Grupo México is the largest mining corporation in Mexico and the third largest copper producer in the world through ASARCO. Ferrocarril Mexicano, the company's rail transport division, operates the nation's largest rail fleet.
History
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. 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. Grupo México has been in continual conflict with Local 65, the Cananea branch of the Mexican Mine Workers' Union. During miners' strikes in January 2003 and October 2004, Grupo México responded with threats to close the Cananea mines. In 2004, Grupo México 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.
Tar Creek Superfund site lead and zinc operations and surrounding residences in Oklahoma;
Commencement Bay, Near Shore/Tide Flats smelter, groundwater, and residences in Tacoma and Ruston, Washington.
Cases in Mexico
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. 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."
On August 6, 2014 40,000 cubic meters of copper sulphate were spilled on Sonora River and Bacanuchi River by Buenavista del Cobre mine. This has been considered the largest environmental spillage in Mexico's history, polluting 7 municipal districts from Sonora state and affecting by October more than 20,000 people. Pollution has been reported to be reaching Arizona. Though a trustfund was created to assist the damaged population, complains about its management and proper ecological cleaning have been expressed. A second spillage, this time sulfur dioxide was reported
Runs Mexico’s largest and most profitable railway with near 9,600 kilometres of tracks and 15,000 carloads, transporting over 40% of all the rail 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 railway, known as FERROMEX, has the largest coverage of the nation’s railway system. The rail 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.
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.
