Grupo México is the largest mining company in Mexico and the third largest copper producer in the world.
It has Ferrocarril Mexicano, the largest multimodal freight rail service in Mexico, and an infrastructure division with great growth potential. The company has been listed on the Mexican Stock Exchange since 1966 and is one of the most stock issuing companies.
Its main divisions are:
- Mining Division
- Transportation Division
- Infrastructure Division
Since its formation, more than 70 years ago, the companies that have formed Grupo México have shown great interest in conservation of the environment as well as social and economic development of the communities surrounding its operation center. That is why their companies have remained at the forefront of technology making renovations and permanent adjustments that allow the sustainability of their operations.
Grupo México began operations in 1942 carrying out construction activities through Mexican Construction Company, becoming one of the most important construction companies in the country.
In 1965, Asarco Mexicana was formed with 51% of Mexican shares, changing its name in 1975 to Industrial Minera México (IMMSA).
In 1978, Grupo Industrial Minera México was created and entered the Mexican Stock Exchange. In 1980 the construction of the zinc refinery began in San Luis Potosí, Mexico, with a production capacity of 106,000 metric tons per year, which began its operations in 1982.
In 1988, 95% of Mexicana de Cobre was acquired through public bidding by the Mexican Federal Government.
In 1989, the expansion of the Mexicana de Cobre Concentrator Plant was completed, increasing its capacity from 70,000 to 90,000 metric tons of ore per day.
In 1990, the Cananea mine in Sonora was acquired by a consortium formed by Mexicana de Cobre (76%) and Unión de Acec Miniere (24%) through a public tender, in the amount of $525 million dollars, with the commitment of investing an additional $400 million dollars.
In 1994 Grupo México was created and listed on the Mexican Stock Exchange, replacing GIMMEX.
In 1995, the new metallurgical plant, Complejo La Caridad, was built in Sonora, Mexico. In 1997, the construction of the Lieutenant Reactor completed the smelter’s expansion from 180,000 to 330,000 metric tons of anodic copper per year. The Concentrated Plant of the Cananea Complex, Sonora, was also expanded, with an increase of 60,000 to 80,000 metric tons of minerals per day.
In 1997, Grupo México acquired a 24% stake in the “Acec Unión Miniere” of the Cananea Complex, Sonora, due to the termination of the commercial copper concentrate contract.
It also acquires, through public bidding and in association with Union-Pacific and ICA, the concession of the Pacific North rail lines, of the Pacific Chihuahua and the Nogales-Cananea short line, and the Grupo Ferroviario Mexicano (GFM) was created with its subsidiary Ferrocarril Mexicano, SA of C.V. (Ferromex).
In 1998, the Wire Rod Plant was built in the Caridad Complex, Sonora, with a production capacity of 150,000 metric tons per year.
A new Precious Metals Refinery with a production capacity of 15 million ounces of silver and 100 thousand ounces of gold per year was built in the same Complex.
In 1999, Grupo México became the second largest copper reserves company, the third largest copper producer in the world and the fourth largest silver producer; as a result of the acquisition of the ordinary equity interest of Asarco Inc. controlled by Southern Peru Copper Corporation, a Delaware company listed on the NYSE.
In 2000, the Concentrated Plant in Cuajone, Peru was expanded and modernized, increasing its production from 60,000 to 100,000 metric tons of minerals per day.
In 2001, the “Toratá” project was consolidated in Peru, achieving the optimization and expansion of the Cuajone mine, increasing its mineral reserves from 10 to 40 years.
In 2002, the “ESDE” plant was expanded in Cananea, Sonora, increasing production from 33,000 to 55,000 metric tons of cathodes per year. In 2003, the expansion of the Toquepala Concentrated Plant, Peru, was achieved, increasing production from 40,000 to 600,000 metric tons of minerals per day.
In 2004 modernization work was carried out in Ilo, Peru, achieving a capacity of 1.2 million tons of concentrate per year, which complies with international and Peruvian environmental regulations. This foundry came into operation in 2007.
In 2007, Ferromex concluded with an aggressive program to renovate its motor plant through the acquisition of 100 GE locomotives and other railway equipment, as well as the modification of some roads and lanes. Such mediations resulted in higher train speeds, safety improvements and a reduction in diesel consumption.
In December 2009, Grupo México successfully completed the reorganization of Asarco, consolidating it again as a wholly free subsidiary of environmental liabilities and contingencies.
At the beginning of 2010, the Board of Directors of Grupo México approved an investment program of $3.91 million for the following 3 years, which would determine a growth in copper production capacity of 50% and 35% of molybdenum.
Grupo México is a holding company whose main operations consist of mining, railways and infrastructure based in Mexico, D.F. Mining DivisionGrupo México operates large, long-lived, geographically diverse mining complexes (USA, Mexico and Peru), and with significant proven and probable reserves of copper and molybdenum. It has several expansion and growth projects in the copper industry. Some of the important assets include the Buenavista mining complex, which has the largest copper reserve in the world; as well as Toquepala and Cuajone in Peru. Currently, there are explorations in Mexico, Peru, and Chile.
Ferromex started operations in 1998 and is currently the largest rail operator in Mexico, both in terms of coverage and fleet size. Ferromex has 5 border crossing options and communication with 6 important ports: 4 in the Pacific and 2 in the Gulf of Mexico. Infrastructure Division GMéxico began its operations carrying out construction activities, a branch in which it has continued active since 1942. Throughout its history, it has participated in public and private infrastructure projects, construction of hydroelectric dams and storage, roads, railroad projects, mining, among others.
The Corporate Government is the set of principles and rules that regulate the operation of the company. Good Corporate Governance manages to protect the interests of the company and shareholders, create value, and efficiently use the resources of the company. It is very important for us, as a public company that is listed on the Mexican Stock Exchange, to generate value for shareholders. That is why through our financial reports, telephone conferences, relevant events and a management team committed to investors we managed to maintain transparency in our information. Some of our principles contemplated by the Corporate Government are: Commit to the fair treatment of all shareholders, both minority and foreign.Report on the relevant matters of the company, including the financial situation, performance, shareholding, administrative team, and news that influence the behavior of the action. Maintain a strategic guide for the company, as well as effective monitoring of the management team by the Board of Directors and responsibilities with shareholders.
These are the rules that establish and regulate the object, organization, faculties, operations and operation of Grupo México and its subsidiaries.
They represent the legal basis for the existence and operations of the same.
The Statutes are integrated by the following chapters:
- Name, corporate purpose, duration, address, and nationality of the Company Share
- Capital and shares
- Cancellation of the registration of shares of the company in the National Securities Registry
- Increases and decreases in capital
- Shareholders’ meetings and the rights of the shareholders
- Administration of the Company
- Earnings and loses
- Dissolution and liquidation
- Applicable legislation and jurisdiction
BOARD OF DIRECTORS
The maximum management body of Grupo México; is responsible for establishing and safeguarding the viability of the corporate strategy. It is composed of a maximum of 21 directors appointed by the General Assembly of Shareholders, of which at least 25% must be independent.
Is the corporate governance body composed of a minimum of three independent directors, whose responsibility is in financial matters and internal control, as well as to oversee the management, conduct and execution of Grupo México’s businesses, considering the relevance that they have in the financial, administrative and legal situation of Grupo México.
SOCIAL RESPONSIBILITY, ETHICS AND VALUES
Its purpose is to provide ethical guidelines under which the work activity and the daily behavior of the personnel should be governed, in order to achieve an environment of harmony and appropriate behavior within Grupo México and among its employees.The management team of Grupo México is committed to generating value for its shareholders, employees, and the locations where it operates. With this clear mission, the company has experienced professionals in different lines of business, which allows us to seek international leadership in each of the industries in which we participate.
Mining is Grupo México’s main enterprise, which has allowed the development and creation of other companies, turning these actions into detonators of development and the well-being for their people.
Currently, the mining division represents the majority of their sales and is integrated by Southern Copper Corporation, which includes Minera Mexico and Southern Peru, as well as Asarco in the United States. The mining division of Grupo México has a prolific past. Since its inception it has been a proud Mexican company, starting with Industrial Minera Mexico, Mexicana de Cobre and Buenavista del Cobre. They are also proud to have Southern Peru and Asarco as part of their group of companies. These acquisitions position them as a global company, with high technical quality and production efficiency.
The present and future that they’re forging based on Sustainable Development means that they carry out all their operations under a strict respect for the environment and seeking the progress and development of their people.