Grupo México
Encyclopedia
Grupo México is the largest mining
corporation in Mexico
and the third largest copper
producer in the world.
Ferrocarril Mexicano (Ferromex), the company's rail transport division, operates the nation's largest rail fleet.
in 1988. After the government of Carlos Salinas
declared the state mining company bankrupt, Larrea purchased key Mexican copper mines in Cananea
and Nacozari (cities in the state of Sonora
). He also purchased numerous other mining sites, including coal
mines in the state of Coahuila
. By 2000, Grupo México was responsible for 87.5 percent of Mexico's copper production and is the world's third-largest copper producer in the world.
Grupo México has been in continual conflict with Local 65, the Cananea
branch of the Mexican Mine Workers' Union
(SNTMMSRM). During miners' strikes
in January 2003 and October 2004, Grupo México responded with threats to close the Cananea mines.
In 2004, Grupo México has also purchased a controlling interest in the Southern Peru Copper Corporation. Grupo Mexico acquired 54.2% equity interest in Southern Peru Copper Corporation from ASARCO LLC, a mining company operating in the United States. The SPCC equity sale is subject to a litigation between Grupo Mexico and ASARCO
pending in the U.S. District Court for the Southern District of Texas under District Court Judge Andrew Hanen. As of September 2009, ASARCO was the focus of a bidding war begun in May 2008 between its own parent company Grupo México and India-based Sterlite Industries. On August 31, 2009, U.S. Bankruptcy Judge Richard Schmidt recommended that U.S. District Judge Andrew Hanen accept Grupo México's $2.5 billion bid for ASARCO as it prepares to come out of bankruptcy.
occurred in a coal mine in San Juan de Sabinas, Coahuila
, that is owned by Grupo México.
It was reported that mine workers had gone on strike
against Grupo México at least 14 times, "not only for salary increases… but because of its constant refusal to review security and health measures." Grupo México said that they, in conjunction with the mining union, signed a certificate on February 7, 2006 declaring the mine safe.
Although the mining operations of a coal deposit is always a risky business, due to the possibility of huge gas concentrations, there are certain theories that indicate the mine has an important lack of safety rules, very similar to the problem presented in the Sago Mine disaster
in West Virginia with the accident that caused death of 12 miners on January 2, 2006.
After the successful rescue of 33 trapped miners
in October 2010 in Copiapó
, Chile
, the case gain popularity again, and many people including bishop Raúl Vera demanded that the case be reopened. Grupo México has not responded.
in the United States that interconnects the border point Ojinaga, Chihuahua–Presidio, Texas
with the city of Fort Worth, Texas
.
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
corporation in Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
and the third largest copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
producer in the world.
Ferrocarril Mexicano (Ferromex), the company's rail transport division, operates the nation's largest rail fleet.
History
The company was founded by Raul Antonio Escobedo and LarreaLarrea
Larrea is a genus of flowering plants in the caltrop family, Zygophyllaceae. It contains five species of evergreen shrubs that are native to the Americas. The generic name honours Spanish scientist J.A. de Larrea. South American members of this genus are known as jarillas and are so closely related...
in 1988. After the government of Carlos Salinas
Carlos Salinas
Carlos Salinas de Gortari is a Mexican economist and politician affiliated to the Institutional Revolutionary Party who served as President of Mexico from 1988 to 1994. Earlier in his career he worked in the Budget Secretariat all the way up to Secretary...
declared the state mining company bankrupt, Larrea purchased key Mexican copper mines in Cananea
Cananea
-Economy:Mining is the main source of revenue for Cananea and will be for the foreseeable future. Eighty percent of the population is directly or indirectly supported by mining companies in Cananea. The first and most important mining company is Mexicana de Cananea, S.A. de C.V. owned by and...
and Nacozari (cities in the state of Sonora
Sonora
Sonora officially Estado Libre y Soberano de Sonora is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided into 72 municipalities; the capital city is Hermosillo....
). He also purchased numerous other mining sites, including coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
mines in the state of Coahuila
Coahuila
Coahuila, formally Coahuila de Zaragoza , officially Estado Libre y Soberano de Coahuila de Zaragoza is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico...
. By 2000, Grupo México was responsible for 87.5 percent of Mexico's copper production and is the world's third-largest copper producer in the world.
Grupo México has been in continual conflict with Local 65, the Cananea
Cananea
-Economy:Mining is the main source of revenue for Cananea and will be for the foreseeable future. Eighty percent of the population is directly or indirectly supported by mining companies in Cananea. The first and most important mining company is Mexicana de Cananea, S.A. de C.V. owned by and...
branch of the Mexican Mine Workers' Union
National Union of Mine and Metal Workers of the Mexican Republic
The National Union of Mine and Metal Workers of the Mexican Republic is a union of coal and copper miners, as well as iron and steel workers, in Mexico. It was founded in 1934, and in 1936 it became an affiliate of the newly formed Confederation of Mexican Workers .The SNTMMSRM's leaders were...
(SNTMMSRM). During miners' strikes
Strike action
Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...
in January 2003 and October 2004, Grupo México responded with threats to close the Cananea mines.
In 2004, Grupo México has also purchased a controlling interest in the Southern Peru Copper Corporation. Grupo Mexico acquired 54.2% equity interest in Southern Peru Copper Corporation from ASARCO LLC, a mining company operating in the United States. The SPCC equity sale is subject to a litigation between Grupo Mexico and ASARCO
ASARCO
ASARCO LLC is a mining, smelting, and refining company based in Tucson, Arizona that mines and processes primarily copper. The company, a subsidiary of Grupo México, is currently in Chapter 11 bankruptcy...
pending in the U.S. District Court for the Southern District of Texas under District Court Judge Andrew Hanen. As of September 2009, ASARCO was the focus of a bidding war begun in May 2008 between its own parent company Grupo México and India-based Sterlite Industries. On August 31, 2009, U.S. Bankruptcy Judge Richard Schmidt recommended that U.S. District Judge Andrew Hanen accept Grupo México's $2.5 billion bid for ASARCO as it prepares to come out of bankruptcy.
Pasta de Conchos mine disaster
On February 19, 2006, an explosionPasta de Conchos mine disaster
The Pasta de Conchos mine disaster occurred at approximately 2:30 a.m. CST on February 19, 2006, after a methane explosion within a coal mine near Nueva Rosita, San Juan de Sabinas municipality, in the Mexican state of Coahuila. The mines were run by Grupo México, the largest mining company in the...
occurred in a coal mine in San Juan de Sabinas, Coahuila
Coahuila
Coahuila, formally Coahuila de Zaragoza , officially Estado Libre y Soberano de Coahuila de Zaragoza is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico...
, that is owned by Grupo México.
It was reported that mine workers had gone on strike
Strike action
Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...
against Grupo México at least 14 times, "not only for salary increases… but because of its constant refusal to review security and health measures." Grupo México said that they, in conjunction with the mining union, signed a certificate on February 7, 2006 declaring the mine safe.
Although the mining operations of a coal deposit is always a risky business, due to the possibility of huge gas concentrations, there are certain theories that indicate the mine has an important lack of safety rules, very similar to the problem presented in the Sago Mine disaster
Sago Mine disaster
The Sago Mine disaster was a coal mine explosion on January 2, 2006, in the Sago Mine in Sago, in Upshur County, West Virginia, USA, near the county seat of Buckhannon. The blast and collapse trapped 13 miners for nearly two days; one miner survived...
in West Virginia with the accident that caused death of 12 miners on January 2, 2006.
After the successful rescue of 33 trapped miners
2010 Copiapó mining accident
The 2010 Copiapó mining accident, also known as the "Chilean mining accident", began in the afternoon of Thursday, 5 August 2010 as a significant cave-in at the troubled 121-year-old San José copper–gold mine. The mine is located deep in the Atacama Desert, one of the driest and harshest...
in October 2010 in Copiapó
Copiapó
Copiapó is a city in northern Chile, located about 40 miles east of the coastal town of Caldera. Founded on December 8, 1744, it is the capital of Copiapó Province and Atacama Region....
, Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, the case gain popularity again, and many people including bishop Raúl Vera demanded that the case be reopened. Grupo México has not responded.
Grupo Ferroviario Mexicano, S.A. de C.V.
Runs Mexico’s largest and most profitable railroad with near 6,000 miles of tracks and 15,000 carloads, transporting over 40% of all the railroad cargo of the country. GMEXICO acquired the rail concession from the Mexican federal government for 100 years in 1998. GMEXICO owns 74% and Union Pacific 26% of the company. The railroad, known as FERROMEX, has the largest coverage of the nation’s railway system. The railroad system connects the main cities in the country, where 70% of industrial production is created and services five land ports on the border with USA, four seaports on the Pacific Ocean and two on the Gulf of Mexico.Intermodal México, S.A. de C.V.
Operates since November 2001. Its objective is to develop and provide multi-modal services and logistics for load transportation. For such purposes it has constructed facilities in Guadalajara, Monterrey, Torreón, Silao, Saltillo and is in the process of constructing several other facilities in major cities of central and Northern Mexico.Texas Pacifico, Inc.
Holds and operates the Texas Pacifico railroadTexas Pacifico Transportation
Texas Pacifico Transportation Ltd. is a railroad operating company in West Texas that is owned by Grupo México. The company operates over the South Orient Rail Line under a lease and operating agreement with the Texas Department of Transportation and the South Orient Rural Rail Transportation...
in the United States that interconnects the border point Ojinaga, Chihuahua–Presidio, Texas
Presidio, Texas
Presidio is a city in Presidio County, Texas, United States. It stands on the Rio Grande , on the opposite side of the U.S.-Mexico border from Ojinaga, Chihuahua. The population was 4,167 at the 2000 census....
with the city of Fort Worth, Texas
Fort Worth, Texas
Fort Worth is the 16th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, just southeast of the Texas Panhandle, the city is a cultural gateway into the American West and covers nearly in Tarrant, Parker, Denton, and...
.
FERROSUR
On November 25, 2005, the railroad division acquired the company Ferrosur, creating a monopoly over the industry. This Transaction was duly notified to the Mexican Antitrust Commission.External links
- Grupo México
- Profile on Yahoo! FinanceYahoo! FinanceYahoo! Finance is a service from Yahoo! that provides financial information. It is the top financial news and research website in the United States, with more than 23 million visitors in February 2010, according to comScore....