Grupo México plans to invest US $5.746 billion by 2020 to power mining and railroads

The industrial conglomerate Grupo México is planning to invest US $5.746 billion until 2020, to boost its business in the mining and rail sectors.

The company explained, in its financial report sent to the Mexican Stock Exchange (BMV), that they estimate to invest US $2.596 billion this year, an amount that represents 53.9% more than what was destined in 2018.

Of this total amount, US $ 1.827 billion will be destined for the mining sector, which is 44.4% more than what was invested last year.

The investment planned for 2019, the Mexican firm added, will be directed to projects in mining-metallurgical units with state-of-the-art technology in investment grade countries such as Mexico, Peru, the United States and Spain.

Within the investment pallet, Grupo México plans to allocate US $432 million for the transport sector (16.1% more than in 2018) and US $337 million for infrastructure, pending a better operation and income for its energy assets.

The company also informed that by 2020 they will be injecting another US $3.150 billion, but without detailing the operations.

The mining giant, one of the largest copper producers in the world, reported a profit of US $74.7 million in the fourth quarter of 2018, compared to US $110.355 million in the same period of 2017.

In the same period, it had an operating cash flow (EBITDA) of US $1.160 billion, 14% lower than that reported in the same period a year earlier.

Grupo México’s revenues totaled US $2.567 billion in the same period, down from US $2.737 billion in the same period of the previous year.

The company said that this was due to a lower value of copper added to a limited production of this metal, which only rose 3.8% due to lower activity at its Asarco mines.

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