Mexico is a major producer of base metals, gold and is the world's leading producer of silver. Mexican silver production currently is almost 100 million ounces of the metal per year, which accounts for 17% of the world's annual supply. In addition the mining industry is responsible for nearly 7% of the country's domestic economy. Politically, Mexico is one of the most stable countries in Latin America, with favorable tax structures and a strong government commitment to natural resource development.

Why Mexico?

• Immense discovery potential
• A stable political climate
• A 500 year mining history
• Sound environmental policies
• Excellent infrastructure
• Firm government commitment to natural resources development

The Mining Industry:

Since the arrival of the Spaniards over 500 years ago, the country's vast mineral wealth has attracted considerable interest.

Mexico radically overhauled this nationalistic mining law structure in the early 1990's for the express purpose of attracting foreign mining investment. Shortly thereafter exploration expenditures in the country increased tenfold.

Mexico's mining industry can be split into three categories: large domestic producers, small domestic producers and foreign firms. There are four major domestic producers, Industrias Peñoles (precious and base metals and world's largest producer of refined silver), Grupo Industrial Minera Mexico (responsible for 90% of Mexico's copper production), Empresas Frisco and Luismin.

Mexico is considered to be a low cost jurisdiction for mining operations with average labour costs ranking far lower than most other countries. However, due to the lack of employment opportunities in other sectors, mine employees earn much higher wages than the average per capita income. As a result, mining jobs are sought after by a motivated and well-trained local work force and local communities are generally supportive to mine development.

In addition, environmental regulations are comparable to the rest of North America and there is only limited tolerance for obstructionism, ensuring that permitting for exploration and development is accelerated.

Despite these positive attributes, Mexico still remains under-explored. Numerous major discoveries have been made over the last 20 years by applying modern geological methods and there is every expectation that more will be made in the near future. In summary, it quickly becomes clear that Mexico is an excellent country to invest exploration and development capital.