Zinc production at Peñasquito broke records in 2024 and maintained its leadership as Mexico‘s top zinc-producing mining unit.

Peñasquito produced 258,000 tons of zinc, a year-on-year increase of 141 percent.

Newmont purchased Goldcorp Inc. in 2019 to acquire the Peñasquito mine. The agreement was a share transaction valued at approximately $10 billion.

Zinc production at Peñasquito

Demand for zinc depends on the pulse of global industrial activity. In addition, galvanized steel is key, as it accounts for about 50% of global consumption. This segment, in turn, is linked to the automotive and construction sectors. Likewise, inventories add pressure and volatility, as they adjust according to economic activity and prices.

The following shows the trend in zinc production at Peñasquito, in thousands of tons:

• 2015: 176.
• 2016: 119.
• 2017: 163.
• 2018: 144.
• 2019: 85.
• 2020: 173.
• 2021: 205.
• 2022: 171.
• 2023: 104.
• 2024: 258.

Throughout these years, Peñasquito has been the largest zinc mining unit in Mexico.

History in Mexico

Zinc production in Mexico began in the early 20th century, when large deposits were discovered in Zacatecas and Chihuahua. Since then, the sector has advanced with new infrastructure. It has also attracted investment and consolidated an industry that has grown steadily.

Peñasquito began its history in 1992 with the first explorations in Concepción del Oro. Then, after intermittent studies until 2006, a large-scale polymetallic deposit was confirmed. Construction began in 2007. Then, in 2009, the first concentrates were produced. Finally, commercial production began in 2010.

The price of zinc is volatile. It also responds to multiple factors. Global supply and demand set the tone. At the same time, the supply of concentrate comes mainly from China, Australia, North America, and Latin America. In addition, current and past prices influence investment in new mines and smelters. Therefore, the combined effect of these elements cannot be accurately predicted.

Other prominent zinc producers in Mexico are Peñoles, Grupo México, Fresnillo plc, and First Majestic Silver.