LATIN AMERICA — Comprehensive support program for mining,

Mexico’s mining and metallurgical sector has been a major source of foreign exchange through trade.

In recent years, Mexico has ranked among the top five countries in production of 12 minerals — mainly metallic minerals, which account for 67% of mining and metallurgical exports. There is, moreover, great potential for non-metallic minerals. Only 10% of the nation has been explored, and nearly 66% of its area has the geology necessary for hosting non-metallic deposits. For the sector to better compete with other countries, Mexico must update its production processes and increase the quality and added value of its products. To achieve this, BANCOMEXT, the foreign trade bank of Mexico, has unveiled the Comprehensive Support Program. It provides financing mechanisms and promotional services designed to bolster development and competitiveness in mining.

The program could provide production and marketing assistance to exporters, their suppliers and potential exporters.

The benefits are channeled through credit institutions, such as commercial banks, credit unions and lease-financing firms. It is now easier for mining and metallurgical companies to obtain such loans.

Also, an unconditional “immediate payment guarantee” is offered to credit institutions that support companies “to be developed.”

To make the program attractive to such companies, BANCOMEXT and leading exporters have agreed to work at strengthening supply companies. The Foreign Trade Service Centre (or CSCE, to use its Spanish acronym) advises companies on trade and training. Also, BANCOMEXT has established 40 advisory offices around the world.

— Submitted by the Mexican Investment Board, Mexico City.