Australian miners poised for increased success in Mexico

Austrade media release

Friday, 9 November 2007

Australian companies are well placed to make further inroads into the burgeoning Mexican mining market with many of the twelve exhibitors reporting success, after participating at Austrade’s pavilion at Expomin 2007 – Latin America’s largest mining event.

Garry Kennedy, Austrade’s Mexico City-based Trade Commissioner, said Expomin 2007 – the 27th International Mining Congress and Exhibit (October 10-13) held every two years at Veracruz – is Mexico’s largest mining show which attracted more than 400 exhibitors from 12 countries.

“Austrade’s Australia pavilion showcased suppliers of mining equipment and services that included Micromine, Gekko, Intellection, Azzure Minerals, Runge, Acquire, ELPRO, Pr Polymers, Aran, Orica, Maptek, Ryco Hydraulics and the Queensland Government,” Mr Kennedy said.

“While traditional Australian exports such as meat, leather and medicaments (including veterinary) products remain popular with Mexicans, mining and minerals play a significant role in our ongoing success,” Mr Kennedy said.

“Mexico now ranks in the top 12 of 18 different minerals. It also ranks number one and two in the world's production of silver and celestite (strontium sulfate), is second in world of fluorite and fourth in bismuth, arsenic and graphite production.

“Government efforts over the past decade to reinvigorate the Mexican mining sector through liberalised mining laws, regulations and the privatisation of government-owned mines, changes in foreign ownership allowing investors 100 per cent ownership and processing facilities, are bearing fruit,” he said.

Tim Harcourt, Austrade’s Chief Economist, said about 60 per cent of the country's mining activities are open pit and 40 per cent are underground, Mexico is highly prospective.

“Mexico’s mining potential is huge. Two-thirds of the country presents ideal geological conditions for the occurrence of metallic and non-metallic ore deposits of which only 20 per cent have been explored,” Mr Harcourt said.

“With strong demand for productivity improving technology and equipment to enhance the efficiency of existing mines and processing plants, so there’s plenty of potential there.

"This is aided by Australia’s reputation as a quality provider of mining goods and services as well as a major investor, particularly as Australian companies and brands are part of the mining landscape,” he said.

“However, we do everything from the traditional to the cutting edge. We teach Mexican students at our schools and universities but also export software and collaborate on e-learning projects. We sell coal, iron ore and LNG but also provide mining technology and consulting services,” Mr Harcourt said.

“Australia's exports of goods and services to Mexico totalled $880 million for the 2007 financial year, with resource exports valued at $400 million,” he said.

Mr Harcourt added the double taxation agreement, a bilateral investment protection agreement and memorandums of understanding on agriculture, education, energy, ICT, and mining were helping to bring both economies together.

ENDS

Media contact

Sarkis Khoury
Senior Media Adviser
Tel: +61 2 9390 2118
Mob: +61 2 414 401 072
Email: sarkis.khoury@austrade.gov.au

For further news and information from the Australian Trade Commission (Austrade) visit www.austrade.gov.au//mediacentre.