Image credits: Sebastian Pichler
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News Article

Guerrero Could Unlock Resources from the Mining Fund

By Paloma Duran | Thu, 11/04/2021 - 14:55

Guerrero has MX$1.4 billion (US$67.2 million) frozen from the canceled Mining Fund, which could be used if new governor Evelyn Salgado asks the federal government to release it for the benefit of the mining communities in the state.

Faisal Rodríguez Valenzuela, Mexico Vice President of Torex Gold Resources and the General Manager of Media Luna, said that Guerrero has a great opportunity with the money from the Mining Fund. “The federal government is handling the issues of the Mining Fund. However, there are resources available for the year 2017-2018, which under the power mechanism established by the federal government are possible to capture and translate into benefits for the state. "

Rodríguez assured that several mining leaders in the state are willing to advise Salgado so the money is properly management and used efficiently for the benefit of communities. "The duties of the governor will be important in unlocking these resources and we will be there to support her," said Rodríguez.

Rodríguez explained that in 2019 the government canceled the Mining Fund and that although taxes are still being collected from mining companies, these are no longer used for development plans in mining communities. For this reason, Rodríguez said that the resources should be destined to these communities, especially the marginalized ones. However, he emphasized that it is Salgado's decision how to use them.

Rodríguez explained that Torex Gold has not had the opportunity to meet with Salgado. However, he is sure that there will be a good relationship with the new government and, if Salgado wants, together they can unlock the frozen resources of the Mining Fund. “We believe that Salgado will manage the resources very well. And I am even more convinced that mining can be the development compass that Guerrero needs to shine more, ”he said.

In October 2020, the senate approved the elimination of trusts and funds from the federal government. The initiative sought to relinquish control to the Ministry of Finance over resources to manage them more efficiently and ensure that mining companies really contribute to the benefit of the country. With 65 votes in favor, 51 against and two abstentions, it was ruled that 109 trusts would be reviewed, adjusted and eliminated, including the Mining Fund. The decision has affected 24 states and 127 municipalities, which depended on the Fund.

The data used in this article was sourced from:  
MBN, Outlet Minero, El Sol de Acapulco
Photo by:   Sebastian Pichler
Paloma Duran Paloma Duran Journalist and Industry Analyst