Factors Involved in Building the Guanacevi Project in Mexico

Hibernia de Mexico SA de CV, based in Durango, Durango, Mexico built and put into operation a 700-t/d (770-stpd) agitated cyanide leach plant in Guanacevi, Durango. Plant construction began in March 1993 and operations began in November 1993. Hibernia de Mexico, a wholly owned subsidiary of Hibernia Holdings, Inc., is a privately held Tucson, AZ-based company. The startup procedures described here deal with Mexico's legal, import-export and finance requirements, and labor and security requirements. The 700 t/d (770 stpd) Guanacevi project is located next to the town of Guanacevi. The project is an agitated cyanide leach plant built to process about 2 Mt (2.2 million st) of flotation tailings over its life. The plant is operated by Servicios de Guanacevi, Asociasion en Participacion. It is owned jointly by Hibernia de Mexico and Metalurgica Guanacevi SA de CV. Legal, importation of equipment and financing For a foreign company to operate in the mining industry in Mexico, it must form a Mexican company. A Mexican company presently must be at least 51 % owned by a Mexican entity. The other 49% may be owned by non-Mexicans.