|
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. The law permits up to 100 percent private ownership in equity exploration, development and production of mineral substances (Source: USGS, The Mineral Industry of Mexico 2004, by Ivette E. Torres, 2005).
Foreign owned corporations are subject to the same laws as local companies as per the NAFTA. Hellix has set up a subsidiary company Minas de la Sierra Madre, S.A. de C.V. to hold the optioned Mexican properties.
There is no restriction on inflow or outflow of capital and investment transactions (Source: US Department of Commerce, 1998).
Mexico is the 6th best place in the world to mine according to the 2006 Fraser Institute Survey.
Mexico is one of the world's top silver producers (2004-13% of total worldwide), and the fifth largest producer of lead and zinc. In 2004 Mexico's total metal production accounted for almost US$2.89 billion. Durango State is one of the main silver/gold producing states.
Some of the world's largest mining companies have operations in Mexico including Newmont Mining Corp. and Goldcorp.
Mexico encourages mining exploration and development. It has favorable mining legislation including no limits on concession surface area, and a fifty year renewable term on exploitation concessions. Modern techniques are just now being used by foreign explorers to build upon what the Spaniards discovered many years earlier. |