Latin America

Mexico

The Energy Reform law of Mexico was instituted in 2012 and opened the country to outside financial investment in the petroleum and natural gas industry.  Prior to 1936 the country had been open to external investment.   Bidding for potential leases began with off shore areas and will proceed landward.  Data packages are available for a price before bidding; however, the external industry has very little knowledge of Mexican geology with respect to hydrocarbon resources.  Thus, part of this initiative by CEGS is to provide access to some of this knowledge.  Accompanying this are pdf s of relevant literature and links to more. 

The areas opened for bidding will progress northward, with Chihuahua being later.   PEMEX drilled 29 tests in Chihuahua before they abandoned the state in 1985. Some information on those holes are presented, along with information on holes in adjacent New Mexico.  Very favorable features in Chihuahua are the Mesozoic Chihuahua trough, and the Paleozoic Pedregosa and Proto Pedregosa basins.  A negative feature is the superimposition of the young Rio Grande Rift over a portion of those areas.  Immediately to the east of Chihuahua is the prolific Delaware Basin in west Texas, which is a subset of the Permian Basin, which produces 25% of all United States oil, and these basins are undergoing a revival. Why not Chihuahua?  Preliminary estimates outline significant gas resources in eastern Chihuahua.
 

-          A proposal for Integrated Mine Mill Agricultural Complexes to enhance project Economics in Chihuahua Desert.

-          Assessment of Unconventional Oil and Gas Resources in Northeast Mexico 2014. National and Global Petroleum Assessment.

-          Energy Exploration in Mexico. American Energy Partners, 2015.

-          Formaciones del Sistema Cretacico. Mena 1994

-          Key Oil Tests and Stratigraphic Sections in Southwest New Mexico. New Mexico Bureau of Mines and Mineral Resources.

-          Magmatic Evolution of the Gulf of California Rift. Michael Sawlan.

-          Map for Petroleum Tests showing the 30 wells in Chihuahua and SW New Mexico.

-          Mesozoic Stratigraphy of Northeastern Chihuahua Mexico. Diego Cordoba

-          Mexico unlikely to tap its Eagle Ford Shale. Emily Pickrell, 2013.

-          Oil and Gas Exploration Wells in Southwestern New Mexico. Sam Thompson III, 1982.

-          Pliocene Holocene Rifting and Associated Volcanism in Southwest Mexico.

-          Stratigraphic Column associated to the Map with wells.

-          Stratigraphic section of oil tests in Chihuahua, PEMEX.

-          Terranes of Peninsular California and Adjacent Sonora. Gordon Gastil.

-          The Opening of the Southern Gulf of California. Mitchell Lyle Gordon, E. Ness

 

Peru.

 

Peru, Great Mining Country

 

Mining Potential

Peru, a country of 31.5 million people, is one of the Latin America’s fastest-growing economies. It has rich deposits of copper, gold, silver, lead, zinc natural gas and petroleum. Abundant mineral resources are found mainly in the mountainous areas. Peru is considered one of the top ten richest mineral countries in the world. Currently, it is the second producer of copper and stands among the top four producers for silver, lead, zinc and molybdenum the world

Investment

The success of Peru’s mining sector stems not only from an abundance of natural resources but also because the Peruvian government guarantees foreign investors legal stability on income tax regulations and dividend distributions. Peruvian laws, regulations, and practices do not discriminate between national and foreign companies. Accordingly, national treatment is offered to foreign investors.

Selecting Peru as an early target market offers a long term opportunity for growing your international mining strategy.

It is estimated that Peru has 200 operating mines and a pile of major projects waiting to be developed worth $ 46.4 billion. China is the largest foreign investor, followed by United States, Canada and Australia

Peru has an excellent geological potential with numerous mineralized belts and mineral provinces, a wide variety of world class ore deposits and has an excellent geographical location with easy access to Asia and North American markets. It is that Peru has the capacity to double or triple its current of minerals output specially in base metals.

Social

As in many developing countries, achieving a social license to operate is the single most important challenge that the mining industry faces in Peru. In recent years Peru has seen a number highly publicized mega projects being postponed over environmental or community concerns, strikes and anti-mining protests, including the US$ 4.8 billion Conga project, Tia Maria (SPCC), Rio Blanco (Zijin), Cañariaco (Candente Copper).

Mining Projects Pipeline

Mining investment over the period 2016 – 2021 is estimated by Peru’s Mininstry of Energy and Mines to be $ 46.4 billion. About $ 28.3 billion (60.9%) will be invested in copper projects, with iron ore (11.4%) and gold (4.16%) set for much of the rest. The following figure and chart show which are the projects involved, distinguishing between “expansions” of exixting operations; projects under construction for which “investment is confirmed”; projects “ for which feasibility studies have been carried out” and “exploration project”

 

Sources and important websites

·         Peru’s mining & metals investment guide 2017/2018      

http://www.bergbau-peru.com/fileadmin/ahk_peru_bergbau/PDF

·         Geological, Mining and Metallurgical Institute – INGEMMET

·         Geological Society of Peru

·         Ministry of Labor and Employment Promotion – MTPE

·         Institute of Peruvian Mining Engineers

·         Ministry of Energy and Mines (Peru)