MEXICO MINERALS YEARBOOK—1988declining lead and zinc production
from
1984 onwards, indicates that Mexican mines, which are basically leadzinc-silver
mines, were forced to mine their highest grade ores to offset the prevailing
low metal prices of the penod. The decline in silver production since 1986
suggests that the quantities of high-grade ore available for mining were
becoming limited, and further suggests that production might continue to
decline in the absence of significant new mine development. 
 Principal silver developments in 1988 included the capacity expansions at
the Tayoltita and San Antonio Mines of Corporaclon Industrial Sanluls S.A.
in Durango and Sinaloa, respectively, and a capacity increase at Fresnillo,
Zacatecas. Discovery of the relatively highgrade Santa Niflo vein systems
in what had been considered a barren area has revitalized the Fresnillo district
and prompted the expansion of milling capacity to 50,000 tons per month.
Milling capacity at Tayoltita was increased to 1 million tons per year, and
at San Antonio to 170,000 tons per year. Banco Cremi, formerly the Banco
de Crédito Minero, opened a precious metals refinery in Mexico
with
the capacity to refine 6 million troy ounces of silver annually. Minera Real
de Angeles S.A. added waste removal equipment during the year, in response
to the deepening of the Real de Angeles Mine with its concomitant increase
in the waste-toore ratio. However, this new equipment was not expected to
increase the capacity of the mine. 
 Late in the year, the Government announced plans to privatize its minority
interests in the Lampazos Mine in Sinaloa and the Real de Angeles Mine in
Zacatecas. The State interest in Lampazos was to be acquired by Empresas
Frisco S.A., the holder of the majority interest, and the State interest
in Real de Angeles was to be acquired pro rata by Empresas Frisco and Placer
Dome Ltd. of Canada. 
 
 Zinc.—Zinc production in 1988 de1066 
creased again for the fifth consecutive year, similar to the production pattern
for lead. However, refined zinc production increased. This increase reflected
both price increases for zinc metal that occurred in 1988, and the improved
operating performance at the zinc refineries of IMMSA at San Luis PotosI
and of Pefloles at Torreón, Coahuila. 
 
Industrial Minerals 
 
 Barite.—Barite production increased by more than 33% in 1988,
reaching
a new record high. This record followed a 25% increase in 1987. PEMEX statistics
show only a 5% increase in meters drilled in 1988 over that of 1987, indicating
that a significant proportion of the increased barite production may have
been exported. The major producers continued to be Barita de Sonora S.A.
and Pefloles from its La Minita Mine in Michoacan. During 1988, the State
interest in Barita de Sonora, which had been financed by the Fideicomiso
de Minerales NoMetalicos Mexicanos, was sold to private investors. 
 
 Cement.—Cement production, which in 1988 was essentially unchanged
from that of 1987, reflected the general pattern of the national economy.
Preliminary data suggest that exports may have increased over those of 1987
approximately 15% to about 4.2 million tons. Virtually all Mexican cement
exports were destined for the United States. Mexico continued as the largest
foreign supplier of cement to the United States. 
 
 Fluorspar.—Indicated fluorspar production increased slightly in
1988
over that of 1987, but remained significantly below the levels of 1 million
tons or more achieved during the early 1970's. During 1988, the quasi-official
Instituto Mexicano de la Fluorita A.C. was dissolved, and its reporting responsibilities
assumed by the Cámara Minera de Mexico. However, a discrepancy
between
production data reported by the Instituto and the Cam~a Minera, on the one
hand, and 
by the Consejo de Recursos Minerales, on the other, was not resolved. Production
data in this report are those compiled by the Consejo. 
 Significant developments during the year included the opening of a new fluorspar
mine near Taxco, Guerrero by CIa. Minera Las Cuevas S.A. de C.V., and the
sale of the State interest in Qulmica Fluor S.A. de C.V. The new mine, known
as La Azul, was to have a capacity of 200,000 tons per year. Ore reserves
were reported to be 1 million tons. Qulmica Fluor, with a capacity of 60,000
tons per year at Matamoros, Tamaulipas, was Mexico's largest producer of
hydrofluoric acid. The Company is affiliated with E.I. du Pont de Nemours
& Co. of the United States. 
 
 Graphite.—Mexican graphite production increased for the fourth
consecutive
year, reflecting an increasing demand for graphite refractories and electrodes,
as well as an aggressive export drive. The country reportedly supplied 40°lo
of the graphite imported into the United States. Amorphous graphite was produced
by several companies from metamorphosed coal seams near Hermosillo, Sonora.
These companies included affiliates of Cummings-Moore Graphite Co. and Superior
Graphite Co. of the United States. Crystalline graphite was produced by Grafito
de Mexico S.A. from deposits in Oaxaca. Grafito de Mexico was increasing
its capacity from 2,000 to 4,000 tons per year. The company, a unit of the
Fideicomiso de Mmerales No-Metalicos Mexicanos, was among the State-owned
companies scheduled for privatization. 
 
 Gypsum. —Reported gypsum production decreased to the lowest level
in at least 5 years, in accord with the general level of business and construction
activity in 1988. The largest producer, CIa. Occidental Mexicana S.A., an
affiliate of DOMTAR Ltd. of Canada, quarried gypsum on San Marcos Island
in the Gulf of California for markets in the western United States