Grupo Carso is a controller of diverse companies in Mexico; through his subsidiary companies, participates and maintains an important position in his capitals in the sectors of autoparts, construction materials, products of consumption, mining, supermarkets, restaurants and telecommunications. 

Grupo Carso S.A. de C.V.  

This is very diversified holding company that controls 89.4% of Empresas Frisco as of December, 2001. Frisco in turn has interests in Real de Angeles, San Francisco del Oro, Minera Tayahua, Quimica Fluor, Cia San Felipe, Minera Maria, Minera Cero de Plata, Ferro Sur etc.

WWWinfo 5Dec01

The mining industry is currently living a difficult period because of the generalized price decreases of raw materials that took place during 1999. Prices of materials extracted
or produced by Frisco followed a descending trend except for Zinc and fluorhydric acid. Therefore, the company decided to store 923 Kilograms of gold to be sold only when prices were at acceptable levels. During 1999, investments were made in Minera Tayahua, improving its mineral milling capabilities. In July, Frisco purchased 66.67 % of the capital of Ferrosur, S.A. de C.V., for 73 million dollars and assumed responsibility for Ferrosurīs US$257 million debt. Ferrosur owns and operates the Mexico-Veracruz-Coatzacoalcos railroad.

Sales volume for the year decreased considerably, owing mainly to the closing of Minera Real de angeles whose exploitable reserves, at the current prices, were depleted. However, Friscoīs total sales increased in lieu the consolidation of Ferrosurīs results as of August 1999, reaching P$ 1,947.9 million and a P$241.4 million operating profit. Ferrosur reported sales of P619.9 million, operating profit of P$63.0 million and net profit of P$20.4 million.

During 2000, FRISCO will embark on activities designed to insure the exploitable reserves of the next few years. Thus, in the mine San Francisco del Oro, the ore deposits of Don Pablo, Escalon and Clarines will be prepared for exploitation. In San Felipe, the area La escondida will be explored with the objective of commencing production within two years. In Tayahua the constant exploration of the silver deposits has resulted in important increases in proven reserves that are expected to reach 11.4 million tons. 

For 2000, the company has plans to invest P$664 million in Ferrosur, for the purchasing of engines and the maintenance of cars and rail tracks. An additional P$76 million will go to the chemical sector, plus P$39 million for the mining sector; said investments will be directed at conserving and improving facilities and search for new ore deposits.

During the year, Ferrosur served approximately 160 clients. The lineīs use is mainly for the transportation of agricultural products, petrochemicals, industrial products minerals, and cement.

1999 Annual Report