Grupo México

The company was founded by Raúl Antonio Escobedo and Larrea Mota Velasco in 1978. 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.[1]

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. [2]

In 2004, Grupo México purchased a controlling interest in the Southern Peru Copper Corporation. [3] 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.

Mining division

Mining is Grupo México's largest division, operating 14 mines and 52 plants in Mexico, Peru, USA, Argentina, Chile, Ecuador and Spain. The division operates as Americas Mining Corporation, whose main subsidiaries are Southern Copper Corporation in Mexico and Peru, ASARCO (American Smelting and Refining Company) in the United States and Minera Los Frailes in Spain.

Grupo México is the largest mine operator in Mexico and Peru, along with the third largest in the United States. The company primarily focused on the extraction of copper. It is the fourth largest copper producer worldwide and controls the largest copper reserves in the world. The company also mines molybdenum, silver, zinc and gold.

Transportation division

Transportation is Grupo México's second largest division, operating 11,136 kilometres (6,920 mi) of track in 24 states of Mexico and in the U.S. states of Texas and Florida. The division operates as GMéxico Transportes, S.A.B. de C.V. (GMXT).

Ferromex

Ferromex is the largest (by length) railway in Mexico, operating 9,610 kilometres (5,970 mi) of track connecting Mexico City and Guadalajara with the Pacific port of Manzanillo and various crossings along the United States border. The railroad was founded in 1998 when Grupo México and Union Pacific Railroad purchased the Northwest Railroad concession during the privatization of railroads in Mexico. Groupo México owns 74% of Ferromex and Union Pacific owns the remaining 26%.

Pasta de Conchos mine disaster

On February 19, 2006, an explosion 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.[4] Union critics of the company openly refer to the incident as a "homicide."

After the successful rescue of 33 trapped miners in October 2010 in Copiapó, Chile, the case gained popularity again, and many people including bishop Raúl Vera demanded that the case be reopened. Grupo México has not responded.

According to the IndustriALL Global Union, as of August 2016, "Ten years after the mining homicide at Pasta de Conchos, Mexico, the government has still not conducted a thorough investigation into the real causes of the disaster, brought those responsible to justice, recovered the bodies or compensated the families of the victims."