Grupo México is a Mexican conglomerate that operates through the following divisions: Mining (Minera Mexico), Transportation (
GMxT), Infrastructure and Fundacion Grupo Mexico.
Its
mining
Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic via ...
Division is the leading
Copper
Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkis ...
producer in
Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
and the third largest
copper
Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkis ...
producer in the world through
ASARCO
Asarco LLC (American Smelting and Refining Company) is a mining, smelting, and refining company based in Tucson, Arizona, which mines and processes primarily copper. The company has been a subsidiary of Grupo México since 1999.
Its three la ...
.
Its transportation division operates the largest rail fleet in México, with 11,000 km of track and more than 800 engines and 26,300 coaches. It interconnects five major inland Mexican cities, five cities along the border with the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
, 13 seaports (5 on the
Pacific Ocean
The Pacific Ocean is the largest and deepest of Earth's five oceanic divisions. It extends from the Arctic Ocean in the north to the Southern Ocean (or, depending on definition, to Antarctica) in the south, and is bounded by the continen ...
, and 8 on the
Gulf of Mexico
The Gulf of Mexico ( es, Golfo de México) is an oceanic basin, ocean basin and a marginal sea of the Atlantic Ocean, largely surrounded by the North American continent. It is bounded on the northeast, north and northwest by the Gulf Coast of ...
).
History
![Grupo Reforma at Mexico City](https://upload.wikimedia.org/wikipedia/commons/0/03/Grupo_Reforma_at_Mexico_City.jpg)
The company was founded by
Raúl Antonio Escobedo and
Larrea Mota Velasco in 1978. After the government of
Carlos Salinas
Carlos Salinas de Gortari CYC DMN (; born 3 April 1948) is a Mexican economist and politician who served as 60th president of Mexico from 1988 to 1994. Affiliated with the Institutional Revolutionary Party (PRI), earlier in his career he wo ...
declared the state mining company bankrupt, Larrea purchased key Mexican copper mines in
Cananea
Cananea is a city in the Mexican state of Sonora, Northwestern Mexico. It is the seat of the Municipality of Cananea, in the vicinity of the U.S−Mexico border.
The population of the city was 31,560 as recorded by the 2010 census. The p ...
and
Nacozari (cities in the state of
Sonora
Sonora (), officially Estado Libre y Soberano de Sonora ( en, Free and Sovereign State of Sonora), is one of the 31 states which, along with Mexico City, comprise the Administrative divisions of Mexico, Federal Entities of Mexico. The state is d ...
). He also purchased numerous other mining sites, including
coal
Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen.
Coal is formed when dea ...
mines in the state of
Coahuila
Coahuila (), formally Coahuila de Zaragoza (), officially the Free and Sovereign State of Coahuila de Zaragoza ( es, Estado Libre y Soberano de Coahuila de Zaragoza), is one of the 32 states of Mexico.
Coahuila borders the Mexican states of N ...
. By 2000, Grupo México was responsible for 87.5 percent of Mexico's copper production and is the world's third-largest copper producer.
Grupo México has been in continual conflict with Local 65, the
Cananea
Cananea is a city in the Mexican state of Sonora, Northwestern Mexico. It is the seat of the Municipality of Cananea, in the vicinity of the U.S−Mexico border.
The population of the city was 31,560 as recorded by the 2010 census. The p ...
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.
In 2004, Grupo México purchased a controlling interest in the
Southern Peru Copper Corporation
Southern Copper Corporation is a mining company that was founded in 1952. The current incarnation of Southern Copper can be traced to the 2005 acquisition of Southern Peru Copper Corporation by the Mexican copper producer Minera México.
88.9 p ...
. 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
Asarco LLC (American Smelting and Refining Company) is a mining, smelting, and refining company based in Tucson, Arizona, which mines and processes primarily copper. The company has been a subsidiary of Grupo México since 1999.
Its three la ...
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
Sterlite Copper is a subsidiary of Sterlite industries, a company owned by Vedanta Limited.
History
It was originally incorporated as Rainbow Investments in 1975, the name of the company was changed to Sterlite Cables in 1976. It was later r ...
. 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.
Pollution and environmental issues
Cases in the US through ASARCO
![ASARCO El Paso](https://upload.wikimedia.org/wikipedia/commons/2/2f/ASARCO_El_Paso.jpg)
Asarco has been found responsible for environmental pollution at 20
Superfund
Superfund is a United States federal environmental remediation program established by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). The program is administered by the United States Environmental Pro ...
sites across the U.S. by the
Environmental Protection Agency
A biophysical environment is a biotic and abiotic surrounding of an organism or population, and consequently includes the factors that have an influence in their survival, development, and evolution. A biophysical environment can vary in scale f ...
. Those sites are:
#Interstate Lead Company, or ILCO, labeled EPA Site ALD041906173, and located in
Leeds
Leeds () is a city and the administrative centre of the City of Leeds district in West Yorkshire, England. It is built around the River Aire and is in the eastern foothills of the Pennines. It is also the third-largest settlement (by populati ...
,
Jefferson County, Alabama
Jefferson County is the List of counties in Alabama, most populous county in the U.S. state of Alabama, located in the central portion of the state. As of the 2020 United States census, 2020 census, its population was 674,721. Its county seat i ...
#Argo Smelter, Omaha & Grant Smelter, labeled EPA Site COD002259588, and located at Vasquez Boulevard and
I-70
Interstate 70 (I-70) is a major east–west Interstate Highway in the United States that runs from I-15 near Cove Fort, Utah, to a park and ride lot just east of I-695 in Baltimore, Maryland, and is the fifth-longest Interstate in the co ...
in
Denver, Colorado
Denver () is a consolidated city and county, the capital, and most populous city of the U.S. state of Colorado. Its population was 715,522 at the 2020 census, a 19.22% increase since 2010. It is the 19th-most populous city in the Unit ...
#Smeltertown, a copper smelter used to illegally dispose of hazardous waste, in
El Paso
El Paso (; "the pass") is a city in and the seat of El Paso County in the western corner of the U.S. state of Texas. The 2020 population of the city from the U.S. Census Bureau was 678,815, making it the 23rd-largest city in the U.S., the s ...
,
El Paso County, Texas
El Paso County is the westernmost county in the U.S. state of Texas. As of the 2020 census, the population was 865,657, making it the ninth-most populous county in the state of Texas. Its seat is the city of El Paso, the sixth-most populous ...
. The plant has since been dismantled.
California Gulch mine and river systemsin
Leadville, Colorado
The City of Leadville is a List of municipalities in Colorado#Statutory city, statutory city that is the county seat, the most populous community, and the only List of municipalities in Colorado, incorporated municipality in Lake County, Colorad ...
;
Summitville Consolidated Mining Corp., Inc. (SCMCI) now bankrupt, EPA Site COD983778432, in Del Norte, Rio Grande County, Colorado;
ASARCO Globe Plant EPA Site COD007063530,
Globeville, near South Platte River, Denver and Adams County, Colorado;
Bunker Hill Mining and Metallurgical Coeur d'Alene River Basin, Idaho;
#
Kin-Buc Landfill in New Jersey;
#
Tar Creek Superfund site
Tar Creek Superfund site is a United States Superfund site, declared in 1983, located in the cities of Picher and Cardin, Ottawa County, in northeastern Oklahoma. From 1900 to the 1960s lead mining and zinc mining companies left behind huge open ...
(Ottawa County) lead and zinc operations and surrounding residences in Oklahoma;
#
Commencement Bay
Commencement Bay is a bay of Puget Sound in the U.S. state of Washington. The city of Tacoma is located on the bay, with the Port of Tacoma occupying the southeastern end. A line drawn from Point Defiance in the southwest to Browns Point in ...
, Near Shore/Tide Flats smelter, groundwater, and residences in Tacoma and Ruston, Washington.
Cases in Mexico
Sea of Cortés acid spill
On July 9, 2019, 3,000 liters of sulfuric acid spilled into the
Sea of Cortés from Grupo México-owned pipes near the city of
Guaymas
Guaymas () is a city in Guaymas Municipality, in the southwest part of the state of Sonora, in northwestern Mexico. The city is south of the state capital of Hermosillo, and from the U.S. border. The municipality is located on the Gulf of Cali ...
, in northwestern Mexico. Three people were injured, and videos appeared online documenting the "sad and harrowing" local damage to marine wildlife as a consequence of the spill.
Pasta de Conchos mine disaster
On February 19, 2006, an
explosion
An explosion is a rapid expansion in volume associated with an extreme outward release of energy, usually with the generation of high temperatures and release of high-pressure gases. Supersonic explosions created by high explosives are known ...
occurred in a coal mine in
San Juan de Sabinas
San Juan de Sabinas is one of the 38 municipalities of Coahuila, in north-eastern Mexico. The municipal seat lies at Nueva Rosita. The municipality covers an area of 735.4 km².
As of 2005, the municipality had a total population of 40,115. ...
,
Coahuila
Coahuila (), formally Coahuila de Zaragoza (), officially the Free and Sovereign State of Coahuila de Zaragoza ( es, Estado Libre y Soberano de Coahuila de Zaragoza), is one of the 32 states of Mexico.
Coahuila borders the Mexican states of N ...
, that is owned by Grupo México.
It was reported that mine workers had gone on
strike
Strike may refer to:
People
* Strike (surname)
Physical confrontation or removal
*Strike (attack), attack with an inanimate object or a part of the human body intended to cause harm
*Airstrike, military strike by air forces on either a suspected ...
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.
[Search for Mexican miners suspended](_blank)
'' Diario'', Ciudad Juárez
Ciudad Juárez ( ; ''Juarez City''. ) is the most populous city in the Mexican state of Chihuahua. It is commonly referred to as Juárez and was known as El Paso del Norte (''The Pass of the North'') until 1888. Juárez is the seat of the Juà ...
, February 25, 2006.
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
The Sago Mine disaster was a coal mine explosion on January 2, 2006, at the Sago Mine in Sago, West Virginia, United States, near the Upshur County seat of Buckhannon. The blast and collapse trapped 13 miners for nearly two days; only one su ...
in West Virginia with the accident that caused death of 12 miners on January 2, 2006. Union critics of the company openly refer to the incident as a "homicide."
After the successful rescue of
33 trapped miners in October 2010 in
Copiapó
Copiapó () is a city and commune in northern Chile, located about 65 kilometers east of the coastal town of Caldera. Founded on December 8, 1744, it is the capital of Copiapó Province and Atacama Region.
Copiapó lies about 800 km nort ...
,
Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
, the case gained popularity again, and many people including bishop Raúl Vera demanded that the case be reopened. Grupo México has not responded.
According to the
IndustriALL Global Union
IndustriALL Global Union is a global union federation, founded in Copenhagen on 19 June 2012.
IndustriALL Global Union represents more than 50 million working people in more than 140 countries, working across the supply chains in mining, energy a ...
, as of August 2016, "Ten years after the mining homicide at Pasta de Conchos, Mexico, the government has still not conducted a thorough investigation into the real causes of the disaster, brought those responsible to justice, recovered the bodies or compensated the families of the victims."
Rio Sonora spill
On August 6, 2014 40,000 cubic meters of
copper sulphate Copper sulfate may refer to:
* Copper(II) sulfate, CuSO4, a common compound used as a fungicide and herbicide
* Copper(I) sulfate
Copper(I) sulfate, also known as cuprous sulfate, is an inorganic compound with the chemical formula Cu2 SO4. I ...
were spilled on
Sonora River
RÃo Sonora (''Sonora River'') is a 402-kilometer-long river of Mexico. It lies on the Pacific slope of the Mexican state of Sonora and it runs into the Gulf of California.
Watershed
The Sonora River watershed covers of public land. Slopes range ...
and
Bacanuchi River by Buenavista del Cobre mine. This has been considered the largest environmental spillage in Mexico's history, polluting 7 municipal districts from
Sonora
Sonora (), officially Estado Libre y Soberano de Sonora ( en, Free and Sovereign State of Sonora), is one of the 31 states which, along with Mexico City, comprise the Administrative divisions of Mexico, Federal Entities of Mexico. The state is d ...
state and affecting by October more than 20,000 people. Pollution has been reported to be reaching
Arizona
Arizona ( ; nv, Hoozdo Hahoodzo ; ood, AlÄ á¹£onak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...
.
Though a trust fund was created to assist the damaged population, complains about its management and proper ecological cleaning have been expressed.
A second spillage, this time
sulfur dioxide
Sulfur dioxide (IUPAC-recommended spelling) or sulphur dioxide (traditional Commonwealth English) is the chemical compound with the formula . It is a toxic gas responsible for the odor of burnt matches. It is released naturally by volcanic activ ...
, was reported.
Profepa ProcuradurÃa Federal de Protección al Ambiente (Spanish)
/ref>
Rail operations ( GMxT, Ferromex)
Grupo Ferroviario Mexicano, S.A. de C.V.
Runs Mexico's largest and most profitable railway with near 11,000 kilometres of tracks and 15,000 carloads, transporting over 40% of all the rail 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 railway, known as FERROMEX, has the largest coverage of the nation's railway system. The rail 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.
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.
Holds and operates the Texas Pacifico railroad in the United States that interconnects the border point Ojinaga, Chihuahua
Ojinaga Municipality (formally: Manuel Ojinaga ) is one of the 67 municipalities of Chihuahua, in northern Mexico. The municipal seat lies at Ojinaga, a rural bordertown on the U.S.-Mexico border. The municipality has an area of 9,500.50 km ...
–Presidio, Texas
Presidio is a city in Presidio County, Texas, United States. It is situated on the Rio Grande (''RÃo Bravo del Norte'') River, on the opposite side of the U.S.–Mexico border from Ojinaga, Chihuahua. The name originates from Spanish and means "f ...
with the city of Fort Worth, Texas
Fort Worth is the fifth-largest city in the U.S. state of Texas and the 13th-largest city in the United States. It is the county seat of Tarrant County, covering nearly into four other counties: Denton, Johnson, Parker, and Wise. According ...
.
FERROSUR
On November 25, 2005, the railroad division acquired the company Ferrosur
The Ferrocarril del Sureste , commonly known as Ferrosur, is a railway that serves the southeastern regions of Mexico. The company was formed in 1998 following the privatization of Mexico's railways. Ferrosur took over the southeast concession. ...
, creating a monopoly over the industry. This Transaction was duly notified to the Mexican Antitrust Commission.
Florida East Coast Railway
Grupo Mexico acquired Florida East Coast Railway
The Florida East Coast Railway is a Class II railroad operating in the U.S. state of Florida, currently owned by Grupo México.
Built primarily in the last quarter of the 19th century and the first decade of the 20th century, the FEC was a pr ...
in 2017.
Carbon footprint
Grupo México reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 5,810 Kt (-560 /-8.8% y-o-y).[Alt URL]
/ref> This follows a 19% reduction in 2019.
See also
*List of companies traded on the Bolsa Mexicana de Valores
List of companies traded on the Bolsa Mexicana de Valores (Mexican Stock Exchange) sorted by revenues and classified according to GICS. List
See also
*List of companies of Mexico
* Economy of Mexico
* Mexican Stock Exchange
* Indice de Pre ...
* List of Mexican companies
*Economy of Mexico
The economy of Mexico is a Developing country, developing mixed-market economy. It is the List of countries by GDP (nominal), 15th largest in the world in nominal GDP terms and the List of countries by GDP (PPP), 13th largest by purchasing power ...
Notes
#
US Geological Survey
Gillian O'Connor, "LatAm copper giants want place on global stage," ''Financial Times
The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...
'', 24 August 2000.
# "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
The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. newspa ...
, 15 October 2004.
# Sara Silver, "Approval expected for Grupo Mexico/ S Peru Copper," ''Financial Times
The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...
'', 23 October 2004.
# "Mexican mine blast traps workers," BBC News
BBC News is an operational business division of the British Broadcasting Corporation (BBC) responsible for the gathering and broadcasting of news and current affairs in the UK and around the world. The department is the world's largest broadca ...
, 20 February 2006
Link to article
References
External links
on Yahoo! Finance
Yahoo! Finance is a media property that is part of the Yahoo! network. It provides financial news, data and commentary including stock quotes, press releases, financial reports, and original content. It also offers some online tools for perso ...
{{DEFAULTSORT:Grupo Mexico
Copper mining companies of Mexico
Silver mining companies of Mexico
Companies listed on the Mexican Stock Exchange
Non-renewable resource companies established in 1978
Mexican companies established in 1978
Companies based in Mexico City
Conglomerate companies of Mexico