities from the start of the project. “It is necessary to begin projects by communicating with local communities or they can halt these projects,” he said.
Renato Urresta, Principal Consultant at ERM, did not skirt he image issues that might pose concerns to local communities. “The mining sector is a development engine but it is still controversial. One of the reasons is its strong link to poverty, as communities close to mining projects have a 76 percent poverty rate.” However, he highlighted the role mining projects can have in improving said communities. “It is necessary for companies to work closely with local governments to empower these mining communities.”
KEY SPEAKER
JOSÉ ANTONIO BERLANGA
CEO of Telson Mining Corporation
José Antonio Berlanga began his career at Minera Autlán, in the Molango Unit, where he designed and implemented fundamental changes in the production system to increase production and savings. Later, he worked at Peñoles, where he participated in the evaluation, design and construction of several of the group’s mining units. In Sonora, Berlanga started one of the first gold heap leaching operations in Mexico at the La Amelia Mine. As an entrepreneur, he has attracted tens of millions of dollars in investment to Mexico.
HIGHLIGHTS 2019
“It is necessary for companies to work closely with local governments to empower these mining communities”
Renato Urresta, Principal Consultant at ERM
Through research of the social impact of the mine it is possible to create strategies to act in the area and develop agreements with local communities to develop win-win situations for both parties, agreed Camargo.
As mines can last for up to 50 years, staying for long terms allows companies to develop complex community projects to empower the local population, explained Urresta. He called on the audience to analyze their own engagement plans with local communities and measure their impact. The speaker highlighted the importance of developing social engagement teams from the beginning of the project that support community from the beginning. “If we don’t develop social engagement plans, the mining sector will face an increased resistance in local communities.”
The impact of a good relationship might extend far beyond he company and the community. “Companies generate platforms alongside the local authorities that lead to the pacification of the state,” said Camargo referring to Mexico’s insecurity concerns and how they affect mining companies. Mario Salomón, Country Manager of Multisistemas de Seguridad Industrial, agreed on the three-part link between mining operations, community and safety. “The most important aspect of security is prevention, for that reason we strongly promote personal responsibility among our employees,” said Salomón.
All speakers agreed that a mine’s success often relies on fully understanding the area it is located in. Camargo used a project in Oaxaca as an example. As the region has a significant number of indigenous communities, the company performed a comprehensive sociological study to fully understand local customs and develop strategies to promote social development. The other speakers agreed, with Berlanga going on to summarize the panel. “The most important thing is to ensure close communication with the community at all times.”
ALLIANCES AND INNOVATION TO BOOST MEXICAN MINING SECTOR
The success of any business lies on the strength of its supply chain, and mines are no different. The mining industry’s value chain is a key area of opportunity for Mexican companies and none more so than operators who are the top stakeholders. During Mexico Mining Forum 2019, which took place in the Sheraton Maria Isabel on Feb. 6, panelists discussed the importance of creating stronger alliances throughout not only the supply chain, but also with government and educational institutions to truly foster the growth of the Mexican mining industry.
During the event, Hector Quezada, Director Mexico of Victaulic, led the discussion of the panel that discussed strengthening Mexico’s supply chain to understand the importance of technology, education and innovation in the mining supply chain and the role clusters are playing.
Although the clusters are rather young, the Zacatecas, Sonora and Guerrero Mining Clusters are working arduously to professionalize SMEs and promote the use of technology to boost the efficiency of the sector, the participants agreed. “Clusters play a vital role in the mining sector and in the last few years we have focused greatly in the evolution of local companies and assisting them to professionalize their processes with the help of educational institutions,” said Alberto Mendoza, Director of Zacatecas Mining Cluster.
As for the Sonora Mining Cluster, its main focus has been sustainability. It is currently the only mining association that is certified in Social Responsibility, striving to take down barriers between local communities and miners. Alberto Orozco, President of the Sonora Mining Cluster, discussed how the cluster is identifying indicators that will help find areas of opportunity within the supply chain and monitor how companies are flourishing and how to help them grow even faster.
The Guerrero Mining Cluster is the youngest cluster in Mexico. “The state’s situation is far more complex due to the insecurity problems that exist. Our main goal is to help protect investments and help them grow,” said Alfredo Philips, President of the Guerrero Mining Cluster. The vast majority of the companies in Guerrero are small and have only one asset in operation. Professionalization is a priority for the cluster, but the state’s unique situation makes transparency extremely important in order to not only attract more investment, but to retain it.
Integrating new technologies is a great challenge for Mexican mining companies and requires a great deal of training. Each cluster is approaching universities and research centers to create more learning and training opportunities for miners. The Zacatecas Mining Cluster is currently developing a research and science center to help companies bridge their technology gap. Guerrero is working toward creating specialized programs to help increase local companies’ skills.
All clusters agreed that exploration activity has declined in the last few years and this is beginning to pose an important challenge for the industry. Orozco explained that Sonora experienced a boom in 2012 where it created great value, new mines opened and renewed operations. Nevertheless, many are reaching the end of their life cycle and have yet to generated new reserves. “We need to place a bet on exploration to continue generating jobs,” said Orozco.
All panelists agreed that 2019 will be a year of collaboration, where the mining clusters will all prosper together. “But it will not be the same alliances and collaboration as before. More players will be involved, including NGOs, mayors, municipal presidents and educational institutions,” said Phillips.
This also involves a closer relationship with communities. Orozco insisted that companies will have to step out of the box to not only integrate technology and innovation, but to integrate communities in order to be truly sustainable. “The community aspect needs to be done correctly from the very start or else it will continue creating setbacks in the life cycle of a project. Everybody in the chain must be aware of the social and sustainable implications their operations have,” said Orozco.
KEY SPEAKER
ALBERTO MENDOZA
Director of Zacatecas Mining Cluster Alberto Mendoza is the Director of CLUSMIN. Prior to joining the cluster, he was Director and Founder of the Monterrey Institute of Technology and Higher Education (ITESM) Fresnillo Campus. Mendoza is also a member of the Board of Directors of the Zacatecas’ Polytechnic University and a member of Conacyt’s Technical and Administrative Committee for the State of Zacatecas. He has a Bachelor’s in industrial engineering and a Master’s in administration from ITESM.
KEY SPEAKER
GUIDO MANGIERI
Director of IIoT, Plantweb and Digital Transformation at Emerson Guido Mangieri is an accomplished business executive with over 18 years of experience in the automation industry. He is Director of Industrial Internet of Things (IIoT) and Plantweb Digital Ecosystem for Latin America at Emerson, a role through which he leads digital transformation, operational and project programs to help technology and manufacturing companies achieve top-quartile positions in their markets. Mangieri holds a BS in chemical engineering from Instituto Tecnológico de Buenos Aires and an MBA from Universidad Torcuato Di Tella.
DIGITAL TRANSFORMATION DEMANDS PLANNING, GRADUAL IMPLEMENTATION
Even though IoT has become a buzzword in many industries, few players know the best way to adapt their processes to such disruption. For Guido Mangieri, Director of IIoT, Plantweb and Digital Transformation at Emerson, it is all about understanding how technology can add value to the productive process and gradually escalate implementations. “Think big but start small and measure, then replicate and amplify successful results,” he said during Mexico Mining Forum 2019 at the Sheraton Maria Isabel Hotel in Mexico City.
According to Mangieri, an Emerson survey found that 90 percent of the industry leaders interviewed thought a roadmap was critical to reaching digital transformation. However, 78 percent of these companies also found that pilot automation systems were normally hard to homologate with other processes. “Scalability is key,” says Mangieri, “as well as investment in human capital development.”
Following Emerson’s roadmap toward digital transformation, companies must first map their KPIs in four key areas: safety, reliability, productivity and energy and emissions, coupling results with KPIs regarding two enablers: organizational effectiveness and systems and data. “Mapping these indicators can help to develop a vision regarding the future of the company, providing a roadmap to gradually incorporate manual inspection, equipment monitoring, predictive analysis, all the way to full automation,” says Mangieri. “You cannot control what you do not measure.”
Referencing Emerson’s survey, Mangieri said over 60 percent of all companies interviewed think IoT is ready for industrial applications and highlighted the US$430 billion opportunity that exists in improving project performance. However, he also acknowledged there is still some reluctance to board the innovation train. According to Emerson’s survey, most companies consider risk aversion and conflict with status quo their main obstacles to implementing disruption and innovation, while budget constraints are among the least important reasons.
Coercing players to make a change, Mangieri used a well-known game theory model named the Prisoner’s Dilemma to exemplify what could happen to companies that fail to adapt to new technologies. “If everyone innovates, there will be a maximization of market benefits,” he said. “However, if a company fails to adapt, it will lose its position in the market.”
BIG DATA CAN HELP THE MINING INDUSTRY, IF THE INDUSTRY LETS IT
Thanks to technology, companies are increasingly acquiring real time information that allows them to make faster decisions that directly impact their profitability and expenses. While some of the of the principles of IoT are increasingly reaching the mining sector through specialized tools that measure and process real time data, companies have been reluctant to fully implement this technology, agreed panelists on Wednesday at Mexico Mining Forum 2019.
“Realtime information will become essential to mine operations,” said Cindy Collins, Founder of Mining Technology Partners and CTO of Geosite. “Technology is placing us closer to real time information from the field. We can use this information to make important real time drilling decisions such as continuing drilling or move to another place.” She explained that companies can use real time data to better understand the mineral potential of a site and avoid wasting money drilling in the wrong place. Considering the numerous advantages, she asked panelists: “why has this methodology not been widely adopted?”
Lynda Bloom, President of Analytical Solutions, recognized the potential of new measuring equipment to provide faster information with which to make decisions. However, the information the equipment provides is still not sufficient, she added. Ben Pullinger, Senior VP of Geology at Excellon Resources, agreed. “Handheld equipment allows for precise measuring of small samples but a comprehensive analysis is still required before starting operations,” he said.
Another barrier to the complete implementation of IoT in the mining sector is cost. Antoine Caté, Structural Geology Consultant at SRK Toronto, explained that “adopting new technology requires time and money. If everything is going well in an ongoing project, the company does not want to try anything new. It will only do so if there is a problem, however by that time it is often late.”
The investment goes beyond the acquisition of equipment as companies must train their personnel on the use of the new machines. “Adopting new technology might feel quite threatening because it involves changing people’s jobs,” said Bloom. The problem, summarized Pullinger, is that no one wants to be the first. “Often early adoption comes at high costs, while adopting it later often means that there are more people that already are proficient with the software.”
However, ignoring the data can also be expensive. “With more data, you can make more decisions. So, it is necessary to factor the cost of lacking this data in the operation. Without using the data, companies will spend more money,” said Danté Águilar, Founder and Director of Geotech and Exploration Support. Caté agreed. “By not using this technology we can lose a lot of money. Having this information might allow a company to decide whether to continue drilling or not.”
KEY SPEAKER
CINDY COLLINS
Founder of Mining Technology Partners and CTO of Geosite Cindy Collins moved from Canada to Mexico in 2015 as a technologyfocused business development professional in the mineral exploration and mining industry. She has studied civil engineering technology, information technology and business and has been an adopter, user, implementer, recommender and representative for various technologies, from data management to field instrumentation. She recently launched her company and podcast, Mining Technology Partners.
“Handheld equipment allows for precise measuring of small samples but a comprehensive analysis is still required before starting operations”
Ben Pullinger, Senior VP of Geology at Excellon Resources
Once companies decide to adopt the technology, the next challenge to address will be processing all that information. “Information will come from many different companies, all with different ways to upload this data. The mining industry uses a lot of proprietary software, so data collected by one source cannot be read by another,” said Caté. However, once the initial investment is made, data collection will benefit many across the sector. “There will be a large amount of data, true, but different people will want different things from this data. Specific tests can only be used for a specific reason but a single data set can address the needs of many different people,” he added.
HIGHLIGHTS 2019
KEY SPEAKER
CARLOS SILVA Director General of Carrizal Mining
Carlos Silva is a mining engineer with expertise across various areas of the mining environment, including socialpolitical, labor safety, environmental, productivity and efficiency of operations, financing and accounting. He is Founder and Director General of Carrizal Mining, which operates the Zimapan mine in Hidalgo, as well as being Director General for Tres Generaciones de Mineria, a mining service provider with expertise in mine construction. He is also COO of Santacruz Silver.
BRIDGING MINING FINANCIAL GAP THROUGH BETTER COMMUNICATION
Within the mining industry, raising funds is an arduous task. The industry has capitalintensive projects with high risks that not all financial institutions are ready to take on. During Mexico Mining Forum, which took place on Feb 6. at the Sheraton Maria Isabel hotel in Mexico City, panelists discussed how the industry could come together to close the gap between capital and mining projects in Mexico.
FIFOMI is Mexico’s mining development bank and is usually the gateway for companies entering the industry. “We want to be the seed of the industry through supporting micro companies in Mexico which is one of the most unattended sectors. It is a sector that requires a great risk and in order to provide them with the necessary support, we must create alliances with government entities to share the risk,” said Alfredo Tijerina, Director of FIFOMI.Sara Warden, Senior Editorial Manager of Mexico Mining Review led the discussion on how financial institutions are adapting to the unique needs of mining companies and how the industry itself can obtain more funds. Throughout the discussion, the need to better communicate financial options and to provide industry specific solutions were the main points of discussion.
The Mexican financial market continues to develop but some mining companies such as Carrizal Mining have found it easier to raise capital through international stock exchanges. “On TSX there are 130 issuers that have a project in Mexico. The blend between Mexican and Canadian expertise adds great value. We are seeing a great amount of family-owned businesses looking to list on the stock exchange and more and more private equity companies are also looking to share the risk,” said Rob Peterman, Vice President, Global Business Development at Toronto Stock Exchange (TSX).
From the perspective of an operator, Carlos Silva, Director General of Carrizal Mining believes that the country’s lack of financial structure specialized in mining makes it difficult for companies to raise funds. “As a Mexican mining company, it was difficult to receive funds to carry out our projects, but when we became a public company, funds poured in. We were able to invest US$60 million in the span of three years. This was because utilities were reinvested in the company constantly. The type of money the industry needs is only available in the stock exchange,” said Silva.The complexity of the Mexican market encourages the specialization of financial institutions. Accendo Bank has been in the market for over 20 years and has participated in many mining operations. “We have an expertise that I believe is unique in the industry. We look to banks such as FIFOMI as allies,” said Javier Reyes, Co-CEO of Accendo Banco.
“Miners are going to institutions that have the best communication. We must start tearing down communication barriers and allow information to flow freely throughout the industry”
ALFREDO TIJERINA, Director General of FIFOMI
But with institutions such as these, Warden asked if the financial gap was instead a communication gap between the funding sector and the miners. According to Tijerina, there is a communication gap and a lack of information to the industry. “Miners are going to institutions that have the best communication. We must start tearing down communication barriers and allow information to flow freely throughout the industry,” he said.
“The financial gap is not covered and it is the biggest area of opportunity in the industry. There are signals that the cycle is changing, and with it will flow more capital. There are few Mexican companies willing to take the leap to become a public company, and it is not just in the mining sector. As long as companies keep doing the right thing and setting the example, more money will continue to flow,” Reyes concluded.
HUMAN CAPITAL IRREPLACEABLE ASSET
Echoing the plan stated by the Undersecretary of Mining at Mexico Mining Forum 2019 at the Sheraton Maria Isabel hotel in Mexico City, Napoleón Gómez, Senator and President of the Congress’ Work and Social Provision Commission, highlighted the importance of a social approach in mining operations and the role of human capital in boosting efficiency and productivity.
“To this day, all government offices tout growth in the mining sector, as well as the new technologies being implemented to boost efficiency. However, very few mention the role of human capital in this process. Human capital is the most important asset of any company,” said Gómez during the closing presentation of the forum.
According to Gómez, the country must integrate innovation and human development strategies to boost social development, not only because of social justice but to boost demand and purchasing power. To do this, however, the country needs a new corporate culture more in line with social and environmental issues. Gómez highlighted security as one of the main national issues that could be addressed through mining development. “Mines are normally located in remote areas with limited access to economic activities,” he said. “If workers are deprived of the opportunity to participate in mining activities, they tend to turn to criminality.”
There is political will to help the mining sector grow but this must be done with a social approach, based on education, human capital development and environmental sustainability. “In many industries, client is king. However, we should make human capital the main focus of our operations,” he said. “By doing this, we will see a result in productivity and the image of the company.” Gómez also put countries like Finland and Chile as examples of how a social approach can make Mexico a leader in welfare and mining productivity.
Safety and security are also key topics for legislators according to the Senator, especially considering the working conditions in this industry. “Mining has always been the most dangerous activity in the national economy, which is why it is imperative to reduce risks and improve safety and hygiene standards in the industry,” said Gómez.
The topic is already on the government agenda, as well as the potential risk that growing automation and Industry 4.0 could pose to human labor. According to Gómez, the global automation rate will increase from 33 percent to 75 percent in the next fie years, leaving 47 percent of all workers in North America at risk of losing their job. He is positive about the industry’s future, though, saying “there is no technology or artificial intelligence that could replace the human workforce in its entirety to this day.”
NAPOLEÓN GÓMEZ
Senator and President of Work and Social Provision Commission Napoleón Gómez is a Senator of Mexico and President of Congress Work and Social Prevision Commission. Prior to his work in Congress, he was Director General of the Mexican Mint for 12 years. Gómez also served as Secretary General of the Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la Republica Mexicana. He has been awarded several international prizes, including the Meany-Kirkland Human Rights International Award.
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SHERATON MARIA ISABEL
MEXICO CITY
FEBRUARY 12 , 2020
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PRELIMINARY PROGRAM 2020
8:30 STATE OF THE MINING INDUSTRY
The AMLO administration won the 2018 election by advocating change and subsequently set out its goals in the National Development Plan. This presentation from the Undersecretariat of Mining looks at the administration’s successes and setbacks related to the country’s mining industry during its first year in office, evaluates the actions that the Mexican government has undertaken to enhance the performance of the sector and the impact these actions have had on the industry’s value chain. It will also detail what comes next.
9:15 EXPANDING EXPLORATION: BOOSTING RESOURCES AT EXISTING PROJECTS
Keeping a healthy project pipeline is not only about finding new deposits but also about expanding existing ones. In a brief project overview, this presentation will describe a successful example of expanding a Mexican project to extend its mineral reserves and prolong its mine life. It will also detail the tools and strategies that are best helping big operators succeed in renewing their projects.
9:30 DEPLOYING TECHNOLOGY TO BOOST BROWNFILED AND GREENFIELD DISCOVERY POTENTIAL
It is said that Mexico’s mineral potential is less than 40 percent explored. To get to the remaining territories, exploration accuracy will be a fundamental necessity. But that is easier said than done as finding a feasible mineral deposit in the country’s vast untouched lands is like finding a needle in a haystack. Geological expertise combined with technological innovation and governmental support are essential to finding the minerals still hidden across the Mexian panorama. This panel addresses the landscape behind finding and exploiting new project opportunities.
10:15 NETWORKING COFFEE BREAK
11:00 DEVELOPING WORLD-CLASS DEPOSITS
Discovering a world-class deposit can be like finding a hen that lays golden eggs. But finding the ore is not enough; there is a complex and multi-faceted apparatus that makes its exploitation feasible. This presentation, featuring two leaders of such projects, will address the dos and don’ts when developing world-class deposits in Mexico.
11:30 THE VALUE CHAIN BEHIND A SUCCESSFUL PROJECT DEVELOPMENT
Once the mineral reserves are proven and the project is determined to be feasible, the operator undertakes the great task of developing the new project, often from scratch. The goal is to ramp it up to efficient and cost-effective production. But no miner succeeds on its own; there is always a long value chain behind every successful operation. This panel, based on the two previous presentations, seeks to deliver an in-depth view into the intricacies of taking a project to the development phase and ultimately, to production.
12:15 ADDRESSING AND ENHANCING SECURITY AT MINE OPERATIONS
Security has always been a hot topic in mine operations, regardless of the level of development of the jurisdiction. Isolated areas, complex equipment, heavy machinery and precious cargo suggest that mining is a dangerous profession. But risk can be mitigated. This panel gathers industry experts with direct insight on how to manage and enhance security at various types of mine operations. From government officials to mine directors, panelist will analyze the key requisites for minimizing the risks and dangers regarding operational security and safety.
13:00 NETWORKING LUNCH
14:30 MEXICAN MINING AND THE INDIGENOUS CONSULTATION LAW
Indigenous and popular consultation by law is not alien to international mining. This practice is inherently implemented in leading jurisdictions like Canada and Australia. In Mexico, indigenous consultation is practiced but not regulated. Nor is it binding. The AMLO administration has endeavored to ensure mining activities are backed up by local communities before they are allowed to progress. While initially rejected in Congress, the bill on indigenous consultation for allocating mining concessions in Mexico is still alive.
14:45 INDIGENOUS CONSULTATION AND HOW IT ECHOES ACROSS THE MEXICAN MINING INDUSTRY
While indigenous consultation is a logical requirement for mining activity to have social license, implementing it as a binding law is not so easy. If approved by Congress, the new law would be a game changer for the legal status quo in mining, implying a significant transition. This panel addresses the implications that such a law would have on the entire mining apparatus. From government to operators, it will present multiple industry perspectives on the matter.
15:30 NETWORKING COFFEE BREAK
15:50 NATIONAL CHAMPIONS AND THE STORY BEHIND THEIR OPERATIONAL SUCCESS AND EFFICIENCY
Mexican mining has its Big Four, successful operators that have come to dominate the mining landscape over the years. Have they all followed the same strategies for operational and financial success or is there a key secret ingredient that has allowed them to thrive in the industry? This panel brings together the leaders behind these giants in an unparallel opportunity to learn their story directly from the authors of these successes.
16:45 DEVELOPING MINING’S MAIN ASSET: HUMAN CAPITAL
While innovation and technology are opening new avenues for the industry, mining has always been and will continue to be backed up by miners. Leaders across the sector openly share that the base of their company’s success is its people. But attracting the best talent and retaining it in such a competitive professional environment can be a difficult task. This presentation addresses an ever more relevant question for the industry: how to fully develop the potential of its human capital.
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In this changing environment, reliable and relevant information is crucial to take full advantage of both current and emerging opportunities within the country’s mining industry. By connecting key stakeholders across the Mexican and international public and private sectors, Mexico Mining Review is dedicated to accelerating the exchange of essential industry information that will drive the mining industry’s development. Published annually, Mexico Mining Review features the perspectives of the leading players in the industry, providing a comprehensive overview of the latest exploration and investment trends, technological breakthroughs, social and environmental achievements and operational challenges in the Mexican mining industry.
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