Almaden Initiates International Arbitration Against Mexico

Almaden Minerals has chosen to withdraw from domestic litigation and instead pursue arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) following an unsuccessful meeting with the Mexican government on May 30, 2024, regarding their title dispute.

The company has declared its plan to commence arbitration proceedings once the six-month consultation period required by the CPTPP, starting on Dec. 14, 2023, concludes. As a requirement for arbitration, the company must renounce its right to pursue legal actions in Mexican courts. Accordingly, Almaden has instructed its Mexican legal representation to withdraw from its ongoing litigation in the Mexican Federal Administrative Court and other relevant legal actions. Together with Almadex Minerals Ltd., Almaden is seeking damage compensation of not less than US$200 million.

What Is Almaden's Conflict With the Mexican Government?

On Feb. 22, 2023, Almaden Minerals announced that the Ministry of Economy (SE) filed a case before the Court of Puebla, seeking to reject two mineral title applications submitted by the company in 2002 and 2008. These applications focused on the granting of mineral titles supporting Almaden's Ixtaca project in 2003 and 2009, respectively. In 2022, these titles were reverted as the Supreme Court emphasized that SE should have conducted an indigenous consultation process prior to granting Almaden Minerals' titles.

While the company was sustaining the legal dispute with SE, Minera Gorrión, Almaden’s Mexican subsidiary, filed a provisional injunction request before the Mexican Federal Administrative Court to prevent SE from releasing the mineral rights while the legal proceedings were ongoing. Recently, the Federal Appeals Court (TCC) dismissed all appeals, including the company's, stating the submission aligns with SCJN's 2022 decision since it did not formally prevent SE from reviewing the technical aspects of the mineral title application. However, the TCC ruling did not address the submission's validity, preserving Almaden's right to challenge it through the Federal Administrative Court (TFJA). Finally, on Oct. 16, 2023, TFJA granted a definitive injunction, barring SE from releasing mineral rights covering Almaden’s titles during an anticipated 18-month trial. 

Most recently, on Dec. 14, 2023, Almaden filed a request for a consultation with SE’s General Directorate of Legal Consultancy for International Trade (DGCJCI) under the argument of Mexico’s breach of CPTPP’s investment obligations. SE reassessed the original mineral title applications, considering them deficient and unfeasible, contrary to its prior position, which contradicted the company and its subsidiary's right to amend or supplement the applications.