36 Negocios

Photo archive

new gold

CElEbrAtEs MEXICAN boNANzA

MEXICos pArtNEr new Gold

new Gold is a canadian mininG company with operations in the us, australia, canada and chile. in mexico, it has hit a bonanza with the cerro san pedro mine in san luis potos.

exicos mining industry has experienced a boom during the current government administration, as crisis-weary investors take refuge in gold. Three years ago, the mining industry displaced tourism in terms of revenues, posting a 23% growth in foreign sales and raking in 22 billion usd in 2010, according to figures from the Bank of Mexico. That same year, it ranked third in terms of exports, just below the oil and automobile industries. The profitability of the metals industry has skyrocketed worldwide and New Gold of Canada, which operates the Cerro San Pedro mine, near to the mining town of Real de Catorce, just 20 kilometers from the state capital of San Luis Potos in Central Mexico, has had the foresight to join in on the situation. The price of gold, silver, copper, iron and metals in general have remained high in recent years, resulting in growth and prosperity for the mining industry. Lots of new companies have appeared and prospecting is on the rise in parts of the world with the right geological conditions. In that respect, Mexico has considerable presence, particularly its northern states, where investment has increased, says Cerro San Pedro General Manager, scar Flores. Our core business is gold, although we also produce silver and copper. To continue growing in Mexico, we are prospecting the same section of the mine in San Luis Potos. Studies have revealed deposits of several metals at a depth of 500 meters, which could be a future underground mine for us.

New Gold has mining interests in the US, Australia, Canada and Chile, but its Mexican mine is indubitably a source of solid economic growth, now and well into the future, given the possibility of discovering new deposits. Mexico generates a major return for New Gold, enabling us to continue doing business and developing new projects, says Flores, adding that although Mexico is not internationally known as a mining country, the reality is that it is. The activities of mining companies like New Gold have given rise to other industryrelated businesses, which often employ the same suppliers, geologists, contractors and other experts to the extent that these are produced by the countrys universities. As regards labor, the advantage is that the development of human resources is promoted practically from zero in Mexico, which implies the creation of jobs and investment in research and training. At the Cerro San Pedro mine in San Luis Potos, says Flores, 50% of our workforce is comprised of people who live in the 11 communities in the vicinity of the mine. In that regard, we are bringing about a transition from agriculture to mining.

thE JEwEl of thE hIGh plAtEAu

The mines in the Mexican states of Zacatecas and San Luis Potos produced a combined 235,000 ounces of gold and 20 million ounces of silver between 1929 and 1949, as well as substantial amounts of zinc, lead and copper. Prospecting and extraction techniques have evolved dramatically since then, with

the result that mining today is a much more efficient and profitable business. Cerro San Pedro is an open pit mine where a lixiviation process is used to separate the silver and gold ore from the rock. The mine has an estimated lifespan of 10 years and probable gold reserves of 1.4 million ounces, rising to 52 million ounces in the case of silver. New Gold acquired Cerro San Pedro on June 30, 2008, via a business partnership with Metallica Resources, although the mine had been in operation since April 2007. The next year, in 2008, the Mexican Mining Chamber (CAMIMEX) awarded Cerro San Pedro a Silver Helmet in the category of the safest open pit mining operation with less than 500 employees. The award also speaks to New Golds environmental protection efforts. In 2008, the company reforested 52 hectares in the community of Monte Caldera, surpassing its annual reforestation target of 44 hectares. It has also set up a nursery for over 74,000 native plants that will be used in reforestation projects currently underway. To date, New Gold has reforested over 400 hectares in the environs of the Cerro San Pedro mine. In terms of social responsibility, the company makes a concerted effort to get involved. Ten local communities receive medical and dental services in conjunction with the Odontology Faculty at the University of San Luis Potos (UANLP), while all the communities where New Gold operates are supplied with computers, educational software and Internet access. n
www.newgold.com