Report – Buyer Delegation to MinEXPO2012

The largest mining exhibition

WHAT HAPPENS IN VEGAS DOES NOT STAY IN VEGAS

As an effect of the incredible development of the emerging Asian economies and their eager need of ferrous and non-ferrous metals as well as precious metals, the Mexican government prudently initiated works to a sustainable growth program for the mining sector.  A wild rush of foreign investors are heading Mexico to gain as much of this abundance of mining resources.

MEXICO PREPARING THE ROADWAY

A region´s development is determined by its infrastructure, its workforce capabilities, government incentives, ease of administration and acceptance of residents but, most importantly  by the investors and their technological resources. These latter are Mexico´s largest needs.

The U. S. Commercial Service is totally devoted to promoting U. S. goods and services to Mexico. Promoting Mexican mining resources, however, was thought of as a good generator of opportunities for the U. S. exporter.

The Mexican delegation included Mexican government personalities who presented Mexico´s mine richness. Expert market analysts also presented valuable statistics about the sector and the upcoming opportunities for both the investor and product and service providers. The group had different goals but they all shared the same objectives.

THE OBJECTIVES
Delegates should return from Las Vegas with solutions to support the three mining development elements: Exploration, Excavation and Production.
EXPLORATION. Camimex, the Mexican mining chamber recently informed 730 mineral deposits were awaiting foreign investment and that number grows every day. Smart investors require to know not just of the existence of deposits but also their potential for long lasting production. A technology capable to provide this information reliably is not at hand in Mexico. One group of Mexican buyers were committed to getting representation or even acquiring such technology.
EXCAVATION. Heavy machinery used in perforation and excavation and strategies to crack in the most promising mineral veins require enormous investment.  Another group of businessmen aimed to partnering with heavy machinery manufactures to facilitate transit of such machinery into Mexico.
PRODUCTION. Mexico does not lack of skilled workforce capable for the mining hard work, men and women compete in abilities in extracting the mineral. Some deficiencies have to be addressed, like that of safety to protect workers integrity. It is widely known that Mexican miners work in precarious conditions. This great out-breach is however a great opportunity for U. S. companies exporting safety equipment and devices such as air cleaners, methane masks,  harnesses, air purifiers, slings, fluid conductors, cranes, elevators, and more. Surprisingly here, is where the most interest was shown by the Mexican buyers, probably persuaded by the latest accidents or because of the lesser cost of these commodities.

RESULTS OF PROMOTION

A total of 178 Mexican buyers registered to the Mexican delegation to MinEXPO2012, that´s nearly 667 different companies. With no exception all of them stated their firm intention to purchase U. S. goods or services; some to increment their production capabilities, some to increase their business offer. In the group, important representatives of the biggest Mexican mining companies like Grupo Mexico, Grupo Penoles and Minera Autlan. Their meetings and other activities where aside of our program, however they made use of all the benefits awarded to delegates.

PROGRAMS, TOOLS AND RESOURCES FOR THE BUYER

The International Business Center provided the Mexican buyer with personalized support of international trade specialists, professional interpreters, open and private meeting rooms. The U. S. Commercial Service also provided insights to the Mexican mining sector, financing information, matchmaking sessions and business receptions.  The business center was equipped with computers with free internet access for email checking, internet exploring and building of exhibition best tour routes.

RESOURCES FOR THE MEXICAN GOVERNMENT

With influence of the U. S. Commercial Service, Mexican government representatives were interviewed by the Discovery Channel were Mexico´s mining potential was discussed in extent.

THE STATS
Twenty five U. S. exhibitors showed interest in the Mexican market and interviewed with our mining sector specialist. Their main products included solutions for maintenance, construction, alternative energies, safety and security. They will surely visit Mexico in the following months looking for representatives, distributors or end users. Each of the Mexican buyers interviewed with an average of six exhibitors making a total of 360 meetings in three days of the show. Twelve business men expressed their interest to report successes within three months.

SUMMARY
The Mexican government has an aggressive goal towards the increment of foreign direct investment to the mining sector. During President Calderon´s administration, investment amounted to $25 billion and this is a record figure. The goal for next term is to beat that record and even surpass it.

In the next years, it will be essential for both the Mexican government and the U. S. government to collaborate for the sake of development of the mining sector for the first and economic recovery for the latter.  The trade activities performed by the delegation have originated important discussions for future investments. When these happen, Mexico will demand equipment, machinery products and technology as well as services from the small and medium size companies in the U. S. making bilateral collaboration even greater than it is today, strengthening the bonds that for centuries have brothered our nations.

This happened in Vegas, but came back with us to Mexico.

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