GMex may start El Arco construction by year-end

Grupo México (GMex) may start construction of its El Arco copper-gold project in Mexico by the end of the year, despite opposition from environmental groups, local daily Reforma reported.

Preparation is well-advanced and the project will be protected against possible actions by environmental NGOs opposed to its development, Víctor Nuza Montaño, mining director for Baja California state, was quoted as saying.

El Arco has reserves of more than 1.50Bt at grades of 0.42% copper and 0.14g/t gold, and is expected to produce 190,000t/y copper and 105,000oz/y gold once completed, according to GMex's 2013 annual report.

An engineering study and further exploration work is planned in 2014, according to information on the website of US-based GMex subsidiary Southern Copper, which operates the project. The company is the biggest copper producer in Mexico and Peru.

Spending on the project stood at US$40.9mn at the end of 2013, including investment in studies, exploration and land acquisitions. A feasibility study was completed in 2010.