Mining and Steel
Since the opening of their Mexico office, steel company
Vesuvius has raised its profile and expanded its business in
the country. The company, which provides steel makers,
foundries and even oil refineries with materials,
services and technologies that are used
in high-temperature industrial processes, is now working
hard to improve its productivity and expand its business
in Mexico as more private steel companies move into the
"We are one of Vesuvius' lowest cost locations around the
world," says Andres Delfino, Business Unit Manager in
Vesuvius Mexico. "We have taken advantage of being in a place
that has many skilled workers, allowing us to
grow quickly and efficiently. Our goal in the near future
is to attract more business within Mexico as the market
here expands. We want to be seen as one of our company's
According to the 2011 edition of "Ranking of Countries for
Mining Investment" by BEHRE DOLBEAR, Mexico occupies
fifth place worldwide in the lowest risks for mining
table, after Canada, Australia, Chile and the USA.
Mexico is a major supplier of metals including silver,
ranked first in the world, lead (fifth), zinc (eighth),
copper (thirteenth) and gold (fifteenth). Today 279
foreign enterprises are contributing to the investment and
exploration of Mexico's mining sector.
Many new investments are beginning to come to fruition. In
Mexico the mining extraction sector is second in terms
of investment and it sees stable yearly growth.
Mexico is the thirteenth largest producer of crude steel in
the world and the second largest in Latin America with a
production of 18.1 million tonnes in 2010 and an installed
capacity of 22.2 million tonnes. Mexico has considerable
appeal as a steel producer, and factors like receptivity to
foreign investment are encouraging major players in steel
end- use sectors such as automotive and electrical equipment
to establish extensive and sophisticated manufacturing
facilities in Mexico.
The industry's input cost advantage, which includes labour,
electricity and gas, enables it to profitably
and competitively export steel products.
Mexico has major opportunities in mineral exploration.
Mexico has eleven giant deposits of silver, three of
copper, two of molybdenum, five of zinc, one of lead, one
of manganese and one of fluorite. These deposits represent
opportunities for exploration, machinery,
tools, consultancy and new technology.
Companies with expertise in feasibility studies have also
big opportunities in the mining sector in Mexico.
The iron and steel industry in Mexico is experiencing
intellectual challenges. Companies are open to R&D that
can provide the know-how and knowledge in different
fields such as new technologies, composites material, new
applications, demand and price forecasting, among others.
In the next five years, the ironworks sector in Mexico will
invest about US$10,000 million to grow and
diversify their products, replacing imports.
Home supplies such as stoves and refrigerators continue to
grow in demand; therefore materials such as steel
and copper are being required much more.
Source - UKTI