Americas America is experiencing a boom of foreign capital in mining sector

By: Sonia Osorio 18-06-2008 - 17:53 h. Miami, EE.UU. Miami, USA | America is experiencing a boom of foreign investment in mining by high raw material prices which in the case of Mexico, could mean resources of over 20,000 million dollars in six years, industry experts said today.

The prospects for the mining industry and investment opportunities were discussed today by government representatives, executives and investors in the Latin American Mining Congress 2008, organized by the company Terrapinn in Miami (USA).

Norberto Roque Diaz de Leon, coordinator of the Mining Ministry of Economy of Mexico, said that the boom sector combine several factors: high prices, the potential geological and economic stability of some countries. Disbursements for exploration of gold, base metals, diamonds and other metals reached 9,900 million dollars last year in the world and the region received 24 per cent of those resources, according to figures released recently Metals Economic Group. "In the case of Mexico board, in addition, the ecological wealth of the country, infrastructure and a stable legal framework, while competitive. This has led to substantially increase investment in Mexico and Latin America," said the official Mexican.

That country, which has 27 different metals and 45 non-metallic minerals, estimated that between 2007 and 2012 its mining sector will get more than 20,000 million dollars in investment. "This surge in the number of exploration projects, construction of mines, and plant operation. We currently have around 600 exploration projects funded by the Toronto Stock Exchange," said Diaz de Leon. Mexico ranks first in investment in mineral exploration in Latin America and the fifth in the world, according to the official. The presence of capital from the Toronto Stock Exchange in Mexican mining is, in his view, a sign of potential geological interest of this country, "but also demonstrates the confidence that inspires the global financial market as a destination for investment."

Colombia is another Latin American nation that is attracting foreign investors. In 2007 received 1,200 million dollars in exploration and only the annual flow is between 150 to 200 million dollars. The Colombian Minister of Mines and Energy, Hernan Martinez, said that the "rise of the prices of base metals and precious undoubtedly attracts a stream of investors everywhere." ""In Colombia we are receiving a flow of potential investors making big exploration and this is combined with other factors such as levels of security we have achieved, especially in remote areas" where the deposits, he said. He noted also that in the oil sector were invested some 3,500 million dollars in 2007 and estimated that this year will move from 5,000 million dollars. Martinez cited macroeconomic data they generate confidence among foreign capital, as economic growth above five percent, a low and stable inflation in single digits since 1999 and democratic security it deemed "critical".

The Deputy Minister of Mines of Ecuador, Jose Serrano, noted that "without a doubt, the high prices of metal ores determine that the activity was quoted more" in Latin America. An investment boom is also given in terms of certain needs other countries. For example, using copper as a raw material for other combinations of metals in what he has to do with megainfraestructuras. He argued that this boom should be in balance with a process of developing environmentally responsible and communities where mining projects are implemented. Serrano stressed political stability in Ecuador, a bill of Mining which is expected to be approved in August and projects among those who cited one with reserves of 22 million ounces of gold, 30 million ounces of silver and 26,500 million ounces copper.