|Sociedad Anónima Bursátil de Capital Variable|
|Traded as||BMV: GMEXICO B|
|Headquarters||Mexico City, México|
|Germán Larrea Mota-Velasco, (Chairman & CEO)|
|Products||Iron Ore, Copper, Railway transport|
Number of employees
Grupo México is the largest mining corporation in Mexico and the third largest copper producer in the world through ASARCO.
Mining is the extraction of valuable minerals or other geological materials from the earth, usually from an ore body, lode, vein, seam, reef or placer deposit. These deposits form a mineralized package that is of economic interest to the miner.
Mexico, officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatemala, Belize, and the Caribbean Sea; and to the east by the Gulf of Mexico. Covering almost 2,000,000 square kilometres (770,000 sq mi), the nation is the fifth largest country in the Americas by total area and the 13th largest independent state in the world. With an estimated population of over 120 million people, the country is the eleventh most populous state and the most populous Spanish-speaking state in the world, while being the second most populous nation in Latin America after Brazil. Mexico is a federation comprising 31 states and Mexico City, a special federal entity that is also the capital city and its most populous city. Other metropolises in the state include Guadalajara, Monterrey, Puebla, Toluca, Tijuana and León.
Copper is a chemical element with symbol Cu and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkish-orange color. Copper is used as a conductor of heat and electricity, as a building material, and as a constituent of various metal alloys, such as sterling silver used in jewelry, cupronickel used to make marine hardware and coins, and constantan used in strain gauges and thermocouples for temperature measurement.
Ferrocarril Mexicano (Ferromex), the company's rail transport division, operates the nation's largest rail fleet.
The company was founded by Raul Antonio Escobedo and Larrea Mota Velasco in 1978. After the government of Carlos Salinas declared the state mining company bankrupt, Larrea purchased key Mexican copper mines in Cananea and Nacozari (cities in the state of Sonora). He also purchased numerous other mining sites, including coal mines in the state of Coahuila. By 2000, Grupo México was responsible for 87.5 percent of Mexico's copper production and is the world's third-largest copper producer in the world.
Cananea is a city in the northern Mexican state of Sonora, Northwestern Mexico. It is the seat of the Municipality of Cananea, on the U.S−Mexico border.
Sonora, officially Estado Libre y Soberano de Sonora, is one of 31 states that, with Mexico City, comprise the 32 federal entities of United Mexican States. It is divided into 72 municipalities; the capital city is Hermosillo. Sonora is bordered by the states of Chihuahua to the east, Baja California to the northwest and Sinaloa to the south. To the north, it shares the U.S.–Mexico border with the states of Arizona and New Mexico, and on the west has a significant share of the coastline of the Gulf of California.
Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements; chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed if dead plant matter decays into peat and over millions of years the heat and pressure of deep burial converts the peat into coal. Vast deposits of coal originates in former wetlands—called coal forests—that covered much of the Earth's tropical land areas during the late Carboniferous (Pennsylvanian) and Permian times.
Grupo México has been in continual conflict with Local 65, the Cananea branch of the Mexican Mine Workers' Union (SNTMMSRM). During miners' strikes in January 2003 and October 2004, Grupo México responded with threats to close the Cananea mines.
The National Union of Mine, Metal, Steel and Allied Workers of the Mexican Republic is a union of coal and copper miners, as well as iron and steel workers, in Mexico. It was founded in 1934, and in 1936 it became an affiliate of the newly formed Confederation of Mexican Workers (CTM).
Strike action, also called labor strike, labour strike, or simply strike, is a work stoppage, caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became common during the Industrial Revolution, when mass labor became important in factories and mines. In most countries, strike actions were quickly made illegal, as factory owners had far more power than workers. Most Western countries partially legalized striking in the late 19th or early 20th centuries.
In 2004, Grupo México has also purchased a controlling interest in the Southern Peru Copper Corporation. Grupo Mexico acquired 54.2% equity interest in Southern Peru Copper Corporation from ASARCO LLC, a mining company operating in the United States. The SPCC equity sale is subject to a litigation between Grupo Mexico and ASARCO pending in the U.S. District Court for the Southern District of Texas under District Court Judge Andrew Hanen. As of September 2009, ASARCO was the focus of a bidding war begun in May 2008 between its own parent company Grupo México and India-based Sterlite Industries. On August 31, 2009, U.S. Bankruptcy Judge Richard Schmidt recommended that U.S. District Judge Andrew Hanen accept Grupo México's $2.5 billion bid for ASARCO as it prepares to come out of bankruptcy.
Asarco has been found responsible for environmental pollution at 20 Superfund sites across the U.S. by the Environmental Protection Agency. Those sites are:
Superfund is a United States federal government program designed to fund the cleanup of sites contaminated with hazardous substances and pollutants. Sites managed under this program are referred to as "Superfund" sites. It was established as the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). It authorizes federal natural resource agencies, primarily the Environmental Protection Agency (EPA), states and Native American tribes to recover natural resource damages caused by hazardous substances, though most states have and most often use their own versions of CERCLA. CERCLA created the Agency for Toxic Substances and Disease Registry (ATSDR). The EPA may identify parties responsible for hazardous substances releases to the environment (polluters) and either compel them to clean up the sites, or it may undertake the cleanup on its own using the Superfund and costs recovered from polluters by referring to the U.S. Department of Justice.
The Environmental Protection Agency (EPA) is an independent agency of the United States federal government for environmental protection. President Richard Nixon proposed the establishment of EPA on July 9, 1970 and it began operation on December 2, 1970, after Nixon signed an executive order. The order establishing the EPA was ratified by committee hearings in the House and Senate. The agency is led by its Administrator, who is appointed by the President and approved by Congress. The current Administrator is former Deputy Administrator Andrew R. Wheeler, who had been acting administrator since July 2018. The EPA is not a Cabinet department, but the Administrator is normally given cabinet rank.
On February 19, 2006, an explosion occurred in a coal mine in San Juan de Sabinas, Coahuila, that is owned by Grupo México. It was reported that mine workers had gone on strike against Grupo México at least 14 times, "not only for salary increases… but because of its constant refusal to review security and health measures." Grupo México said that they, in conjunction with the mining union, signed a certificate on February 7, 2006 declaring the mine safe.
Although the mining operations of a coal deposit is always a risky business, due to the possibility of huge gas concentrations, there are certain theories that indicate the mine has an important lack of safety rules, very similar to the problem presented in the Sago Mine disaster in West Virginia with the accident that caused death of 12 miners on January 2, 2006. Union critics of the company openly refer to the incident as a "homicide."
After the successful rescue of 33 trapped miners in October 2010 in Copiapó, Chile, the case gained popularity again, and many people including bishop Raúl Vera demanded that the case be reopened. Grupo México has not responded.
According to the IndustriALL Global Union, as of August 2016, "Ten years after the mining homicide at Pasta de Conchos, Mexico, the government has still not conducted a thorough investigation into the real causes of the disaster, brought those responsible to justice, recovered the bodies or compensated the families of the victims."
On August 6, 2014 40,000 cubic meters of copper sulphate were spilled on Sonora River and Bacanuchi River by Buenavista del Cobre mine. This has been considered the largest environmental spillage in Mexico's history, polluting 7 municipal districts from Sonora state and affecting by October more than 20,000 people. Pollution has been reported to be reaching Arizona. Though a trustfund was created to assist the damaged population, complains about its management and proper ecological cleaning have been expressed.A second spillage, this time sulfur dioxide was reported
Runs Mexico’s largest and most profitable railway with near 9,600 kilometres (6,000 miles) of tracks and 15,000 carloads, transporting over 40% of all the rail cargo of the country. GMEXICO acquired the rail concession from the Mexican federal government for 100 years in 1998. GMEXICO owns 74% and Union Pacific 26% of the company. The railway, known as FERROMEX, has the largest coverage of the nation’s railway system. The rail system connects the main cities in the country, where 70% of industrial production is created and services five land ports on the border with USA, four seaports on the Pacific Ocean and two on the Gulf of Mexico.
Operates since November 2001. Its objective is to develop and provide multi-modal services and logistics for load transportation. For such purposes it has constructed facilities in Guadalajara, Monterrey, Torreón, Silao, Saltillo and is in the process of constructing several other facilities in major cities of central and Northern Mexico.
Holds and operates the Texas Pacifico railroad in the United States that interconnects the border point Ojinaga, Chihuahua – Presidio, Texas with the city of Fort Worth, Texas.
On November 25, 2005, the railroad division acquired the company Ferrosur, creating a monopoly over the industry. This Transaction was duly notified to the Mexican Antitrust Commission.
Ferromex is a private rail consortium that operates the largest railway in Mexico with combined mileage of 7500 miles and is part of the North American Class I railroads.
Phelps Dodge Corporation was an American mining company founded in 1834 as an import-export firm by Anson Greene Phelps and his two sons-in-law William Earle Dodge, Sr. and Daniel James. The latter two ran Phelp, James & Co., the part of the organization based in Liverpool, England. The import-export firm at first exported United States cotton from the Deep South to England, and imported various metals to the US needed for industrialization. With the expansion of the western frontier in North America, the corporation acquired mines and mining companies, including the Copper Queen Mine in Arizona and the Dawson, New Mexico coal mines. It operated its own mines and acquired railroads to carry its products. By the late 19th century, it was known as a mining company.
ASARCO LLC is a mining, smelting, and refining company based in Tucson, Arizona, which mines and processes primarily copper. The company is a subsidiary of Grupo México.
Kennecott Utah Copper LLC (KUC), a division of Rio Tinto Group, is a mining, smelting, and refining company. Its corporate headquarters are located in South Jordan, Utah, USA. Kennecott operates the Bingham Canyon Mine, one of the largest open-pit copper mines in the world in Bingham Canyon, Salt Lake County, Utah. The company was first formed in 1898 as the Boston Consolidated Mining Company. The current corporation was formed in 1989. The mine and associated smelter produce 1% of the world's copper.
Peñoles is a subsidiary company owned by Grupo BAL. Peñoles is the second largest Mexican mining company, the first Mexican producer of gold, zinc and lead and the world leader in silver production. Peñoles is a company with active mines within Mexico and with some prospection projects in South America. Holdings includes the Fresnillo Silver Mine / Mina Proaño, the Met-Mex Peñoles metallurgical complex and Química del Rey; a Chemical facility; three operations. Peñoles produces about 80,500,000 troy ounces (2,500,000 kg) of silver and 756,100 troy ounces (23,520 kg) of gold annually. Other metals that the company produces are zinc, lead, copper, bismuth, and cadmium.
Cananea is a municipality in the northern portion of the Mexican state of Sonora, on the U.S. border. Its municipal seat is the city of Cananea, located at.
The Mexico North-Western Railway or Compañía del Ferrocarril Nor-Oeste de México was a railroad that operated in Mexico between Ciudad Juárez and Chihuahua, via Nuevo Casas Grandes in the western portion of the state of Chihuahua. Prior to 1909, it was known as the Rio Grande, Sierra Madre & Pacific Railway. It was built with mostly Canadian capital in order to reach logging and mining operations. Its subsidiary operation, the El Paso and Southwestern Railroad, extended into the USA at El Paso, Texas. In 1954 the railway was merged into the Ferrocarriles Nacionales de México and the El Paso Southern sold to the Southern Pacific railroad. During the latter years of operation (1947-1954), the railway was controlled by tunnel magnate "Subway Sam" Rosoff, who also controlled large lumber interests along the route.
James Stuart Douglas Jr. (1867–1949), popularly known as Rawhide Jimmy, was a Canadian-American businessman and mining executive.
The Cananea strike, also known as the Cananea riot, or the Cananea massacre, took place in the Mexican mining town of Cananea, Sonora, in June 1906. Although the workers were forced to return to their positions with no demand being met, the action was a key event in the general unrest that emerged during the final years of the regime of President Porfirio Díaz and that prefigured the Mexican Revolution of 1910. In the incident twenty-three people died, on both sides, twenty-two were injured, and more than fifty were arrested.
Louis Davidson Ricketts was an American economic geologist, metallurgist, mining engineer and banker who pioneered development of copper mines in the U.S. state of Arizona and the Mexican state of Sonora.
Southern Copper Corporation is a mining company that was founded in 1952. The current incarnation of Southern Copper can be traced to the 2005 acquisition of Mexican copper producer Minera México by Southern Peru Copper Corporation.
The El Paso and Southwestern Railroad was a short-line American railway company which operated in Arizona, New Mexico, and Texas, with line extensions across the international border into Mexico. The railroad was known as the Arizona and South Eastern Railroad from 1888 to 1902.
The Detroit Copper Mining Company was an American copper mining and smelting operation based in Morenci, Arizona. Incorporated in July 1872, it existed as an independent company until 1897, when a controlling interest in the company was purchased by the predecessor of the Phelps Dodge Corporation. It continued to exist as a subsidiary of Phelps Dodge & Co until 1917, when all Phelps Dodge operations in the area were consolidated into the new Phelps Dodge Corporation, Morenci Branch.
Colonel William Cornell Greene was an American businessman who was famous for discovering rich copper reserves in Cananea, Mexico, and for founding the Greene Consolidated Copper Company in 1899. By 1905, Greene was one of the wealthiest businessmen in the world.
The Toquepala mine is a large porphyry copper mine in the Tacna Province, Tacna Department, Peru. The mine is an open-pit mine producing copper, molybdenum, rhenium and silver with minor gold and zinc.
The Bunker Hill Mine and Smelting Complex, was a large smelter located in Kellogg, Idaho, in the Coeur d'Alene Basin. When built, it was the largest smelting facility in the world. It is located in what became known as the Silver Valley of the Coeur d'Alene Basin, an area for a century that was a center of extensive silver and other metal mining and processing. This resulted in extensive contamination of water, land and air, endangering residents including the Coeur d'Alene Tribe, which had traditionally depended on fish from the waterways as part of its subsistence.
Plants for the production of lead are generally referred to as lead smelters. Primary lead production begins with sintering. Concentrated lead ore is fed into a sintering machine with iron, silica, limestone fluxes, coke, soda ash, pyrite, zinc, caustics or pollution control particulates. Smelting uses suitable reducing substances that will combine with those oxidizing elements to free the metal. Reduction is the final, high-temperature step in smelting. It is here that the oxide becomes the elemental metal. A reducing environment pulls the final oxygen atoms from the raw metal.
Silver Bell is a populated place located in the Silver Bell Mountains in Pima County, Arizona. The name "Silver Bell" refers to a more recent ghost town, which was established in 1954 and abandoned in the 1970s. The original town, established in 1904, was named "Silverbell" and abandoned in the early 1930s. Both towns were utilized and later abandoned due to the mining of copper in the area.
The International Smelting and Refining Company was a subsidiary of Anaconda Copper which operated primarily out of the International Smelter near Tooele, Utah. The International Smelter began operation in 1910 as a copper producer handling ores from Bingham Canyon and was expanded into a lead smelting operation in 1912. Copper smelting finished at International in 1946, and the lead smelter shut down in January 1972. The closure of the smelter would lead to the associated Tooele Valley Railway to be shut down ten years later in 1982. The company also handled several other Anaconda owned interests. After the shut down of several of the International Smelting sites, environmental reclamation has been performed by Anaconda Copper's successor company ARCO and the EPA Superfund program.