March 31, 2007
Mexico City
Prepared for:
Ontario Ministry of Economic Development and Trade
By: GAES Consultancy, SA de CV



Mexico is an economic leader in Latin America and a member of 12 Free Trade Agreements, and is one of the most important trading economies in the world. The main region of economic trade and Foreign Direct Investment (FDI) in Mexico lies in Mexico City. The Federal District is Mexico's largest and most important commercial market which generates 22% of the total GNP and receives a total of 41.7% of Mexico's FDI.

There are many benefits to doing business with Mexico, including the National Mining Development Plan, the North America Free Trade Agreement, specialized sector concessions and promotion programs, Mexican mining legislation, and a proven interest in Canadian goods.

Mexico is renowned for being the single largest producer of silver (17% of world production), celestite (38%) and bismuth (29%)ⁱ, but is also one of the world's largest producers of numerous minerals and base metals. Mexico remains significantly unexplored and recent geological surveys suggest that two thirds of the country possesses mineral deposits at least as significant as those of the currently operating mines. In addition, new exploration models have revived exploration activity in districts long considered defined and/or exhausted.

Currently, the mining industry is in the middle of a price boom globally, with gold and silver prices at near record highs. The major industry players in Mexico are voicing confidence that this boom will continue for at least two more years, and are planning significant expansion projects on this basis.

In 2007, an estimated $5.7 trillion will be invested in mining exploration globally, with 20% of that focused on Latin America. Between 2005 and 2006 in Mexico, there were twelve projects with a combined investment total of more than $1.3 million. The investments for the metallurgical mining sector at the closing of 2005 were $912.9 million - an increase of 56% from 2004. The director of the Mexican Chamber for Mining (Camimex), Sergia Almazan, recently stated that, if the prices of metals continue high in the upcoming year, Mexico can expect to have exploration investments of over a billion dollars in 2007.

In 2006, Mexico imported a total of US$7.4 billion from Canada, a market share of 2.88% and an increase 19.66% over 2005. The top three imported products, as in years previous, were vehicles (excluding railway), machinery and electrical machinery.

There are 209 foreign mining companies currently exploring in Mexico, of which 75% are Canadian. 24 of the companies are from Ontario. In addition, there are 105 registered Mexican mining companies producing in the country.

There are several ways in which to distribute mining products in Mexico, including direct sales, sales representatives, importers and distributors. The major players in the Mexican mining industry are Industriales Peñoles, Grupo Mexico, Empresas Frisco and Luismin/Goldcorp. There are also numerous major sector promotional opportunities, including upcoming trade shows and sector publications, as well as a large number of industrial chambers and government bodies directly related to the industry.



EXECUTIVE SUMMARY

1. BACKGROUND
   • Mexico General Information
   • Mexico Fact Sheet
   • Mexico City Statistics
2. WHY MEXICO?
   • National Mining Development Plan
   • The North America Free Trade Agreement (NAFTA)
   • Concessions
   • The Maquiladora Program
   • Sectoral Promotion Programs
   • Proven Interest in Canadian Goods
   • Mining Legislation
   • Environmental Pressures
   • Mining Safety in Mexico
3. MARKET OVERVIEW: MINING
   • International Economic Overview
   • Behaviour of International Markets
   • Introduction to the Mining Industry in Mexico
   • Main Mining Producing States in Mexico
   • Major Areas of Production
     • Silver
     • Lead and Zinc
     • Copper and Molybdenum
     • Gold
     • Oil
     • Coal
4. CANADA-MEXICO TRADE OVERVIEW
   • Canada-Mexico Investment
   • Canada-Mexico Trade by Province
   • Trade between NAFTA Partners
5. THE MEXICAN IMPORT MARKET
   • Imports from Canada to Mexico (Machinery)
6. SPECIFIC MINING OPPORTUNITIES IN MEXICO
   • Exploration
   • General Call for Proposals
   • Investment
   • Joint Venture/Partnership
7. COMPETITION
   • Ontario Mining Investment in Mexico
   • Exploration Mining Projects by Ontario Companies in Mexico 2006
   • Local Manufacturers
   • General Description of Distribution Channel
   • Direct Sales
   • Sales Representatives and Agents
   • Distributors
   • Importers
8. KEY PLAYERS IN THE MINING INDUSTRY
   • Industrias Peñoles
   • Grupo Industrial Minera México
   • Empresas Frisco
   • Luismin, SA de CV/Goldcorp Inc.
9. SELECTED DISTRIBUTORS IN CENTRAL MEXICO
10. MAJOR SECTOR PROMOTIONAL OPPORTUNITIES
    • 2007 Trade Shows
11. SELECTED SPECIALIZED CONTACTS IN KEY SECTORS
    • Mexican Government
    • Mexican chambers and associations
12. REFERENCE
13. FOOTNOTES

Mexico has a stable free market economy that recently entered the trillion dollar classⁱⁱ, due in part to strong Central Bank policies maintaining inflation at historical lows and maintenance of international reserve levelsⁱⁱⁱ.

Over the past few years, Mexico has been able to position itself as the eighth most important trading economy in the world. In Latin America, Mexico is the single most influential trading economy accounting^iv for 44% of total exports and 49% of total imports for the region. Since the economic liberalization policy was put in place in 1994, Mexico has signed 12 Free Trade Agreements which have helped to drive its trade activity into a higher level of global competitiveness and to create a "pro-initiative" economy.

2006 was a banner year for Mexico, with a more than 4.8% growth in the economy - the fastest economic growth for the country in six years - due mainly to higher oil and tax revenue. Wholesale and retail figures continued to rise steadily, and the consumer confidence index gained an additional 0.5%^v. The booming economy last year generated more than 950,000 new permanent jobs, with the average unemployment rate remaining unchanged.

The Mexican Stock Market (Bolsa Mexicana de Valores, BMV) had another outstanding year, with the exchange's Index of Prices and Quotations closing out the year at an all-time high of 26,448.32; the year's gain was 8,845.61 points, 48.56% above the January 1, 2006 mark. As of January 2007, the nation's international reserves were close to $80 billion^vi.

Foreign Direct Investment (FDI) into Mexico rose 6.4% in 2006 to $18.94 billion^vii. Inflation rose slightly to 4.05% after 2005's notable low of 3.3%, but remains well within range of 2006 projected estimates.

There was a slowdown in the Mexican economy in the last three months of 2006, attributed primarily to a slowdown in exports to the country's principal customer, the United States^viii, and 2007 key target figures. However, economic analysts point to the dramatic 5.9% increase in the nation's construction sector, increased consumer spending and burgeoning export relationships with Canada, Argentina and Peru as evidence of continued future economic stability. Projections for 2007 include an annual increase of 3.6% in GDP^ix.

In fact, the decline in Mexico's economic reliance on the United States is evidence of significant trade opportunities between Mexico and other countries. According to a recent 2007 report by KPMG and the Economist Intelligence Unit (published in Poder y Negocios, January 16, 2007), there exists the perception that countries like Mexico offer a greater return on investments than markets like China and India. With the new federal government of Felipe Calderon pledging a significant investment in the country's infrastructure^x, Mexico has positioned itself as a strong manufacturing platform with a high return on automotive, "white line" and construction materials.



Mexico is the 11th largest country in the world according to population, with 107.5 million residents and an annual population growth of 1.16% as of June 2006^xi. Slightly less than three times the geographic size of Texas, the land spans from high tropical mountains to desert.

General Description^xii

Name: United Mexican States
Type: Representative Federal Democratic Republic
Capital City: Mexico City
Official Language: Spanish
Weight & measures: Metric
Time: Most of Mexico is on Central Standard Time (1 hour behind Ontario)
Currency: C$1 = 9.47603 MX Pesos (February 22, 2007)
States: 31 states and one Federal District

Demographic & Labour Indicators as of March 2007
Estimated total population: 107.5 million
Estimated average population growth rate 2000-2005: 1.16% annually
Country's average population density (people per square kilometre): 54
Labour force: 38.09 million
Unemployment rate: 3.2%
Average life expectancy male / female: 72.63 / 78.33
Literacy: 92.2%

Economic Indicators

Annual growth (GDP real growth rate, 2006): 4.5%
GDP (purchasing power parity, 2006): US$1.134 trillion
GDP (per capita, 2006): US$10,600
Inflation (consumer prices, 2006): 3.4%
Total Imports (2006): US$253.1 billion
Total Exports (2006): US$248.8 billion
Foreign Direct Investment (2005): US$18.84 billion

Political Data

Executive Branch: The President of the Republic is elected by direct suffrage every six years. Current President Felipe Calderón Hinojosa was elected in July 2006. Legislative Branch: Chamber of Deputies (500 members) & Chamber of Senators (128) Judicial Branch: Supreme Court of Justice (11 magistrates)
Main Political Parties:

• PRI: Partido Revolucionario Institucional
• PAN: Partido Acción Nacional
• PRD: Partido Revolución Democrática
• PVEM: Partido Verde Ecologista

Mexico City, the Federal District or Distrito Federal, is the country's political, economical, financial, commercial, industrial and cultural centre. Although it is smaller in area than any other state in the country, it is by far Mexico's largest and most important commercial market. Nearly 8.5% of the country's population lives in the metropolitan area, and it ranks as the third largest city in the world (preceded by Tokyo, Japan and Sao Paulo, Brasil)^xiii.

Almost 51% of the country's total domestic migration either arrives into or leaves from the Metropolitan Zone of Mexico City, which reflects its influence nationwide. The metropolitan zones of Monterrey, Guadalajara, Puebla and the State of Mexico follow the Federal District in importance.

Mexico City generates a significant 22% (MXP $1.67 million) of the total GNP and receives an impressive 41.7% of Mexico's total foreign direct investment^xiv. By September 2005, 14,002 foreign capital companies were established in the Federal District. Table 1.1 shows the main federal entities that receive FDI capital in Mexico, and confirms importance of the Federal District. In addition, there are 36,633 manufacturing companies established in the country. These represent 6.5% of the total companies located in Mexico^xv.

Table 1.1: Major Mexican States for Foreign Investment

Foreign Direct Investment: Federal Entity 2000-2004; USD Million
Year	Total	Baja California	Mexico City	Guanajuato	Jalisco	State of Mexico	Nuevo León
2000	17,174.6	972.6	8,261.4	73.0	1,162.5	467.7	2,389.7
2001	27,735.1	854.3	20,448.4	229.7	427.1	781.8	1,836.5
2002	17,121.4	926.8	10,991.5	133.4	216.5	698.9	1,492.8
2003	12,750.6	715.3	7,569.7	236.7	241.6	634.9	1,161.5
2004	17,909.7	944.3	12,197.2	24.9	390.9	724.9	886.8

Originally released in 2002 and currently being updated for release later in 2007, the National Mining Development Plan for Mexico focuses on strategic measures and guidelines designed to encourage and attract national and foreign explorers and producers to invest and conduct geological exploration work in areas where rich geological mineral deposits exist.

There are four main challenges to having a competitive mining sector in Mexico. These challenges include:

• Technology
• Productivity
• Justice
• Balanced Regional Development

The four objectives to face these challenges are:

• Create the adequate atmosphere that will enable incoming investment, both national and foreign.
• Diminish the risk and the cost of any exploration activities as well as the discovery of new mineral deposits.
• Improve the production capability of small and medium companies, as well as the social mining associations, in order to generate new jobs, infrastructure and income.
• Increase our mineral commodity market, its added value and the intregration of the industry with strategic and precursory sectors.

The plan establishes the following strategies to aid in reaching the proposed objectives:

• Improve the legal and normative system.
• Achieve an efficient and transparent administration.
• Promote national and foreign investment.
• Provide basic geological information for any exploration activities.
• Grant technical and financial support to viable and profitable projects.
• Support social mining associations.
• Fortify the productive chain.

The mining sector in Mexico therefore needs and is actively seeking strong capital investments from both national and foreign investors in order to remain as an international competitor.



In January 1994, Mexico joined Canada and the United States in the North American Free Trade Agreement, to phase out all tariffs over a 15-year period. Since its implementation in 1994, tariffs have been eliminated on 84.5% of all non-oil and nonagricultural Mexican exports to the United States and 79% of exports to Canada. The current duty free temporary import programs were eliminated as of January 1, 2001 for trade between Mexico, United States and Canada.

As of June 2007, less than 1% of products are subject to tariffs and, by 2008, there will be no tariffs on products traded by the three countries.

Mexico's tariffs are based on the Harmonised Tariff System (HTS). Most duties are ad valorem, assessed on the freight on board (FOB) or cost, insurance and freight (CIF) value or at specific rates - whichever is greater. Mexico's free trade agreement with the USA and Canada means that Canadian mining equipment suppliers have a tariff advantage over equivalent mining equipment imports from countries without free trade agreements, who typically face a tariff of between 10 and 20 per cent^xvi.



The Mexican Government has introduced a range of concessions to encourage the mining sector:

• Mexico's 15 per cent value added tax has been eliminated in all stages of gold commercialisation
• Mining companies are exempt from the country's asset tax for the first five years
• Mining companies are eligible for credits on the Special Tax on Production and Services when acquiring diesel fuel for use in vehicles

Additional incentives for the mining sector have included tax regulations adjusted to international standards, access to capital sources through lines of credit, and more efficient processing of exploration and development claims^xvii.



As of January 1, 2001, Mexico started applying new rules to the temporary imports of goods and services used by maquiladora plants in Mexico, as provided in the Decree that Establishes amendments for the Promotion and Operation of the Export Maquiladora Program (December 31, 2000).

Reforms to the maquiladora program respond to Mexico´s commitments under Article 303 of the NAFTA, which regulates duty drawback programs that refund or waive customs duties on materials used for the manufacture of goods subsequently exported to a NAFTA party.

Under NAFTA, Mexico agreed to allow duty free temporary imports of inputs only if the input complies with the rule of origin when it is imported from another NAFTA country or if the final product is exported to a non-NAFTA country.



Sectoral Promotion Programs are generally aimed at offering corporations competitive tariff conditions to acquire inputs and machinery, to prevent affecting their export operations.

Sectoral Promotion Programs comprise four basic elements:

• Users of each program;
• End products to be produced by them;
• Inputs and machinery that may be imported by users of each; and
• Customs duties from 0% to 5% for final importation of inputs and machinery listed in each program. Such inputs and machinery do not include products used in construction and infrastructure for water, light and telephone utilities as well as for large refining and energy supply work projects.

Sectoral Promotion Programs yield significant benefits to user industries, such as:

• Grant producers certainty on tariff levels to be paid by them on their imports as of year 2001.
• Maintain competitiveness of manufacturing companies in Mexico that produce for exports and domestic markets.
• Promote the development of domestic and regional suppliers.
• In order to comply with Article 303 of the NAFTA, Mexico created 20 sectoral promotion programs for the following industries: electrical; electronics; furniture; toys; footwear; metals and minerals; machinery and equipment; photography; agricultural machinery; chemicals; rubber and plastics; steel; pharmaceuticals and medical equipment; transportation equipment (cars not included); paper and cardboard; wood; leather and leather products; automobiles and auto parts, and textiles and apparel.^xviii

According to Canadian Ministry of Finance, as of November 2006, Mexico became Canada's fourth largest export market - after the United States, the United Kingdom and Japan - with a total value of $6.7 billion over first eleven months of 2006. This number represents a growth of 553% and 21% over the January/November export values for 1993 (pre-NAFTA) and 2005 respectively^xix.

Strengthened by the positive national presence of such successful Canadian companies as Bombadier, these numbers are evidence of the strength of Canada's reputation within Mexico. During past trade missions organized by the Ontario Ministry of Economic Development and Trade, involved Mexican companies commented on the perceived highly quality of Canadian service and products.



Mexico's mining industry is represented by the Consejo de Recursos Minerales (Mineral Resources Council). The current Mining Law was enacted by Mexico's Congress in 1992 and published in the Diario Oficial de la Federacion (Official Federal Gazette) of June 26 of that year. Some of its articles were amended by congressional decree published in the Diario Oficial de la Federacion of December 24, 1996. Its current regulations, which superseded those of 1993, were published in the Diario Oficial de la Federacion on February 15, 1999.

The Mexican government approved a restructuring of the Mining Law in 2005 to deregulate the sector and empower the Mexican Geological Service. The last major change to this legislation took place in 1992. There is a stable legal framework in the mining industry that facilitates business.

Under the Mexican constitution, minerals are part of the national patrimony. The exploration, exploitation and beneficiation of the minerals will have preference over any other use for the land. Except for hydrocarbons, radioactive materials and salt, the law permits up to 100 percent private ownership in equity exploration, development and production of mineral substances.

Exploration concessions are granted for six years and are not renewable. There are no limits for the mining concession surfaces. Production concessions are awarded for 50 years and are renewable for a similar period^xx.

Mexican mining law offers the following advantages:

• It allows direct foreign investment with up to 100% ownership of the capital stock.
• It allows private sector participation in minerals previously considered as exclusive for the government (sulphur, phosphorus, potassium, iron ore and coal).
• The general guidelines issued by the concession granting bidding of nonincorporated assignations are established. The concept of economic counterproposal is added.
• Timing and authority's answers to the canceling of concessions, or substitutions obtained in a bidding, are established, and the same applies to cases when the bidding was declared deserted^xxi.

The international mining sector has been under increased pressure in recent years to address issues surrounding sustainable development and the environment.

On March 29th, 2007, Canadian mining representatives and advocacy groups, including Ottawa-based MiningWatch Canada, announced an accord that would create the first independent mining ombudsman as well as sketch out environmental and social standards for projects in the developing world. The report calls upon governments to withdraw diplomatic support and tax breaks to any companies failing to uphold these standards.^xxii As 75% of the foreign companies currently invested in mining in Mexico are Canadian, this new accord promises significant environmental reforms.

Under Mexican mining law, concessionaires must comply with federal environmental regulations, which generally require that mining activities be subject to an environmental impact statement authorisation. In order to avoid the need to file an environmental impact statement for all exploration activities, Official Mexican Norm NOM-120-ECOL-1997 on Specifications of Environmental Protection for Direct Exploration Mining Activities was published in the Diario Oficial de la Federacion of November 19, 1998, setting forth certain thresholds that if not exceeded make the filing of an impact statement unnecessary. In the absence of extraordinary circumstances, an environmental impact statement authorisation can usually be obtained in from six to 12 months from its being filed.



Mexico is still battling the effects of historical incompetence with regards to mining safety - a reputation that returned to the spotlight after an explosion at major domestic producer Grupo Mexico's Pasta de Conchos mine on February 19th, 2006, which claimed the lives of 65 miners. This reputation is not altogether deserved today, and further research and due diligence with regards to the issue of mining safety should be undertaken by Canadian companies interested in doing business in Mexico.

The International Labour Organisation (ILO) considers mining, especially coal mining, to be one of the most dangerous types of work. Each year over 15,000 miners are killed in accidents worldwide^xxiii. Many of these deaths, in Mexico and throughout the world, are the result of negligence on the part of the respective mining companies and lax inspection processes.

In addition to the established mining companies, Mexico has hundreds of "pocitos" or "little holes": tiny mining outposts that can produce up to 30 tons of coal per day with no more than 20 workers and a history of bypassing federal safety standards. These tiny mines are often no more than holes in the ground, with no ventilation, no communications sytems and no standards for removing highly combustible coal dust. Pocito coal continues to be purchased by the Mexico government for two major power plants near the Texas border^xxiv.

However, while Mexico does continue to be home to numerous mines with insufficient safety procedures and infrastructure in place, it is important to note that companies like Industrias Peñoles, the largest silver producer in the world, operates world-class mines in complete cooperation with safety standards.

In addition, as a direct response to the February 2006 explosion, the current federal government under President Felipe Calderón, along with the Energy Commission of the Chamber of Representatives of the Mexican Congress of the Union, are in the process of implementing a number of strict safety reforms for the mining industry in Mexico. For more information on these reforms, please see "the Decree that Reforms the Regulations of Law that Regulates Constitutional Article 27 on Matters of Petroleum, as well as the Mining Law."





Global output rose by 4.4% in 2005, led by China (9.3%), India (7.6%), and Russia (5.9%). The 14 other successor nations of the USSR and the other old Warsaw Pact nations again experienced widely divergent growth rates; the three Baltic nations continued as strong performers, in the 7% range of growth. Growth results posted by the major industrial countries varied from no gain for Italy to a strong gain by the United States (3.4%). The developing nations also varied in their growth results, with many countries facing population increases that erode gains in output.

The opening of war in March 2003 between a US-led coalition and Iraq added new uncertainties to global economic prospects. The complex political difficulties and the high economic cost of the conflict in Iraq continue to be major global problems going into 2007.

According the CIA World Factbook, the GDP of the world grew by an estimated 5.1% in 2006 to Gross World Product of US$65 trillion. Much of this can be attributed to increased military spending and appropriation of the investment opportunities in Iraq on the part of the United States^xxv.



2001 to 2006 are being referred to as a "bubble period" for the precious metals and oil markets: values have risen so high and so quickly during this period that many speculators are fearing the inevitable "popping of the bubble". From September 2005 onwards, the price of silver has risen fairly steeply, being initially around $7 per troy ounce but reaching $14 per ounce for first time by late April of 2006. The monthly average price of silver was $12.61 per oz. during April 2006, and the spot price was around $14.40 per oz. on May 10, 2006^xxvi. Gold has jumped in price from US$272.15 in 2000 to $513.00 in 2005 and continues to increase today^xxvii.

Representatives from several Mexican mining companies, such as world's largest silver producer Industriales Peñoles, however, are confident that these numbers will hold for several years yet and are announcing extensive expansion plans over the next five years based on steady world market prices. (For more information on opportunities and specific expansion plans, please see Sections 6 and 8 of this report.)



Mexico is renowned for being the single largest producer of silver (17% of world production), celestite (38%) and bismuth (29%)^xxviii, but is also one of the world's largest producers of such minerals and base metals as: gold, soda ash, fluoride, zinc, lead, copper, salt, arsenic, barite, molybdenum, cadmium, manganese, gypsum, wallostonite, feldspar and sulfur. Deposits are high-grade and amendable to low-cost underground and surface mining^xxix.

Mexico remains significantly unexplored and recent geological surveys suggest that two thirds of the country possesses mineral deposits at least as significant as those of the currently operating mines. In addition, new exploration models have revived exploration activity in districts long considered defined and/or exhausted^xxx. Entirely new ore zones have been discovered in historic districts such as Guanajuato (1968), Fresnillo (1976), Bolaños (1985), Dolores (1996), San Martin-Sabinas (1996), Concepcion del Oro (1996, 2001), and Tayoltita (1992, 1997). Entirely new districts have been found such as La Cienega (1989), San Sebastian-Saladillo (1996), and Platosa (2001) in Durango. Districts such as San Martin, Santa Barbara, Charcas and Fresnillo have been proven to be exploitable at rates of up to 7,500 tons per day, an increase of over 700% from their mid-1970s production levels.

In 2007, an estimated $5.7 trillion will be invested in mining exploration globally, with 20% of that focused on Latin America. Between 2005 and 2006 in Mexico, there were twelve projects with a combined investment total of more than $1.3 million. The investments for the metallurgical mining sector at the closing of 2005 were $912.9 million - an increase of 56% from 2004. The director of the Mexican Chamber for Mining (Camimex), Sergia Almazan, recently stated that, if the prices of metals continue high in the upcoming year, Mexico can expect to have exploration investments of over a billion dollars in 2007.

In 2005 the value of Mexican mining production rose to $4.22 billion, representing 1.6% of GDP. 84% of production was generated by large mining companies and 13% by mid-sized companies. According to the Mexican Social Security Institution, the mining industry employed 266,000 people in 2005^xxxi. Mining has a 500 year mining history and the industry represent a significant part of the national and local economies.




(From Right to Left, Top to Bottom:)

Sonora
Chihuahua
Coahuila
Durango
Zacatecas
San Luis Potosí



Silver

The Mexican Silver Belt, La Faja de Plata, is the world's most productive silver district with well over 10 billion ounces of silver production and between 63 and 75 million ounces of accompanying gold production. Many of the major mines in the belt, including Pachuca, Guanajuato, Zacatecas, Fresnillo, Tayoltita, Santa Eulalia, Parral- Santa Barbara-San Francisco del Oro, and Charcas have been in nearly continuous production since the 16th century and the first four of this list have produced over a billion ounces of silver each. The belt currently produces about 100 million ounces a year from a combination of epithermal vein and carbonate replacement deposits (CRDs) with production grades ranging from 5 to 30 oz per ton silver (plus substantial copper, zinc and lead co-production) at mining rates of a few hundred to 7500 tons per day.^xxxii

Table 3.1 Top Global Silver Producers

Top Global Silver Producers, in millions of ounces
Rank	Company	Country	2004	2005	2006 (est.)
1	BHP Billiton	Australia	49.7	53.8	38.4
2	Indust. Peñoles	Mexico	44.5	47.4	44.9
3	KGHM Polska	Poland	43.2	40.0	40.2
4	Grupo Mexico	Mexico	19.4	18.5	15.4
5	Kazakhmys	Kazakhstan	17.7	20.5	21.4
6	Barrick Gold	Canada	17.3	12.5	10.0

Lead and Zinc ^xxxiii

As of 2006, Mexico is the fifth largest producer of lead and zinc in the world. In 2005, over 418,000 tons of zinc and over 156,000 tons of lead were produced in this country.

Chihuaha and Zacatecas produce the most lead and zinc, hosting mines like Santa Barbara and San Francisco del Oro. The largest individual producers in Mexico are the Charcas mine in San Luis Potosi and the Franciso I. Madera mine in the state of Zacatecas. The Bismark underground mine is a major producer in the state of Chihuahua. Industrias Peñoles and Grupo Mexico are major players in this sector as well.

Copper and Molybdenum

In 2004, Mexico was ranked as the world's 11th largest producer of copper. In 2005, copper production was reported at 368,000 tons, marking a 4.6% increase from the previous year.

The majority of copper mined in the country comes from the Mexican copper belt, located in the western part of the country stretching from the northern state of Baja California Norte through Sonora, Sinaloa and western Chihuaha toward Chiapas.

The highest producing copper operations, the Cananea and La Caridad mines, are located in the state of Sonora. Other major mines include Sabinas and Zan Martin (Zacatecas), Santa Barbara and San Francisco del Oro (Chihuahua) and Charcas (San Luis Potosi). Peñoles began operation of the Milpillas underground copper mine in 2006.

Gold

The majority of gold production comes from mines where gold is obtained as a coproduct (silver and copper-gold mines) and by-product (polymetallic deposits). Sonora, Durango and Chihuahua produce the majority. The country's largest gold mine is La Herrradura, located in the Gulf of Cortez, which produced 5.7 tons of gold in 2005, followed by La Cienega, located in Durango.

In 2005, Mexico produced 31.5 tons of gold, representing a 28.8% increase over the previous year. Due to the completion and commencement of commercial production of several projects in 2006, final numbers for that year are expected to be see an significant increase.

Among the companies that play a significant role in gold production are Industrias Peñoles, Luismin and Dowa Mining.

Oil

The Mexican constitution provides that all of the hydrocarbon resources are owned by the nation. The country is a major non-OPEC producer; state-owned company PEMEX ranks 5th among the world's largest oil companies, producing an average of 3.78 million barrels per day in 2005. The oil sector generates over 10% of the country's export earnings and one-third of government revenues.

Most of the production comes from the Gulf of Campeche, located off the south-eastern coast of the country.

Coal

Mexico's recoverable coal reserves stand at 1.3 billion short tons, with the majority of the resources located in the state of Coahuila. The country's coal production covers 50% of its needs, with the balance being imported.





Canada's foreign direct investment in Mexico from 1994 to September 2006 reached US$5.7 billion, placing Canada as the fifth largest investor in Mexico. Mexico City is undoubtedly the preferred investment destination for Canadian companies. In Mexico there are 1,727 Canadian companies, of which more than 500 are established in Mexico City. Other important locations for Canadian companies are: Baja California Sur, Quintana Roo, Jalisco, Sonora, Nuevo León, Estado de México, Baja California Norte, Chihuahua, and Yucatán.



Table 4.1: Canada-Mexico Trade by Province

Canada-Mexico Trade by province, January-November 2006
Province	Ontario	Quebec	Alberta
Population 2005 (Estimate)	38.9%	23.5%	10.1%
Total Trade by province (share %)	71.6%	11.0%	6.7%
Export to Mexico	49.7%	17.4%	14.3%
Import from Mexico	77.6%	9.3%	4.6%
Total Trade by province (thousands of $US)	$ 11,725,237.3	$ 1,801,657.5	$ 1,091,542.1
Export	$ 1,738,578.4	$ 607,433.0	$ 502,247.9
Import	$ 9,986,658.9	$ 1,194,224.5	$ 589,294.1

Since the introduction of the NAFTA, trilateral trade between the three partners from 1993 to 2006 (Jan- Nov) has grown more than 194% and trade between Mexico and Canada has increased 2.5%. As a result of NAFTA, Mexican imports from Canada have increased significantly: more than 348% in the last 10 years.

Table 4.2: NAFTA Trilateral Trade

NAFTA Trilateral Trade (Jan- Nov 93-06)
	1993	2006
Total Trilateral Trade (US Million)	$213,156	$634,156
Canada - US Trade (share %)	69.2 %	58.6 %
Mexico - US	29.4%	38.9 %
Mexico - Canada	1.4%	2.5 %
NAFTA Trilateral Trade Growth Jan-Nov 93/06	194 %

Mexico's top two manufacturing imports from the world were machinery and electrical machinery, and in 2006 the total amount imported was US $96.3 billion. Over the last several years, Mexico has been importing more industrial machinery from the world, including mining machinery and equipment such as:

• Coal or rock cutters, self-propelled and not self-propelled
• Construction and mining equipment
• Pneumatic hand tool parts
• Pile-drivers and pile-extractors
• Boring or sinking machinery
• Tamping or compacting machinery
• Scrapers
• Chain and part saws
• Drills, saws, hand-held, with self-contained electric motor
• Tools for working in the hand, pneumatic rotary type, hydraulics or whit selfcontained electric motor
• Drilling equipment
• Rotary and/or percussion drillers
• Mechanically operated rotating drilling equipment
• Trench diggers, hydraulic scoop retro-excavators
• Excavators, hydraulic front loaders
• Rotation and/or percussion drills

As shown in the Table 35.1, in 2006 Mexico imported a total of US $39.8 billion in machinery and US$0.66 million for machinery to extract or perforate minerals and pneumatic, hydraulic and motor machinery. There are several export opportunities for Canadian producers of mining machinery, including machinery and equipment to extract or to perforate land, mineral and for pneumatics, hydraulic and motor machinery.

Table 5.1: Mexican Imports for Selected Products from the World 2004-06

Mexican Imports for machinery to extract or perforate minerals and pneumatic, hydraulic and motor machinery (World) (US $billion)
HS Codes/ Products	2004	2005	2006
84 Machinery	33.73	35.93	39.88
8430 Machinery to extract or perforate land and minerals	0.11	0.16	0.24
8467 Pneumatic, hydraulic and motor machinery	0.31	0.37	0.42

Origin of Imports (Machinery)
In 2006, the US was the main supplier for Mexican imports of pneumatic, hydraulic and motor machinery, with a participation of 52.9%. The US was followed by China, as the second most important exporter of this type of machinery to the Mexican market, sharing 17.9% of the total import market.

Table 5.1: Main Provider Countries for pneumatic, hydraulic and motor machinery (8467 - world)

Main Provider Countries for pneumatic, hydraulic and motor machinery (8467 - world)
Country	Percentage
Brazil	5.6%
China	17.9%
Germany	2.8%
Ireland	0.9%
Japan	5.7%
Sweden	3.7%
Taiwan	5.7%
US	52.9%
Others	5.0%

Table 5.2: Main Provider Countries for machinery to extract or perforate minerals (8430 - world)

Main Provider Countries for machinery to extract or perforate (world)
Country	Percentage
Austria	1.8%
Canada	4.1%
Cuba	2.2%
France	4.3%
Germany	4.0%
Italy	4.2%
Sweden	6.4%
UK	2.0%
US	63.7%

Mexico's main import supplier of machinery to extract or perforate minerals was again the US, with a participation of 63.7% of the total Mexican import market. In this case, Canada has a participation of 4.1% and is the fifth importer in importance, preceded by Sweden, France and Italy.



Amongst the principal mining products that Mexico acquires from Canada are: boring or sinking machinery, drilling equipment, rotary and/or percussion drillers, mechanically operated rotating drilling equipment, drills for rock, drills and saws.

Table 5.2: Mexican Imports for Selected Products from the Canada 2004-06

Mexican Imports for devices to extract or perforate minerals and pneumatic, hydraulic and motor Machinery (Canada) (US $billion)
HS Codes/ Products	2004	2005	2006
84 Machinery	0.65	0.75	0.87
8430 Machinery to extract or to perforate land and minerals	0.06	0.07	0.10
8467 Pneumatic, hydraulic and motor machinery	0.02	0.02	0.02

As shown in Table 3.6, Mexico imported US $871 million of machinery from Canada and US$12 million for machinery to extract or perforate minerals and pneumatic, hydraulic and motor machinery. Mexico has been increasingly importing more machinery from Canada over the past three years.



The following are companies actively seeking foreign investment, suppliers and/or participation for projects currently in development in Mexico. The opportunities have been placed in the single most appropriate category but are not limited to that category.

Cabullona
Concession:	Exploitation
Owner:	Alejandro Angel Agustin Loera and Chavez Manzo
Company:	N/A
State:	Sonora
Municipality:	Agua Prieta
Product:	Copper
Opportunity:	The owners of the Cabullona property are looking for a junior mining company to perform a detailed exploration program in order to assess its potential.
Info Available:	Localization and Acces, Geology Information, Mineralization, Developments, Photos and Maps
Cerro Minitas
Concession:	Exploration and Exploitation
Owner:	Sr. Jaime Muguiro Peña
Company:	N/A
State:	Durango
Municipality:	Guadalupe Victoria
Product:	Gold and silver
Opportunity:	The owner of property is looking for junior mining company to perform a detailed exploration program in order to assess its potential.
Info Available:	Localization and Access, Geology information, Mine Developments, Mineralization, Reserves, Photos and Maps
Cristo Jesus
Concession:	Exploration
Owner:	Martín Reyes Chávez
Company:	N/A
State:	Sinaloa
Municipality:	San Ignacio
Product:	Gold and silver
Opportunity:	The owners of Cristo Jesus are interested in finding a partner who can lead a detailed exploration program to assess the project's potential.
Info Available:	Location and Access, Geology Information, Mineral Deposits, Mineral Developments, Reserves, Photos and Maps
La Yesca
Concession:	Exploration
Owner:	Irma Adriana Urrieta Gonzalez
Company:	N/A
State:	Nayarit
Municipality:	La Yesca
Product:	Gold and silver
Opportunity:	The owner of the Xora property is looking for junior mining company to perform a detailed exploration program in order to assess its potential.
Info Available:	Localization and Access, Geology information, History, Mineralization, Reserves, Photos and Maps
San Jose
Concession:	Exploration
Owner:	Guillermo Rodriguez Jara
Company:	N/A
State:	Sonora
Municipality:	Trincheras
Product:	Gold and silver
Opportunity:	Dra. Teresita Armida Ayala Soto is looking for junior exploration company to finance and direct an exploration program to evaluate the real potential of the project.
Info Available:	Localization and Access, Infrastructure, Mineral History, Regional Geology, Geology and Mineralization, Mining Works, Mineral Potential, Photos and Maps.
San Juan Nepomuceno
Concession:	Exploitation
Owner:	Mr. Vicente Arreguin Vega
Company:	N/A
State:	Querétaro
Municipality:	Cadereyta
Product:	Gold, silver, lead, zinc and mercury
Opportunity:	The owner of the San Juan Nepomuceno property is looking for a junior mining company to perform a detailed exploration program in order to assess its potential.
Info Available:	Localization and Access, Geology Information, Mineralization, Mine Developments, Reserves, Photos and Maps
Santa Maria del Oro
Concession:	Exploitation
Owner:	Ing. Ramón Farias
Company:	Anfaza, S.A. de C.V.
State:	Guadalajara
Municipality:	Jalisco
Product:	Gold and silver
Opportunity:	The good infrastructure conditions, geological location and high density of mineralized structures detected within the district make this mine very attractive for modern technology exploration purposes.
Info Available:	Location and Access, Geology Information, Ore Deposit, Mining System, Previous Mining Works, Photos and Maps.

Copalquin
Concession:	Exploration
Owner:	N/A
Company:	Cía Minera Copalquín, S.A. de C.V.
State:	Durango
Municipality:	Tamazula
Product:	Silver and gold
Opportunity:	The properties are open to be optioned for exploration, but Minera Copalquin Company is open to any kind of proposals.
Info Available:	Location and Access, Geology Information, Ore Deposit, Reserves, Previous Mining Works, Photos and Maps

Cobriza
Concession:	Exploitation
Owner:	Dr Ricardo Montaño
Company:	N/A
State:	Durango
Municipality:	San Dimas
Product:	Silver, gold, lead, zinc and copper
Opportunity:	The owners of these two projects are searching for investment capital or a strategic alliance that could provide with the necessary resources to conduct a detailed exploration program in order to assess its geological potential, as well as, determining the project's reserve base.
Info Available:	Localization and Access, Geology Information, Mining Developments, Photos and Maps
Comanja 1
Concession:	Exploitation
Owner:	Ing. Rubén Ortiz Díaz Infante
Company:	Ingeniería Analítica y Minera, S.A. de C.V.
State:	Northeast of the City of Leon, Guanajuato State and State of Jalisco
Municipality:	Lagos de Moreno
Product:	Zinc, lead, copper, silver and gold
Opportunity:	Mr. Diaz is looking for an investor partner who can boost an exploratory program that includes geophysical and geochemical surveys in order to evaluate the claim.
Info Available:	Location and Access, Physiography, Geology Information, Recent Deposits, Mine Works, Photos and Maps
Huicicilila
Concession:	Exploitation
Owner:	Ramón Farías García
Company:	Grupo ANFAZA, S.A. de C.V.
State:	Nayarit
Municipality:	Compostela
Product:	Gold and silver
Opportunity:	Grupo ANFAZA is looking for an investment partnership to participate in the exploration stage of the project.
Info Available:	Location and Access, Geology Information, Ore Deposits, Reserves, Previous Mining Works, Photos and Maps
La Cilica
Concession:	Exploration
Owner:	Mr. Ramón Díaz Chinchillas
Company:	N/A
State:	Distrito Federal
Municipality:	Urique
Product:	Silver, gold, copper, lead and zinc
Opportunity:	Mr. Diaz is looking for an investor to boost geophysical and geochemical exploratory work to evaluate the potential of the mine.
Info Available:	Location and Access, Geology information, Type of Rocks, Minerals Deposits, Potential, Mine Works, Photos and Maps
La Delfina
Concession:	Exploitation
Owner:	N/A
Company:	Minas Unidas del Sur S.A. de C.V.
State:	Guerrero
Municipality:	N/A
Product:	Silver, lead and zinc
Opportunity:	Minas Unidas del Sur is looking for a partner in order to develop an exploration program that can confirm the real extension of ore deposit.
Info Available:	Location & Access, Geology Information, Ore Deposits, Mineral Developments, Reserves, Mineral System, Photos and Maps
La Dura
Concession:	Exploitation
Owner:	Miguel Ángel Matas Martínez
Company:	Compañía Minera El Alizal, S.A. de C.V.
State:	Durango
Municipality:	Tamazula
Product:	Gold and silver
Opportunity:	Looking for investment partner. Option agreements to explore the property.
Info Available:	Location and Access, Geology Information, Mineral Deposit, Reserves, Previous Mining Works, Photos and Maps
La Esperanza
Concession:	Exploration
Owner:	Mr. Manuel Quijada Figueroa
Company:	Golden Bear Resources, S.A. de C.V.
State:	Sonora
Municipality:	Bacanora
Product:	Silver, copper, gold, zinc, cobalt, nickel and lanthanum
Opportunity:	The owners of the La Esperanza project are interested in finding an investor who is willing to commit and underake a formal exploration program through an option Agreement that will lead to the sale of the project.
Info Available:	Localization and Access, Infrastructure, Physiography, Geology Information, Alteration - Mineralization, Photos and Maps.
La Goldcona
Concession:	Exploitation
Owner:	Legally held under purchase option to Golden Bear Resources, S.A. de C.V.
Company:	Golden Bear Resources, S.A. de C.V.
State:	Sonora
Municipality:	Alamos
Product:	Gold and silver
Opportunity:	Golden Bear Resources is looking for an investor to participate in financing an exploration program to upgrade the resource estimation to proven and probable reserves and eventually to fully develop the project to a low scale commercial production.
Info Available:	Location and Access, Infrastructure, Mining History, Geology Information, Deposit Type, Mineralization, Alteration, Exploration, Resources, Photos and Maps.
Real de Belem
Concession:	Exploitation
Owner:	N/A
Company:	Cía Minera Dorosa, S.A. de C.V (MD)
State:	Mexico City
Municipality:	N/A
Product:	Gold and silver
Opportunity:	Minera Dorosa is 95 % controlled by a single shareholder and has the rights over the mining claim. MD introduced the access infrastructure, electrical power, water supply and has acquired mining equipment and 200 ton day processing equipment. MD is now looking for a partner to invest US $1.4 million to install the plant and start operations. MD accounts with Federal environmental and explosive permits. Eventually MD plans to sell the entire project.
Info Available:	Location and Access, Geology information, Ore Deposits, Reserves, Previous Mining Works, Exploitation Method, Photos and Maps.
Pinguico
Concession:	Exploration
Owner:	Mrs Maria Ascención Canchola
Company:	N/A
State:	Guanajuato
Municipality:	Guanajuato
Product:	Gold and silver
Opportunity:	The owners of the Pinguico project are seeking investors in order to carry out a detailed exploration program that could assess and conclude the area's potential.
Info Available:	Localization and Access, Geology Information, Mining Development, Mineralization, Reserves, Photos and Maps.
Tatalayo
Concession:	Exploration
Owner:	Mr. José Santiago Juarez Martinez
Company:	N/A
State:	Guanajuato
Municipality:	Guanajuato
Product:	Gold and silver
Opportunity:	The owners of the Tatalayo project are seeking investors in order to carry out a detailed exploration program that could assess and conclude the areas potential.
Info Available:	Localization and Access, Geology Information, Mine Developments, Mineralization, Photos and Maps
Trinidad
Concession:	Exploration
Owner:	Mr. Alejandro Loera Chavez
Company:	N/A
State:	Baja California Sur
Municipality:	San José del Cabo
Product:	Copper and molybdenum
Opportunity:	The owner of the Trinidad property is looking for a junior mining company to perform a detailed exploration program in order to assess its potential.
Info Available:	Localization & Access, Geology information, Ore Deposits, Photos and Maps.
Xichú
Concession:	Exploitation
Owner:	Mr. Carlos Natividad Martínez Sánchez
Company:	N/A
State:	Guanajuato
Municipality:	Xichú
Product:	Gold and silver
Opportunity:	The owner of the Xichu property is looking for a junior mining company to perform a detailed exploration program in order to assess its potential.
Info Available:	Localization and Access, Geology Information, Mineralization, Mine Developments, Photos and Maps

Agau
Concession:	Exploitation
Owner:	Minera Nafta SA de CV
Company:	Miranda Mining
State:	North of Acapulco and west of Tierra Colorada
Municipality:	N/A
Product:	Silver and gold
Opportunity:	Miranda Mining is looking for a joint venture partner to implement an exploration that must include the dewatering and rehabilitation of the mine and sampling the ld mining works. Also a diamond drilling program must be conducted to explore the continuity of mineralization at depth.
Info Available:	Location and Access, Geology Information, Mineral Deposit, Previous Mining Works, Photos and Maps
La Verde
Concession:	Exploitation
Owner:	Aurelio Ríos Nuñez, Manuel Coronel Beltrán and Ciro Mesa Chaidez
Company:	N/A
State:	Sinaloa
Municipality:	Cosalá
Product:	Gold and silver
Opportunity:	The owners of the concession are looking for an investor in order to formalize a joint venture agreement and carry on a systematic exploration program to evaluate the mineral potential of the area.
Info Available:	Location and Access, Geology Information, Ore Deposits, Mining Works, Reserves, Photos and Maps.
Las Bermejas
Concession:	Exploitation
Owner:	Mr. Xavier Banderas Valencia
Company:	Compañía Industrial de Michoacán
State:	Michoacán
Municipality:	Huetamo
Product:	Gold
Opportunity:	CMIM is looking for a partnership to invest in the exploration activities in order to increase the reserves base and extract them for further economic benefit. This investment will allow the company to obtain a credit line for the acquisition of process plant. Furthermore, the company is interested in selling the whole investment project to national or international investors.
Info Available:	Location and Access, Geology Information, Ore Deposits, Reserves, Previous Mining Works, Photos and Maps.
Las Minas
Concession:	Exploration
Owner:	Mr. Andrés Arellano
Company:	N/A
State:	Sinaloa
Municipality:	San Ignacio
Product:	Gold, silver, copper and molybdenum
Opportunity:	The owners of Las Minas and La Esperanza claims are interested in looking for a partner to develop and carried out a detailed exploration program in the zone.
Info Available:	Location and Access, Geology Information, Mining History, Reserves, Photos and Maps
Providencia
Concession:	Exploitation
Owner:	Mr. Rubén Ortíz Díaz Infante
Company:	N/A
State:	Guanajuato
Municipality:	San Felipe
Product:	Silver and gold
Opportunity:	Mr. Díaz is convinced the district has received very limited exploration. The work done during its 43 years of activity put in evidence the most obvious structures and was mainly oriented to exploitation. The typical Mexican vein system similar to La Providencia operated with the technology available at the beginning of the 20th century and used to have an operation life much longer then 43 years. Mr. Díaz is looking for a partner that can contribute the capital, the technology and the knowledge to implement this exploration program and confirm the similarities between Guanajuato and La Providencia Mining Districts.
Info Available:	Location and Access, Geology Information, Ore Deposits, Historic Production, Mining Works, Photos and Maps.
San Andres
Concession:	Exploitation
Owner:	Cristina Quintero de Vela
Company:	Minera San Andrés de la Sierra, S.A. de C.V.
State:	Durango
Municipality:	Santiago Papasquiaro
Product:	Silver, gold, lead, zinc and copper
Opportunity:	Minera San Andrés de la Sierra is interested in formalizing a joint venture with a junior exploration company that can finance and carry out a complete exploration program in the mining district in order to reactivate it.
Info Available:	Location and Access, Mine History, Geology information, Mineral Ore, Minerology, Reserves, Photos and Maps.
Santa Elena
Concession:	Exploitation
Owner:	Mr. Pedro Trellez Serna y Socios
Company:	N/A
State:	Sonora
Municipality:	Banamichi
Product:	Gold and silver
Opportunity:	The owners of the Santa Elena project are interested in a partner who can lead a detailed exploration program in order to assess the project's potential.
Info Available:	Localization and Access, Geology Information, Mining History, Reserves, Photos and Maps.
Tres Ocotes
Concession:	Exploration
Owner:	Mr. Albino Beltrán Rojas
Company:	Minera Tres Ocotes, S.A. de C.V.
State:	Oaxaca
Municipality:	Villa de Silacayoapan
Product:	Silver, lead, zinc and gold
Opportunity:	Mr. Beltrán is interested in formalizing a joint-venture agreement with a junior exploration company to carry out a complete exploration program of the Legado 1 vein, in order to bring the project to production. Integral joint exploration program or eventually option the property.
Info Available:	Location and access, Mining History, Geology Information, Ore Deposits, Mineralogy, Resources, Photos and Maps.

There are 209 foreign mining companies exploring in Mexico,of which 75% are Canadian companies and 24 are from Ontario. In addition, there are 105 registered Mexican mining companies producing in Mexico.

Ontario Mining Company	Exploration Mining Projects	State
Agnico-Eagle Mines Ltd	Pinos Altos	Chihuahua
Amerix Precious Metals Corp.	Santo Domingo	Jalisco
Aquiline Resources Inc	La Jojoba and Santa Lucia	Sonora
Au Martinique Silver Inc	Bautista and El Socorro	Jalisco
Columbia Metals Corp Ltd	El Carmen, El Compa, La Joroba, Lluvia de Oro PII Colorado, Silica	Sonora
Excellon Resources Inc.	La Platosa/ Saltillera	Durango
Frontera Copper Corp	Cerro Chato	Sonora
Geoinformatics Exploration Inc	San Juan/ Tabisco	Sonora
Macmillan Gold Corp	Anna, Jicarilla and Mar/ Cerro de Oro and Santa Olaya/ Chino Gordo, El Zafiro, Palmira and Tetasiari/ Cucharas and El Oro/ La Violeta/ El Socorro, Fiebre de Oro, Mina Bautista, Realito and Yerbabuena	Durango, Zacatecas, Sinaloa, Nayarit Sonora Jalisco
Nayarit Gold Inc	Orion	Nayarit
Noranda Inc	El Pilar/ San Diego	Michoacán, Sonora
Northwestern Mineral Ventures	Picachos/ Tango	Durango, Sinaloa
Pacific Comox Resources Ltd	Mabel	Sonora
Queenston Mining Inc	Sierra Almoloya	Chihuahua
RNC Gold Inc	Picachos/ Tango	Durango, Sinaloa
Seafield Resources Ltd	La Silla	Sinaloa
Sierra Minerals Inc	Pueblo Nuevo and Rodeo/ San Martín	Durango, Sinaloa
Silver Dragon Resources Inc	Tierra Blanca	Durango
Sparton Resources Inc	Sierra Rosario	Sinaloa
Stingray Resources Inc	Delta I, El Indio, Elephant 8, Pelonachi	Chihuahua
Stroud Resources Ltd	Santo Domingo	Jalisco
Valdez Gold Inc	Los Jarros	Chihuahua
Virgin Metals Inc	Los Verdes	Sonora
Zaruma Resources Inc	San Antonio/ Luz de Cobre	Sonora

For Canadian suppliers interested in exporting to Mexico, most local competitors may also turn out to be potential customers. Some potential clients are described below:

Aire Comprimido Para La Mineria, SA de CV
Manufacturer of drilling equipment.

Aispell Productos Mineros, SA de CV
Manufacturer of instrumentation for mining and construction industries.

Comercializadora Minera del Norte, SA de CV
Manufacturer of abrasion resistant surfaces for the mining industry.

Componentes Mineros, SA de CV
Manufacturer of mining equipment and flotation cells.

Core-Dril Internacional, SA de CV
Manufacturer of drill tools and implements, hydraulic rock breakers, pneumatic tools, rock drills, and air compressors. Distributes internationally.

Expopartes, SA de CV
Manufacturer of oil drilling tools, gags and inserts. Distributes to the United States primarily.

Fabricas de Implementos Mineros, SA de CV
Manufacturer of impregnated, coated, covered or laminated textiles suitable for industrial use.

Grupo Coss y Orozco, SA de CV
Manufacturer of conveyor belts, and mine and plant infrastructure equipment.

Industrias Cabrera, SA de CV Manufacturer of friction disks. International distribution.

Ingenieria Dibujo y Geologia, SA de CV
Manufacturer of various supplies for the mining industry, including cutters, waterproof logbooks, specialized clothing, and GPS systems.

Maquinaria Intercontinental del Noreste, SA de CV
Manufacturer of arms and blades for driving machines, concrete and mortar mixers, rotary converters and transference cars. National distribution.

Maquinaria y Mantenimiento, SA Manufacturer of grinders, hammer mills, hoisting machines, masonry saws, etc. Distributes to Central America.

Materials y Equipo Petrolero, SA de CV Manufacturer of parts for drilling machines.

Mexico Water Management Consultants The Mexican branch of an international company specializing in the development, management and environmental protection of water resources, particular related to the mining industry.

Motores Variadores Reductores, SA de CV Manufacturer of track mining machinery, including rolling stock and electrical mechanical traffic signals. Distributes primarily to the United States.

Refacciones Neumaticas La Paz, SA de CV Manufacturer of spare parts, springs and pulleys for mining industry. Distributes to Peru and the United States.



There are several major distribution channels through which to distribute mining products in Mexico, including direct sales, sales representatives, importers and distributors:

Direct Sales

Mexico's mining industry can be split into three categories: large domestic producers (including Industrias Peñoles, Grupo Industrial Minera Mexico, Empresas Frisco and Luismin); small domestic producers, and foreign firms. The vast majority of mining activity in Mexico is performed by domestic producers. Domestic mining companies purchase directly from national and international suppliers, and there is a proven interest in Canadian mining products. However it is important to recognize that, given the size and purchasing power of the large domestic producers, companies such as Grupo Mexico command extremely competitive rates from their suppliers.

Sales Representatives and Agents

These intermediaries work under commission plans, selling the mining products and even offering post-sales services and work as a link between manufacturers and suppliers. The commission depends on variables such as the type of product and the order's size. The mark-up of the agents generally varies between 1% and 8% of the total sale value and no stock is kept. Most of the agents are established in Monterrey, Central Mexico, Guadalajara, State of Mexico, and Mexico City.

Distributors

Distributors are generally supplied by importers and most of them are located near the industries. Unlike sales representatives and agents, distributors generally have a large store. Their profit margin is approximately 5% to 10%, which is often the discount they are allowed by importers.

Importers

Intermediaries are very important in the mining industry, as their share of direct trade/sourcing is lower. An importer is the link between the manufacturer and the end user, they know local markets thoroughly and have very good network in Mexico. Their activities are increasingly focused on additional services around the product itself (quality assurance, sourcing and transfer of knowledge, stock keeping, and fast delivery).

Most importers have built up strong relationships with end users and are sometimes regarded as the preferred house supplier. An importer is able to provide important services to its clients such as after-sales service, advice, and stock holding. As a rule of thumb, importers must mark up their landed cost price within 15% to 35% in order to be able to sell a product and sometimes can double their commission as warehouse distributors.

Contact:	Ing. Daniel Barragan Cantu
Position:	Corporate Procurement Manager
Address:	Calz. Manuel Gómez Marín 444 Col. Torreón Residencial Torreón, Coahuila C.P. 27250
Phone:	(871) 729 3357
Fax:	(871) 729 3398
Email:	daniel.barragan@penoles.com.mx
Website:	www.penoles.com.mx
President:	Jaime Lomelín Guillén
Establishment:	1887
Mines:	Sonora - La Herradura (gold) Chihuahua - Bismark (zinc) and Naica (lead, zinc) Durango - La Ciénega (gold) Zacatecas - Sabinas (zinc), Fresnillo (silver) and Francisco I. Madera (zinc) Guanajuato - Tizapa (zinc)

Profile:

Peñoles is a mining group with integrated operations in smelting and refining nonferrous metals, and producing chemicals. Peñoles is the world's top producer of refined silver, metallic bismuth and sodium sulfate, the leading Latin American producer of refined gold, lead and zinc. They are one of the largest exporters in Mexico's private sector, with the following significant mining productions:

• Fresnillo - the world's richest silver mine
• La Ciénega - Mexico's richest gold mine
• La Herradura - Mexico's largest gold mine
• Naica - Largest lead producing mine in Mexico
• Francisco I. Madera - Mexico's largest zinc mine
• Met-Mex - the world's fourth largest mellurgical complex, and the largest producer of refined silver and metallic bismuth
• Química del Rey - the world's largest sodium sulphate producing plant

Peñoles is part of Grupo BAL, a privately held diversified group of independent Mexican companies that includes: Grupo Palacio de Hierro (department stores); Grupo Nacional Provincial (insurance); Profuturo GNP (individual retirement funds); Valores Mexicanos-Casa de Bolsa (financial services); Crédito Afianzador (bonding); and various agribusinesses.

Peñoles 2006 Production Volumes

	1Q	2Q	3Q	4Q	Total
Mining:
Ore Milled	2,057	2,093	2,095	1,993	8,238
Gold (Oz)	94,845	95,681	99,153	90,734	380,413
Silver (Oz)	12,056,818	12,666,526	11,747,046	10,446,647	46,917,037
Lead (MT)	16,550	16,706	15,120	13,665	62,041
Zinc (MT)	53,163	54,123	47,730	50,688	205,704
Copper (MT)	3,233	2,890	4,379	3,205	13,707
Metals:
Gold (Oz)	349,800	427,959	414,005	375,133	1,566,897
Silver (Oz)	24,300,593	25,411,883	24,571,849	25,029,390	99,313,714
Lead (MT)	36,640	36,915	34,521	31,487	139,563
Zinc (MT)	53,349	61,534	64,246	56,515	235,644
Copper (MT)	2,545	2,208	2,010	2,427	9,190
Cadmium (MT)	231	260	261	241	993
Bismuth (MT)	246	324	304	312	1,186
Bullion (MT)	41,867	42,177	34,493	35,503	154,040
Chemicals:
Sodium Sulfate (MT)	150,000	151,000	155,500	155,500	612,000
Magnesium Oxide (MT)	16,430	23,297	19,402	23,316	82,445
Ammonium Sulfate (MT)	52,918	53,535	45,596	41,192	193,241

Current and Upcoming Projects for Industrias Peñoles:

Chief Executive Jaime Lomelin, speaking at the Reuters Latin American Investment Summit in Mexico City, said the company had no plans to expand through acquisitions but was increasing its exploration budget to $80 million in 2007 from $60 million in 2006. Peñoles will see output rise gradually for the next few years, then jump by about 10 million ounces in 2010 or 2011 as new projects start up.

Fresnillo is considered the world's richest silver deposit, and Peñoles is investing heavily in new projects in the zone. Peñoles is also investing about $200 million to expand the zinc capacity at its mammoth Metmex multi-metal refinery to 320,000 tonnes from its current 240,000 tonnes over eight years. ^xxxiv

Industrias Peñoles, as part of a joint venture of MAG Silver Corporation, continue a diamond drill program on the Juanicipio Joint Venture, Zacatecas State, started in 2005. The exploration Joint Venture covers MAG's wholly-owned 8,302 hectare Juanicipio Property in Zacatecas, Mexico and Peñoles can earn a 56% interest on the property by expending US$5,000,000 over the four year period.

Purchasing of Goods & Services (2004) for Industrias Peñoles:

	Quantity		USD Millons
	POs	Items
Materials Handling Equipment	5,069	20,393	43.2
Chemicals	916	1,084	38.5
Fuel	441	424	37.9
Drilling Equipment	1,584	7,582	14.4
Pumping Equipment	2,755	5,458	12.0
Non-Ferrous Metals	106	156	10.6
Electrical Equipment	913	1,859	10.4
Piping & Fittings	2,064	6,740	10.3
Measurement Instruments Control	1,919	4,189	9.2
Steel	1,672	3,465	8.8
Explosives	726	2,848	8.2
Grinding Balls	64	113	7.8
Electrical Appliances	3,409	9,667	6.7

Contact:	Ing. Manuel Tellez Piña
Position:	Corporate Procurement Manager
Address:	Av. Insurgentes Sur, 3rd Floor Col. Roma Sur México, D.F. C.P. 06760
Phone:	(52 55) 5264 0929
Fax:	(52 55) 5574 8465
Email:	mtellezp@mm.gmexico.com
Website:	www.gmexico.com
President:	Lic. German Larrea Mota Velasco
Establishment:	1978
Employees:	21,000 in 7 countries
Mines:	Sonora - Cananea (copper, silver, gold) and La Caridad (copper, molybdenum) Coahuila - Santa Barbara (zinc, lead, copper, silver) and Rosita (coal) Zacatecas - Charcas (zinc, lead, copper, silver) and San Martin (zinc, lead, copper, silver) Taxco - Taxco
Refineries:	Sonora - La Caridad complex San Luis Potosi
Major Prospects:	El Arco Buenavista Bolaños Anganueo
Foreign Mines:	Cuajone and Toquepala in Peru El Salado, Sierra Aspera, Cartanave and Esperanza in Chile Ray, Silver Bell, Mission, Coy, Immel and Young in the US
Foreign Refineries:	Hayden, Globe and Amarillo in the US Complejo Ilo in Peru

Grupo Mexico Profile:

Grupo Mexico is a holding company of mining and transportation operations which are performed through two subsidiaries: the Americas Mining Corporation (AMC), a subholding company which groups mining operations in Mexico and Peru, and Infraestructura y Transportes Mexico, S.A. de C.V. (ITM), a sub-holding company that groups activities in freight transportation, logistics and multi-modal services.

Mining subdivisions of AMC include:

• Minera Mexico (MM) is the largest mining company in Mexico, and produces copper, zinc, silver, gold and molybdenum.
• Southern Copper Corporation (SCC) is the second largest mining company in the world in terms of copper reserves, listed in New York and Peru.
• ASARCO (United States)

Through Americas Mining Corporation (AMC), Grupo Mexico ranks as the world's third largest copper producer, second in molybdenum, fourth largest producer of silver and eight largest producer of zinc. It also ranks as the world's second largest company and first among companies publicly listed in stock markets in terms of copper ore reserves.

Consolidated annual production includes 950,000 tons of refined copper, 155,000 tons of zinc, 25 million oz of silver, as well as significant amounts of gold, molybdenum and other by-products, with total annual sales of almost US$4 billion.

2004 Global Copper Consumption and Relevant Producers

Tonnes on an Annual Basis

World Consumption: 16,634,000TM
Country	Percentage
China	21%
Europe	25%
Japan	7%
L.A.	3%
U.S.A.	14%
Other	30%

Refined World Supply: 16,082,000MT
Country	Percentage
Codelco	10%
GMexico	5.5%
Kazakhmys	2.7%
KGHM	3.5%
Mitsubishi	3.6%
Nippon	4.3%
Norddeutsche	3.7%
Norilsk	3%
Phelps Dodge	6.1%
Sumitomo	2.7%
Other	54.8%

Expected deficit in 2004 of 552 K.tonnes confirms a strong copper price performance for the next 2 years

Grupo Mexico is publicly presenting investment plans in new copper mining projects that would begin in 2007 and grow their production steadily over coming years. The company expects to "significantly" raise its copper output in 2007 as mine expansions come on line in Peru but warned of slower profit growth after dramatic increases earlier in 2006.

La Caridad mine, crippled by a strike for several months in 2006, is now at about 95 percent of output, and Cananea, the firm's other large Mexican copper mine, is processing as much as 300,000 tonnes of rock some days, beating records.

Grupo Mexico plans to add 109,000 tonnes of copper capacity between Cananea and its Tia Maria, Peru mine by 2009. Another 283,000 tonnes per year are planned for 2011. Two large new mines, Los Chancas in Peru and El Arco in Mexico's Baja California peninsula, are due to start producing in 2011 and 2012 respectively.

Grupo Mexico says its growth model is based on the expansion plans and new mines and does not for now contemplate mergers or acquisitions of other firms.^xxxv

Contact:	Daniel Méndez Landó
Position:	Procurement Manager
Address:	Miguel de Cervantes Saavedra No. 255 Col. Ampliación Granada México, D.F. C.P. 11520
Phone:	(52 55) 5328 5805 ext. 06
Fax:	(52 55) 5328 5898
Email:	dmendez@porcelainite.com.mx
Website:	www.grupocarso.com.mx
President:	C.P. Humberto Gutiérrez Olvera Zubizarreta
Mines:	Sonora - Minera María Chihuahua - San Francisco del Oro Zacatecas - Minera Tayahua
Not in Operation:	Zacatecas - Real de Angeles Baja California - San Felipe
Chemical Plants:	Química Flúor (fluorohydric acid)

Empresas Frisco Profile:

Frisco is the mining company of Grupo Carso, one of the biggest business groups in Mexico, majority-owned by Carlos Slim. Following an extended period of keeping a low profile, Frisco acquired Minera Tayahua, in the State of Zacatecas in 1999. The mine is currently producing 8,000 tons of zinc concentrates, 2,700 tons of lead and 3.2 kilos of silver per month. In May 2004, Frisco reopened the San Francisco del Oro mine in the State of Chihuahua. This property is currently producing 3,000 tons of zinc concentrates, 1,900 tons of lead and 2 kilos of silver per month. Minera María is producing 2,000 tons of copper per month. Analysts anticipate a new period of growth for this company^xxxvi.

Current and Upcoming Projects for Empresas Frisco:

In May of 2006, the company expects to complete an expansion project at Minera María, representing an investment of $ 16.15 million. The company will also complete in May the construction of a floating milling plant in the same mine, representing an investment of $ 8.5 million.

Currently, Frisco is exploring a project known as Santa Fe in the state of Chiapas. The company plans to invest 1.7 million in 2006 2007, but faced land problems that have slowed the project down ^xxxvii.

Contact:	Sr. Agustín Vázquez del Mercado
Position:	Procurement Manager
Address:	Pino Suárez Oriente 308 Col. Centro Durango, Dgo. C.P. 34000
Phone:	(618) 812 4112
Fax:	(618) 811-2837
Email:	avasquez@luismin.com
Website:	www.luismin.com
Mines:	Durango - San Dimas (silver and gold) Querétaro - San Martín (silver and gold) and El Bermejal (silver and gold) Guerrero - Nukay (gold)

Luismin Profile:

Luismin is owned by Goldcorp, Inc., a Canadian company, which acquired the company through its acquisition of Wheaton River Minerals. Not long ago, Luismin was part of a Mexican business group called San Luis Corp. In spite of these ownership changes, management has not changed at all, allowing for consistency in strategic and operational decisions^xxxviii.

Current and Upcoming Projects for Luismin:

Luismin's corporate strategy is currently focused on the "Guerrero Gold Belt". After acquiring the Nukay operation and El Bermejal project, it is developing the Los Filos project, located in the Mezcala region, in the State of Guerrero. Recently, top officials of the company have been analyzing properties in the north of the country as part of the company's growth strategy.

AIRECO SA
Contact:	Heriberto Rodriguez
Position:	General Director
Address:	Convento de San Jeronimo No. 2 Santa Monica Mexico, D.F. C.P. 53470
Phone:	(52 55) 3094 9032
Fax:	N/A
Email:	heriberto_rodriguez@aireco.com.mx
Website:	www.aireco.com.mx
Profile: Mexican distributor and service provider for compressors, filters, machinery and accessories for the mining and industrial sectors. They currently import products from Canada, the United States and the United Kingdom, including such brands as Sullaire, Aero-Motive, Woodhead, Acumen and Hepburn.
AMECO MEXICO
Contact:	Andres Magallon
Position:	Crane Manager
Address:	Autopista México-Querétaro #3065 Frac. Industrial Tlaxcolpan Tlalnepantla, Edo de Mexico C.P. 54040
Phone:	(52 55) 8503 3500
Fax:	(52 55) 5390 6835
Email:	andresmagallon@ameco.com.mx
Website:	www.ameco.com.mx
Profile: Private Mexican distributor and service provider for heavy construction machinery and drilling equipment to the mining and construction sectors. Currently import from the United States, Puerto Rico, Iraq, Kuwait and Chile, and carry such brands as Grove, Hamm, Ferrari, Eager Beaver, JCB, Reynolds, Tesmec and Terex.
COMPRESORES PERFORADORAS Y ACERO DE BARRENACION
Contact:	Francisco Lopéz
Position:	General Director
Address:	Amsterdam 173 Bis Interior 1 Col. Hipodromo Condesa, Del. Cuauhtemoc Mexico, D.F.
Phone:	(52 55) 5822 4758
Fax:	(52 55) 5822 4758
Email:	flc5006@hotmail.com
Website:	N/A
Profile: Private Mexican distributor of diesel compressors for the construction and mining sectors. Interested in importing internationally.
CICSA, SA DE CV
Contact:	Enrique Rodriguez
Position:	General Director
Address:	Segunda Cerrada de Calle #4 Col. Granjas San Antonio Mexico, D.F. C.P. 09070
Phone:	(52 55) 5685 1515
Fax:	(52 55) 5685 3452
Email:	cicsa1@unete.com.mx
Website:	N/A
Profile: Mexican distributor of compressors to industrial and energy companies within Mexico City.
COPSA
Contact:	Miguel Abarca
Position:	General Director
Address:	C. Alacho Lote 2 Mz. 230 Col. Héroes de Padierna Mexico, D.F. C.P. 14200
Phone:	(52 55) 5631 4071
Fax:	N/A
Email:	copsa56@terra.com.mx
Website:	N/A
Profile: Mexican distributor and service provider for compressors, accessories, drilling and pneumatic equipment to the construction and mining sectors. Currently imports from the United States.
GRACIDA
Contact:	Carlos Gracida
Position:	General Director
Address:	C. Enrique Diaz de León #1226 Col. Del Fresno Guadalajara, Jalisco C.P. 44899
Phone:	(52 33) 3810 3464 / (52 33) 3810 0563 / (52 33) 3810 9085
Fax:	(52 33) 3812 0944
Email:	asistentegracida@gracida.net
Website:	www.gracida.net
Profile: Mexican distributor and service company for compressors, lighting structures, power energy generators, sealers and accessories for the mining and construction industries. Currently imports from the United States and Canada, and carries such brands as MATTEI. Client base includes Constructora Electrica ALUMSA, Grupo Zapata and Grupo AHMSA.
IMOCOM DE MEXICO
Contact:	Alejandro Rodriguez
Position:	General Marketing Manager
Address:	Av. Presidente Juárez #2032-3 Tlalnepantla, Edo de Mexico C.P. 54070
Phone:	(52 55) 9114 3918
Fax:	(52 55) 9114 3930
Email:	imocom@imocom.com.mx
Website:	www.imocom.com.mx
Profile: Private Mexican distributor of specialized pumps, concrete machinery and accessories to the mining sector. Currently imports from the United States, Germany and Canada, and carries such brands as Schwing America, Ciber, Hamm and Vogele.
PERFORDORA DE MINAS
Contact:	Antonio Alcantara
Position:	General Manager
Address:	Rancho Tezonapa No. 55 Col. Campestre Coyoácan Mexico, D.F. C.P. 04938
Phone:	(52 55) 5679 3810
Fax:	(52 55) 5679 3810
Email:	marco_alcantara@hotmail.com
Website:	N/A
Profile: Mexican distributor of drilling equipment and pneumatic machinery for small to medium sized companies in the mining sector. Currently imports from the United States and carries the Mitwester Machinery Company brand.
REPRESENTACIONES Y COMERCIALIZACIONES MEXICANAS
Contact:	Ana Dolores Lopéz
Position:	Managing Director
Address:	Ampudia del Valle No. 18 Col. Centro Jiutepec, Morelos C.P. 62550
Phone:	(777) 320 7422 or (777) 319 9369
Fax:	(777) 320 7755
Email:	recome@recome-stenuick.com.mx
Website:	www.recome-stenuick.com.mx
Profile: Private Mexican distributor of compressors, hammers, drilling equipment and machinery, and hole bits for the mining and construction industry. Currently imports from the United States, Italy and Canada, and carries such brands as Surestrike International, Pachiosi Drill Spa and Atlas Copco.
SERVICIOS INTEGRALES PARA CONSTRUCCIÓN Y MINERÍA
Contact:	Jorge Sánchez
Position:	Representative
Address:	Prolongación de Trigo No. 251-1 Col. Valle del Sur, Del. Itzapalapa Mexico, D.F. C.P. 08819
Phone:	(52 55) 1338 2642
Fax:	(52 55) 5581 2280
Email:	servicios_integrales_pcm@hotmail.com
Website:	N/A
Profile: Private Mexican distributor of compressors, drilling equipment and machinery for the mining, industrial and automotive sectors. Currently imports from the United States, Belgium and India, carrying such brands as Rockmore International.

PRIMER FORO INTERNACIONAL MINERO
First International Mining Forum
Venue:	Durango, Durango
Date:	March 12-14, 2007
Organizer:	Gobierno del Estado de Durango/Government of the State of Durango, Camara Minera de Mexico/Mexican Mining Chamber and the Banco de Comercio Exterior/Foreign Trade Bank
Contact:	C. P. Ismael Alfredo Hernández Deras
Website:	www.1forointernacionalminero.gob
Sectors:	Mining
1er CONGRESO INTERNACIONAL DE RECURSOS MINERALES Y ENERGÉTICOS
International Congress of Mineral Resources and Energy
Venue:	Nueva Rosita, Coahuila de Zaragoza, México
Date:	March 12-16, 2007
Organizer:	Centro Universitario de Informática de la Escuela Superior de Ingeniería, Universidad Autónoma de Coahuila/Central University of Information of the School of Engineering, University of Coahuila
Contact:	Lic. Francisco Rico Pérez
Website:	www.1forointernacionalminero.gob
Sectors:	Mining, energy, petroleum geology, metallurgy, geochemistry, geotechnology, urban geology, risk and dangerous geology, alternative energies, remote sensors, techtonics, education, sustainable development in mining.
EXPO INDUSTRIAL
Venue:	Expo Forum, Hermosillo, Sonora
Periodicity:	Annual
Date:	March 21-23, 2007
Organizer:	Canacintra Delegación Hermosillo/Trade Show
Contact:	contacto@canacintrahermosillo.com
Website:	www.expoindustrial.net
Sectors:	Assembly plants, mining, machine tools and metalworking agro industrial and construction
Exhibitors:	210
Attendance:	6,000
EXPOMINERA / CONFERENCIA INTERNACIONAL DE MINERÍA
International Mining Congress and Exhibit
Venue:	Veracruz
Periodicity:	Biennial
Date:	October 10-13, 2007
Organizer:	Congress of Mexican Geologists, Mining Engineers and Metallurgists
Contact:	Sra. Karina Mora
Email:	kmora@turycon.com.mx
Website:	www.turycon.com.mx
Sectors:	Mining
Events:	100 papers presented covering exploration, mining, metallurgy and other topics related to mining.
Exhibitors:	250 exhibitors in 2005.
Attendance:	1,000 conference delegates plus 2-3,000 show visitors
CONVENCIÓN NACIONAL DE GEOGRAFÍA 2007
National Geography Convention
Venue:	Expo Guadalajara, Guadalajara, Jalisco
Date:	April18-20, 2007
Contact:	convencion.geografia@inegi.gob.mx
Website:	http://mapserver.inegi.gob.mx/geografia/espanol/eventos/cng2007/index.cfm
Sectors:	Geography and development, national statistics systems, geographic information.
XVII CONGRESO INTERNACIONAL DE METALURGIA EXTRACTIVA
International Congress for Extraction Metallurgy
Venue:	Hermosillo, Sonora México
Periodicity:	Annual
Date:	May 2-4, 2007
Organizer:	Universidad de Sonora División de Ingeniería and Departamento de Ingeniería Química y Metalurgia / University of Sonora Division of Engineering and the Department of Chemical Engineering and Metallurgy
Website:	www.geomin.com.mx
Sectors:	Hydrometallurgy, mineral Processing, electrometallurgy, new material design, waste treatment strategies, simulation and control of metallurgical processes, sustainability in mining.
ASAMBLEA GENERAL DE LA UNIÓN AMERICANA DE GEOFÍSICA
General Assembly of the American Geophysics Union
Venue:	Acapulco Guerrero, México.
Date:	May 22-25, 2007
Contact:	ja-help@aqu.org
Website:	www.aqu.org
Sectors:	Mining and geophysics

Consejo de Recursos Humanos Minerales
Contact:	Ing. Francisco José Escandón Valle
Position:	President
Address:	Blvd. Felipe Ángeles Km. 93.50-4 Col. Venta Prieta Pachuca, Hidalgo C.P. 42080
Phone:	(01 771) 711 4016
Fax:	(01 771) 711 3938
Email:	fescandon@coremisgm.gob.mx
Website:	www.coremisgm.org.mx
Mandate:	Gathers basic geological information about the Mexican territory, develops first stage exploration projects and gives technological support to small & medium sized mining companies around the country.
Fideicomiso de Formento Minero / Mining Promotion Trust
Contact:	Pedro Guerra Menéndez
Position:	General Manager
Address:	Puente de Tecamachalco No 26, 2o piso Col. Lomas de Chapultepec, Miguel Hidalgo México, D.F., C.P. 42080
Phone:	(52 55) 52499501
Fax:	(52-55) 52499500
Email:	pguerra@fifomi.gob.mx
Website:	www.fifomi.gob.mx
Mandate:	Finances local small to medium sized mining projects with positive social benefits.
Secretaría de Economía / Ministry of the Economy
Contact:	Dr. Francisco Querol Suñe
Position:	General Director of Mining Promotion
Address:	Acueducto No 4, 4° piso Esq. Calle Catorce Bis Col. Reforma Social, Del. Miguel Hidalgo México, D.F. C.P. 11650
Phone:	(52 55) 5202 8331 or (52 55) 5540 0629
Fax:	(52 55) 5202 2481
Email:	fquerol@economia.gob.mx
Website:	www.economia.gob.mx
Mandate:	Granting and overseeing all mining concessions in the country.

Asociación de Directores Estatales de Minería, A.C. / Association of State Mining Directors
Contact:	Ing. José Antonio Nieto González
Position:	President and current Mining State Director for San Luis Potosi
Address:	Jardín Colón No. 23, Planta Alta Centro Histórico San Luis Potosí, SLP C.P. 78000
Phone:	(52 444) 812 6814
Fax:	(52 444) 812 6814 - ask for fax tone
Email:	nietoja@prodigy.com.mx
Website:	N/A
Mandate:	Government-appointed state representatives responsible for collecting information about companies in their respective states. They do not however have decision-making authority.
Asociación de Ingenieros de Minas, Metalurgistas y Geólogos de México, A.C. / Association of Mining Engineers, Metallurgists and Geologists of Mexico
Contact:	Lic. César Vázquez Talavera
Position:	General Director
Address:	Av. Del Parque No 54 Col. Nápoles, Del. Benito Juárez México, D.F. C.P. 03810
Phone:	(52 55) 5543 9130 ext. 32
Fax:	(52 55) 5543 9005
Email:	gcia_general@aimmgm.org.mx
Website:	www.geomin.com.mx
Mandate:	Actively involved in industry planning, provides technical consultation to government authorities, promote mining, metallurgy and earth sciences.
Asociación Mexicana del Cobre, A.C. / Mexican Copper Association
Contact:	Oscar González Rocha
Position:	President
Address:	Av. Sonora No 166, Piso 1 Col. Hipódromo Condesa México, D.F., C.P. 06100
Phone:	(52 55) 5543 9130 ext. 32
Fax:	(52-55) 55439005
Email:	asociacion@aimmgm.org.mx
Website:	www.fifomi.gob.mx
Mandate:	Part of the Fideicomiso de Formento Minero, dedicated specifically to the copper mining industry.
Camára Nacional de la Industria del Hierro y del Acero / National Chamber of the Iron and Steel
Address:	Amores No. 338 Col. Del Valle México, D.F. C.P. 03100
Phone:	(52 55) 5543 4443 ext. 47
Fax:	(52 55) 5687 0517
Email:	info@canacero.org.mx
Website:	www.canacero.org.mx
Camára Minera de México (Camimex) / Mexican Mining Chamber
Contact:	Ing. Sergio Almazán
Position:	General Director
Address:	Sierra Vertientes No 369 Col. Lomas de Chapultepec, Del. Miguel Hidalgo México, D.F. C.P. 11000
Phone:	(52 55) 5540 6788 and (52 55) 5540 6789
Fax:	(52 55) 5540 6061
Email:	1camimex@prodigy.net.mx
Website:	www.camimex.org.mx
Mandate:	Represents private mining companies in Mexico, discussing almost all issues related to the industry and reporting policy positions to federal government.
Confederación de Camáras Industriales de los Estados Unidos Mexicanos (CONCAMIN) / Confederation of Mexican Industrial Chambers
Address:	Manuel Ma. Contreras No. 133, 8th Floor Col. Cuauhtemoc México, D.F. C.P. 06500
Phone:	(52 55) 5140 7800 ext. 19
Fax:	(52 55) 5140 7831
Email:	concamin@concamin.org.mx
Website:	www.concamin.org.mx
Federación Nacional de Asociaciones de Mineros, Medianos y Pequeños, A.C. (FENAMPAC) / National Federation of Associations of Small and Medium Mining Companies
Contact:	Ing. Omar Zaragoza Hernández Ramos
Position:	President
Address:	Blvd. Ávila Camacho No 2247, Desp. "A" 33, 2 Piso Plaza de la Colina Tlanepantla, Estado de México C.P. 54080
Phone:	(52 55) 5343 4683
Fax:	(52 55) 5361 6968
Email:	cermin_mx@prodigy.com.mx
Website:	N/A
Mandate:	Represents smaller companies in key areas of interest.

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Canadian Embassy in Mexico City. Mexico Mining Market Report. October 2001.

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Castellano Gutierrez, Angeles. "Manos a las obras." Expansion, January 17 - February 5, 2007, p.54-59.

Cevallos, Diego. "Mexican Workers Buried by Negligence and Impunity." Geneva Human Rights Tribune. February 20, 2007. http://www.humanrightsgeneva.info/article.php3?id_article=1173

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Economic News: Mexico. The Conference Board. February 22, 2007. http://www.conference-board.org/economics/pressView.cfm?press_ID=3064

"Foreign Investment in Mexico Rises, Misses Target." Reuters. February 21, 2007. http://www.reuters.com/article/economicNews/idUSN2131985420070221

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MBendi Industry (Sector) Profile for Mexico: Mining including economic overview. MBendi: Information for Africa. February 22, 2007. http://www.mbendi.co.za/indy/ming/am/mx/p0005.htm

Mexico International Reserves 1995-2006. Latin Focus. January 22, 2006. http://www.latin-focus.com/latinfocus/countries/mexico/mexresv.htm Mexican Economic and Sociopolitical Studies 2006. Banamex. February 8, 2006. http://www.banamex.com/eng/esem/index.html

Mining in Mexico. Nevada Pacific Gold Ltd. February 26, 2007. http://nevadapacificgold.com/s/MininginMexico.asp

Mining to Mexico - For Australian Exporters. AusTrade, Government of Australia. March 29, 2007. http://www.austrade.gov.au/Mining-to-Mexico

Oancea, Dan. "Mining in Mexico: State of the Industry Review". InfoMine.com. July 2006. http://www.infomine.com

Patterson, Kelly. "Canadian mining firms agree to clean up global act." Edmonton Journal, March 29, 2007. http://www.canada.com/edmontonjournal/news/story.html?id=c6ce74ba-fd26-43cf-9d25-89f6cee456c9&k=40282

Rheade, John and Robin Bhar. "Japanese Precious Metals Imports Robust." Oando FXTrade. March 29, 2007. http://fxtrade.oanda.com/resources/ubsnews/newscontent/132513.shtml

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ⁱ MBendi Industry (Sector) Profile for Mexico: Mining including economic overview. MBendi: Information for Africa. February 22, 2007. http://www.mbendi.co.za/indy/ming/am/mx/p0005.htm

ⁱⁱ Source: The World Factbook, Central Intelligence Agency, United States of America. https://www.cia.gov/cia/publications/factbook/geos/mx.html. February 22, 2007.

ⁱⁱⁱ Canadian Embassy in Mexico City. Market Brief: The Mining Market in Mexico. March 2006.

^iv MexiData. "Good Times Foreseen For Mexican Stock Exchange." http://www.mexidata.info/id1192.html. February 22, 2007.

^v Source: The Conference Board. "Economic News: Mexico." http://www.conferenceboard.org/economics/pressView.cfm?press_ID=3064. February 22, 2007.

^vi Source: Latin Focus: Mexico International Reserves 1995-2006. http://www.latinfocus.com/latinfocus/countries/mexico/mexresv.htm. January 22, 2007.

^vii Source: Dow Jones Newswire. http://www.fxstreet.com/news/forexnews/article.aspx?StoryId=65cf0c9c-3f80-4aa5-a7df-e54bdf639a8d. February 22, 2007.

^viii Source: Marla Dickerson, "Mexico's economy loses steam." http://www.latimes.com/business/la-fi-mexico17feb17,0,3975830.story?coll=la-homebusiness. February 17, 2007.

^ix Source: Reuters. http://www.reuters.com/article/economicNews/idUSN2131985420070221. February 22, 2007.

^x Source: Angeles Castellano Gutierrez. "Manos a las obras." Expansion, January 17 - February 5, 2007, p.54-59.

^xi World Factbook - Mexico, The. United States Central Intelligence Agency. February 22, 2007. https://www.cia.gov/cia/publications/factbook/geos/mx.html

^xii World Factbook - Mexico, The. United States Central Intelligence Agency. February 22, 2007. https://www.cia.gov/cia/publications/factbook/geos/mx.html

^xiii World Population Prospects 2006. United Nations Department of Economic and Social Affairs, Population Division. January 2007. http://www.un.org/esa/population.htm

^xiv Mexican Economic and Sociopolitical Studies 2006. Banamex. February 8, 2006. http://www.banamex.com/eng/esem/index.html

^xv Empresas Registradas. Sistema de Informacion Empresarial Mexico. January 30, 2007. http://www.siem.gob.mx/portalsiem/

^xvi Mining to Mexico - For Australian Exporters. AusTrade, Government of Australia. March 29, 2007. http://www.austrade.gov.au/Mining-to-Mexico

^xvii Mining to Mexico - For Australian Exporters. AusTrade, Government of Australia. March 29, 2007. http://www.austrade.gov.au/Mining-to-Mexico

^xviii "Why Mexico?" Canadian Ministry of Economy. The NAFTA Office of Mexico in Canada. March 5, 2007. http://www.nafta-mexico.org

^xix "Why Mexico?" Canadian Ministry of Economy. The NAFTA Office of Mexico in Canada. March 5, 2007. http://www.nafta-mexico.org

^xx Oancea, Dan. "Mining in Mexico: State of the Industry Review". InfoMine.com. July 2006. http://www.infomine.com

^xxi MBendi Industry (Sector) Profile for Mexico: Mining including economic overview. MBendi: Information for Africa. February 22, 2007. http://www.mbendi.co.za/indy/ming/am/mx/p0005.htm

^xxii Patterson, Kelly. "Canadian mining firms agree to clean up global act." Edmonton Journal, March 29, 2007. http://www.canada.com/edmontonjournal/news/story.html?id=c6ce74ba-fd26-43cf-9d25-89f6cee456c9&k=40282

^xxiii Cevallos, Diego. "Mexican Workers Buried by Negligence and Impunity." Geneva Human Rights Tribune. February 20, 2007. http://www.humanrightsgeneva.info/article.php3?id_article=1173

^xxiv Sherman, Jerome L. "Mexico's Mine Crisis: Tiny coal mines escape inspections." Post-Gazette Online. September 11, 2006. http://www.postgazette.com/pg/06254/720848-357.stm

^xxv World Factbook - World, The. United States Central Intelligence Agency. March 31, 2007. https://www.cia.gov/cia/publications/factbook/geos/xx.html

^xxvi Silver as an Investment. Wikipedia (cited entry). March 31, 2007. http://en.wikipedia.org/wiki/Silver_as_an_investment

^xxvii Gold as an Investment. Wikipedia (cited entry). March 31, 2007. http://en.wikipedia.org/wiki/Gold_as_an_investment

^xxviii MBendi Industry (Sector) Profile for Mexico: Mining including economic overview. MBendi: Information for Africa. February 22, 2007. http://www.mbendi.co.za/indy/ming/am/mx/p0005.htm

^xxix Mining in Mexico. Nevada Pacific Gold Ltd. February 26, 2007. http://nevadapacificgold.com/s/MininginMexico.asp

^xxx Mining in Mexico. Nevada Pacific Gold Ltd. February 26, 2007. http://nevadapacificgold.com/s/MininginMexico.asp

^xxxi Canadian Embassy in Mexico City. Market Brief: The Mining Market in Mexico. March 2006.

^xxxii Mining in Mexico. Nevada Pacific Gold Ltd. February 26, 2007. http://nevadapacificgold.com/s/MininginMexico.asp

^xxxiii Oancea, Dan. "Mining in Mexico: State of the Industry Review". InfoMine.com. July 2006. http://www.infomine.com

^xxxiv Daniel, Frank Jack and Monica Medel. "Mexico Penoles sees silver output rising." March 21, 2007. Reuters. http://www.reuters.com/article/LatinAmericanInvestment0/idUSN2130531120070321

^xxxv Reade, John and Robin Bhar. "Japanese Precious Metals Imports Robust." Oando FXTrade. March 29, 2007. http://fxtrade.oanda.com/resources/ubsnews/newscontent/132513.shtml

^xxxvi Canadian Embassy in Mexico City. Market Brief: The Mining Market in Mexico. March 2006.

^xxxvii Canadian Embassy in Mexico City. Market Brief: The Mining Market in Mexico. March 2006.

^xxxviii Canadian Embassy in Mexico City. Market Brief: The Mining Market in Mexico. March 2006.