{"id":3816,"date":"2021-05-12T16:19:47","date_gmt":"2021-05-12T22:19:47","guid":{"rendered":"http:\/\/accesstomexico.mx\/blog\/?p=3816"},"modified":"2021-05-13T16:22:25","modified_gmt":"2021-05-13T22:22:25","slug":"mexicos-biggest-mining-company-to-build-new-power-infrastructure-in-baja","status":"publish","type":"post","link":"https:\/\/accesstomexico.mx\/blog\/mexicos-biggest-mining-company-to-build-new-power-infrastructure-in-baja\/","title":{"rendered":"Mexico\u2019s biggest mining company to build new power infrastructure in Baja."},"content":{"rendered":"\n
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MEXICO NEWS DAILY<\/a><\/p>\n\n\n\n

Mexico\u2019s largest mining company will invest US $815 million to build major new transmission lines for the Baja California peninsula, according to the firm\u2019s vice chairman.<\/p>\n\n\n\n

In an interview with the news agency Reuters, Xavier Garc\u00eda de Quevedo of Grupo M\u00e9xico revealed new investments totaling $3.1 billion over six years for metals refining in Sonora and power infrastructure for the proposed El Arco copper mine in the municipality of Muleg\u00e9, Baja California Sur.<\/p>\n\n\n\n

The latter project is expected to bring cheaper electricity to the Baja peninsula, including the Los Cabos tourist area. Power costs in the region are higher than in many other parts of Mexico.<\/p>\n\n\n\n

Garc\u00eda de Quevedo said the energy plans would benefit the El Arco mine \u2014 slated to produce 190,000 tonnes of copper annually starting in 2027 \u2014 as well as domestic and commercial electricity customers in the southern part of the peninsula.<\/p>\n\n\n\n

Grupo M\u00e9xico\u2019s proposed power infrastructure includes a 500-kilometer transmission line running north to south in Baja California Sur.<\/p>\n\n\n\n

\u201cBaja California\u2019s huge potential can\u2019t be developed without electricity,\u201d Garc\u00eda de Quevedo said, citing electricity rates he claimed are about three times higher than the national average.<\/p>\n\n\n\n

The executive, a five-decade veteran of the company owned by Mexico\u2019s second-richest person, Germ\u00e1n Larrea, <\/strong>declined to say where the power to feed the new transmission line would originate.<\/p>\n\n\n\n

Reuters reported that Grupo M\u00e9xico\u2019s six-year investment blueprint also includes $2.3 billion to increase smelting capacity in Sonora, where the company has major mines. It said that Garc\u00eda de Quevedo outlined almost $9 billion in investments through 2027, including a previously-announced $2.8 billion for the El Arco mine. Other resources will go to additional infrastructure, two other Grupo M\u00e9xico mines and additional zinc refining capacity.<\/p>\n\n\n\n

Garc\u00eda de Quevedo played down suggestions that political factors could have an impact on the company\u2019s investment plans, saying said they have already been discussed with senior officials in the federal government, which has not been a wholehearted supporter of mining.<\/p>\n\n\n\n

\u201cThis is something that the government knows very well,\u201d the vice chairman told Reuters, adding that while permits are needed for the company\u2019s planned projects, no new mining concessions are required. \u201cWe all trust that we could have all the authorizations very soon.\u201d<\/p>\n\n\n\n

President L\u00f3pez Obrador and his government, now 2 1\/2 years into its six-year term, have been widely criticized by the mining industry for being too slow to issue permits and approvals, a pattern of tardiness attributed to budget cuts at the Environment Ministry. The government has also faced criticism for its policy of not issuing any new mining concessions, a position the president has trumpeted proudly.<\/p>\n\n\n\n

Before L\u00f3pez Obrador came to power, Larrea warned that as president, he could seek to implement policies that \u201crepresent a backward step of decades and a return to an economic model that has been thoroughly proven not to have worked in several countries.\u201d<\/p>\n\n\n\n

In addition to its lucrative mining interests, Grupo M\u00e9xico \u2014 the world\u2019s fifth-largest copper producer and Mexico\u2019s third-biggest company by market capitalization \u2013 operates a major rail freight business in Mexico and transports refined products by both rail and pipeline for Pemex, the state-owned oil company.<\/p>\n\n\n\n

It was also awarded a contract with Spanish conglomerate Acciona to build a section of the government\u2019s Maya Train railroad project, which will link towns and cities in Mexico\u2019s southeast.<\/p>\n\n\n\n

While Larrea and L\u00f3pez Obrador have been critical of each other in the past, Grupo M\u00e9xico is now willing to work closely with his administration, according to Garc\u00eda de Quevedo. \u201cWhat we want is to be an ally of the government,\u201d he said. <\/p>\n\n\n\n

Mexico News Daily Staff. (2021). Mexico\u2019s biggest mining company to build new power infrastructure in Baja. M\u00e9xico.\u00a0Mexico News Daily<\/em>. Recuperado de\u00a0<\/strong>https:\/\/mexiconewsdaily.com\/news\/new-power-infrastructure-in-baja\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

MEXICO NEWS DAILY Mexico\u2019s largest mining company will invest US $815 million to build major new transmission lines for the Baja California peninsula, according to the firm\u2019s vice chairman. In an interview with the news agency Reuters, Xavier Garc\u00eda de […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3816","post","type-post","status-publish","format-standard","hentry","category-uncategorized","clearfix"],"_links":{"self":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/comments?post=3816"}],"version-history":[{"count":1,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3816\/revisions"}],"predecessor-version":[{"id":3818,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/posts\/3816\/revisions\/3818"}],"wp:attachment":[{"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/media?parent=3816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/categories?post=3816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accesstomexico.mx\/blog\/wp-json\/wp\/v2\/tags?post=3816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}