Grupo Mexico to invest US$3.1 billion in Sonora

Grupo Mexico to invest US$3.1 billion in Sonora

SONORA – Grupo Mexico plans to invest US$3.1 billion for metal refining in the state of Sonora and electrical infrastructure for a key mine in the Baja California peninsula.

The six-year investment plan includes a US$2.3 billion expansion of existing smelting capacity in Sonora, the state where the company’s main mines are located. The plan also includes US$815 million for new power lines for the Baja California peninsula.

Grupo Mexico’s executive vice president, Xavier Garcia de Quevedo, also detailed nearly US$9 billion in investments through 2027, including US$2.8 billion previously announced for its El Arco copper mine, which would ensure Baja California’s energy investment.

The remainder will be distributed in additional infrastructure, two other mines and new zinc refining capacity.

On the other hand, energy plans in Baja California would benefit El Arco, as well as domestic and commercial energy users in a region that includes the resort town of Los Cabos

“The great potential that Baja California has cannot be developed without electricity,” said the executive.

The proposed power infrastructure includes a 500-kilometer-long transmission line running north-south along the southern half of the peninsula.

It is worth noting that Grupo Mexico, the third largest company in the country by market capitalization, has mining operations in the American continent, through its unit Southern Copper Corp.

In addition, it has a significant rail freight business in Mexico and a strong presence in the country’s oil sector, where it transports refined products for the state-owned oil company Pemex by rail and pipeline.

Source: El Economista