Huge Bet on Gold

El Limón-Guajes mine, inaugurated this week. MILENIO/JESÚS QUINTANAR 

A Canadian-owned mine in the Guerrero Gold Belt is the biggest single investment ever seen in the state, said the governor this week at the official inauguration of the El Limón-Guajes mine.

Construction of the US $800-million gold mine, located on 630 hectares of land 43 kilometers south of Cocula, began in 2013.

With annual production capacity of 358,000 ounces of gold, it will be one of the largest and lowest-cost gold mines in the world, according to Toronto-based Torex Gold Resources Inc.

Torex CEO Fred Stanford said the mine has generated 5,000 jobs in the area, both in direct employment by the company and through contractors. He also said an important feature of the project is the environmental monitoring and a collaboration agreement with the Autonomous University of Guerrero to ensure adherence to environmental protection standards.

This week’s event also saw Agrarian Development Secretary Rosario Robles present the keys to the owners of 169 homes built by the mining firm as part of its obligations to help in the development of local communities.

Torex invested $42 million in the construction of the 500-square-meter houses.

Governor Héctor Astudillo spoke at this week’s event, saying there had never been an investment — “neither a hotel nor a highway” — that matched that of the new mine.