Mexico's mining output slips despite zinc surge

Mining output in Mexico fell for the 11th consecutive month in March, with gold slumping while zinc hit a record high.

Overall production was 3.4% lower compared with the same month last year, according to a report by statistics agency Inegi.

Output dipped 2.5% in February and 3.9% the previous month. Mexico last reported a monthly increase in April 2018 (up 2.4%).

Sulfur saw the biggest drop in March, down 35.5% to 27,633t, followed by gold, down 16.1% at 7,822kg (251,477oz), and coke, down 14.0% at 91,846t.

Fluorspar, copper and iron pellet production declined 4.9%, 3.3% and 1.0%, respectively, to 90,811t, 40,963t and 651,683t.

Zinc saw the biggest rise, up 38.0% at 46,812t, the highest monthly figure recorded by Inegi, which began recording production of the metal in 1980.

The rise reflects increasing Q1 output among some of Mexico's top zinc producers.

Industrias Peñoles produced 70,370t of zinc in Q1, up 5.3% from the same period last year, with Southern Copper delivering 59,400t from its Mexican operations, up from 58,200t.

Goldcorp did not report output figures for the Peñasquito gold-silver-lead-zinc mine for the quarter prior to its merger with Newmont Mining, to create Newmont Goldcorp.

Lead production was up 9.8% at 14,577t, with non-coking coal up 6.4% at 600,032t, gypsum by 6.2% at 506,619t and silver up 3.5% at 355,187kg.

Mexico is the world's biggest silver producer and a top 10 miner of gold, copper, lead, zinc and molybdenum.