Grupo México

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Grupo México S.A.B. de C.V.
Type Sociedad Anónima Bursátil de Capital Variable
Traded as BMV: GMEXICOB
Industry Mining, Logistics
Founded 1978
Headquarters Mexico City, México
Key people Germán Larrea Mota-Velasco, (Chairman & CEO)
Products Iron Ore, Copper, Railway transport
Revenue Decrease US$ 10.1 billion (2012) [1]
Net income Decrease US$ 2.3 billion (2012) [1]
Employees 500
Website www.gmexico.com

Grupo México (BMV: GMEXICOB) is the largest mining corporation in Mexico and the third largest copper producer in the world.

Ferrocarril Mexicano (Ferromex), the company's rail transport division, operates the nation's largest rail fleet.

History[edit]

The company was founded by Raul Antonio Escobedo and Larrea Mota Velasco in 1988. After the government of Carlos Salinas declared the state mining company bankrupt, Larrea purchased key Mexican copper mines in Cananea and Nacozari (cities in the state of Sonora). He also purchased numerous other mining sites, including coal mines in the state of Coahuila. By 2000, Grupo México was responsible for 87.5 percent of Mexico's copper production and is the world's third-largest copper producer in the world.[1]

Grupo México has been in continual conflict with Local 65, the Cananea branch of the Mexican Mine Workers' Union (SNTMMSRM). During miners' strikes in January 2003 and October 2004, Grupo México responded with threats to close the Cananea mines. [2]

In 2004, Grupo México has also purchased a controlling interest in the Southern Peru Copper Corporation. [3] Grupo Mexico acquired 54.2% equity interest in Southern Peru Copper Corporation from ASARCO LLC, a mining company operating in the United States. The SPCC equity sale is subject to a litigation between Grupo Mexico and ASARCO pending in the U.S. District Court for the Southern District of Texas under District Court Judge Andrew Hanen. As of September 2009, ASARCO was the focus of a bidding war begun in May 2008 between its own parent company Grupo México and India-based Sterlite Industries. On August 31, 2009, U.S. Bankruptcy Judge Richard Schmidt recommended that U.S. District Judge Andrew Hanen accept Grupo México's $2.5 billion bid for ASARCO as it prepares to come out of bankruptcy.

Pasta de Conchos mine disaster[edit]

On February 19, 2006, an explosion occurred in a coal mine in San Juan de Sabinas, Coahuila, that is owned by Grupo México. It was reported that mine workers had gone on strike against Grupo México at least 14 times, "not only for salary increases… but because of its constant refusal to review security and health measures." Grupo México said that they, in conjunction with the mining union, signed a certificate on February 7, 2006 declaring the mine safe.[2]

Although the mining operations of a coal deposit is always a risky business, due to the possibility of huge gas concentrations, there are certain theories that indicate the mine has an important lack of safety rules, very similar to the problem presented in the Sago Mine disaster in West Virginia with the accident that caused death of 12 miners on January 2, 2006. [4]

After the successful rescue of 33 trapped miners in October 2010 in Copiapó, Chile, the case gained popularity again, and many people including bishop Raúl Vera demanded that the case be reopened. Grupo México has not responded.[3]

Rail Operations[edit]

Grupo Ferroviario Mexicano, S.A. de C.V.[edit]

Runs Mexico’s largest and most profitable railroad with near 6,000 miles of tracks and 15,000 carloads, transporting over 40% of all the railroad cargo of the country. GMEXICO acquired the rail concession from the Mexican federal government for 100 years in 1998. GMEXICO owns 74% and Union Pacific 26% of the company. The railroad, known as FERROMEX, has the largest coverage of the nation’s railway system. The railroad system connects the main cities in the country, where 70% of industrial production is created and services five land ports on the border with USA, four seaports on the Pacific Ocean and two on the Gulf of Mexico.

Intermodal México, S.A. de C.V.[edit]

Operates since November 2001. Its objective is to develop and provide multi-modal services and logistics for load transportation. For such purposes it has constructed facilities in Guadalajara, Monterrey, Torreón, Silao, Saltillo and is in the process of constructing several other facilities in major cities of central and Northern Mexico.

Texas Pacifico, Inc.[edit]

Holds and operates the Texas Pacifico railroad in the United States that interconnects the border point Ojinaga, ChihuahuaPresidio, Texas with the city of Fort Worth, Texas.

FERROSUR[edit]

On November 25, 2005, the railroad division acquired the company Ferrosur, creating a monopoly over the industry. This Transaction was duly notified to the Mexican Antitrust Commission.

Notes[edit]

  1. ^ US Geological Survey; Gillian O'Connor, "LatAm copper giants want place on global stage," Financial Times, 24 August 2000.
  2. ^ "Grupo Mexico Threatens to Shut Down Cananea if Strike Continues," Engineering and Mining Journal, Vol. 204, No. 4, February 2003, pages 14–15; "Workers Strike at Mexican Copper Mine," Associated Press, 15 October 2004.
  3. ^ Sara Silver, "Approval expected for Grupo Mexico/ S Peru Copper," Financial Times, 23 October 2004.
  4. ^ "Mexican mine blast traps workers," BBC News, 20 February 2006. Link to article

References[edit]

  1. ^ a b GRUPO MEXICO SAB DE CV-SER B (GMEXICOB:Mexico): Financial Statements - Businessweek. Investing.businessweek.com. Retrieved on 2013-07-12.
  2. ^ Search for Mexican miners suspended Diario, Ciudad Juárez, February 25, 2006.
  3. ^ Chilean rescue revives anger in Mexico over 2006 miners' tragedy, Monsters and Critics, October 14, 2010.

External links[edit]