- Political, financial and legal stability.
- Mining friendly jurisdiction.
- Considerable resource potential.
Tara is currently focused on acquiring and developing properties in the natural resource belt of the Sierra Madre Occidental and other prolific areas in the states of Chihuahua, Sonora, and Sinaloa, Mexico. Mexico, a country with a mining history which straddles almost 500 years and still weighs amongst the world’s largest metal producers. It represents a major mineral exploration ground. Although best known for its production of silver – over 10 billion ounces have been produced to date – the country also mines significant quantities of copper, gold, lead and zinc.
Mexico consists of a large and elevated plateau flanked by two volcanic mountain ranges, the Sierra Madre Occidental and Oriental, which meet in the south forming the Sierra Madre del Sur. Volcanic activity is responsible for the emplacement in numerous locations of a large number of precious and base metal mineral deposits that riddle the map of the Sierras Madre.
Under the Mexican constitution, minerals are part of the national patrimony. The exploration, exploitation and beneficiation of the minerals have preference over any other use for the land. The law permits up to 100 percent private ownership in equity exploration, development and production of mineral substances. There are also no limits for the mining concession surfaces. Production concessions are awarded for 50 years and are renewable for a similar period.
Mexico has benefited from considerable foreign investment into its mining industry. Some of the world’s largest mining companies have operations there. There are also almost 200 foreign publicly traded companies involved in exploration and mining activities in Mexico, the majority of which are North American based. Modern exploration techniques have recently been applied to Mexico by foreign explorers. A hefty pipeline of precious and base metal projects is now being unlocked. With copper, molybdenum, silver, zinc and oil prices at all-time highs, the stage is set for a major push in exploration, development and production.
44% of all major discoveries in gold are found in Latin America. Mexico is also a larger producer of silver and the fifth largest producer of lead and zinc. In 2005, over 418,000 tonnes of zinc and over 156,000 tonnes of lead were produced in the country. In 2004, Mexico was ranked as the world’s 11th largest producer of copper. In 2005 copper production was reported at 368,000 tonnes which marked a 4.6% increase from the previous year.
Political and financial stability, legal security for investors and its location next to one of the world’s top importers of resources are all positive factors impacting Mexico’s mining industry today. Mexico is a very mining friendly jurisdiction and gives legal guarantees to foreign investors.