UPDATE 1-Mexican miner Grupo Mexico to invest $3.5 bln in 2013
By Gabriel Stargardter
MEXICO CITY Jan 24 (Reuters) - Mexican mining and infrastructure giant Grupo Mexico plans to boost investment by 65 percent in 2013 to $3.5 billion, the company said in a release on Thursday.
Grupo Mexico will spend $2 billion on its mining division, $1 billion on its infrastructure division and $500 million on its transport division this year, it said.
Grupo Mexico said it would continue to invest in the Buenavista mine in northern Mexico, which has the world's largest copper reserves. It hopes that investment, alongside others in the United States and Peru, will allow it to produce 1.4 million tonnes of copper a year by 2015.
The transport division will continue to focus on railway expansion. Investment in the infrastructure division, which the company sees as a hot growth prospect, will pay for the construction of two power stations and a wind farm, the company said.
Analysts said the investment, although not a surprise, showed a bullish attitude toward growth, particularly when other mining companies are slowing down or freezing investment.
"It's clearly something very aggressive," said Juan Baptista Bruny, an analyst at BBVA Bancomer in Mexico City. "It sends a very clear signal of optimism on the evolution of the market, their projects and their expectations."
The company's share price was up 0.59 percent at 49.85 pesos on the news, driving gains in Mexico's IPC stock index.
Grupo Mexico runs copper mines in Mexico, Peru and the United States as well as cargo train lines across Mexico.
- Washington wins diplomatic support for campaign in Iraq; Syria trickier |
- Apple iPhone 6 pre-orders hit record 4 million on first day |
- Western sanctions are testing Russia's strength: Medvedev |
- Alibaba worried about Facebook IPO as considered Nasdaq versus NYSE |
- Exclusive: Two Apple medical trials shed light on how HealthKit will work