Gold production in Mexico?

It sounds surprising, I know, Mexico isn't one of the world's most impressive economies, but some good things are still happening in the land of tequila, and the precious yellow metal is one of them. First of all, when it comes to a long term trend, Mexico is perhaps the most impressive gold production economy, with a stable rise in the gold output throughout the last 10 years, which implies that this positive trend will continue on. Although gold prices are on the rise, the global out put of gold aren't in a promising trend. USA, Australia and South Africa, which have always been considered the main gold producing countries, are recently experiencing a quite troubling decrease of gold output, which makes Mexico's gold production rates even more surprising.

Only in the 90's did Mexico a more permissive foreign investment policy, which allowed the country to implement a more efficient mining legislation and the establishment of many gold mining projects. Since systematical gold mining is still rather fresh, as less than 1/5 of the country has been explored in search for gold, the sky is pretty much the limit for Mexico's future gold output. Many foreign, especially Canadian, foreign companies are establishing hundreds of mining projects through Mexico, which would probably increase the increase rate of gold production significantly. Such companies include the Vancouver's Timmins Gold Corporation and Goldcorp Inc., which work mainly in the Penasquito mine which is supposed to yield several hundred thousands ounce of gold per year in the next decade, and Toronto's Agnico Eagle Mines which is destined to work mainly in the Pinos Altos mine, hoping to reach 200,000 ounce of gold per year.

2009 and 2010 are supposed to yield very impressing gold output data. The 2009 gold out put is supposed to be around 900 ounces. True, this is still not a yield which could compete with the US, Australia, South Africa and even not with Peru, Canada and Ghana, but the promising trends and predictions imply that Mexico's gold production will exceed those of some of the above countries very soon.

The politics, which in the past have been considered mining suppressing in Mexico, have now made Mexico into a country with a distinct pro-mining attitude, which along with the country's exceptional geology are sources of optimism as well.

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