Image credits: Omid Roshan
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Weekly Roundups

Mining Law Reform Continues to Cause Controversy

By Karin Dilge | Wed, 06/08/2022 - 13:50

The controversial reform to the Mining Law regarding the nationalization of lithium has caused companies to look for opportunities in other countries in Latin America. Opposition politicians filed an unconstitutionality action against the recently approved reform, which the Supreme Court declared admissible. In the meantime, a prohibition of open-pit mine permitting because of their environmental damage causes further uncertainty in the sector.

 

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Lithium Producers Seek Opportunities in Latin America

The recently approved Mining Law reform banned the possibility of new private participation in lithium and other resources deemed “essential.” It has created an uncertain environment in the Mexican mining industry that may result in the loss of investment and jobs. Within this context, mining companies have shown interest in other producing countries in the region.

Prohibition of Open Pit Mines Poses Threat to Mining Industry

Mexico’s prohibition of new open-pit mining permits poses a threat to investment and new emerging mining companies, but industry insiders continue to voice the potential benefits of such projects.

SENER will Manage State Lithium Company

President López Obrador announced that the Ministry of Energy (SENER) will harbor the new company in charge of exploiting the country’s potentially highly profitable lithium.

Previously Granted Lithium Contracts Will Be Respected: AMLO

The Mexican government announced that lithium concessions and contracts aimed at exploitation will be respected if they comply with the country’s regulation. In addition, he announced that although the state will have exclusive control over the exploitation of lithium, private sector participation is not ruled out.

Vulcan Materials Will Incur Significant Losses in 2022

Vulcan Materials announced that due to the closure of its subsidiary Sac-Tun's La Rosita property and the suspension of its customs permit, the company expects to suffer significant losses in 2022. Furthermore, Vulcan stressed that it is seeking to take action through all domestic and international legal channels to resume operations as soon as possible.

Advance Lithium Sees Opportunities After Mining Law Reform

Despite the uncertain environment caused by the Mining Law reform, Advance Lithium sees an opportunity for its lithium concessions and its innovative technology to extract the white gold.

Supreme Court Declares Mining Law Reform Lawsuit Admissible

On May 27, 2022, 43 opposition members of PAN, PRI, PRD, Movimiento Ciudadano and the recently formed Grupo Plural filed an unconstitutionality action against the recently approved Mining Law reform. President of the National Supreme Court of Justice (SCJN), Arturo Zaldívar, instructed to turn the file to one of the ministers of the court, who then had to decide whether to admit it or reject it. This Thursday, a magistrate admitted the lawsuit.

Fire Brigade Bolsters Esperanza Silver’s Community Relationship

Esperanza Silver is working to strengthen its bond with the community of San Agustín Tetlama, in the municipality Temixco, near its Esperanza mining project. Part of the company’s efforts to benefit the community is a new fire brigade that aims to tackle potentially devastating forest fires.

Mechanical Issues Cause Financial Losses for Altaley Mining

Altaley Mining released its 1Q21 financial results, unveiling significant operating and financial losses due to mechanical problems at the Campo Morado mine in Guerrero. Altaley said it expects better results in coming quarters because the issues have been resolved and the mine has started producing copper concentrate.

Grupo Mexico Project Set on Fire in Peru

Amid mounting tension between mining companies, artisanal miners and communities in Peru, Southern Copper Corporation’s Los Chancas Project of was set on fire by a rioting mob. The incident is expected to affect the performance and finances of Grupo México, Southern Copper’s parent company, especially if the drawbacks continue.

Pan American Silver Releases Alamo Dorado Mine’s Closure Plan

Pan American Silver released its closure plan for the Alamo Dorado Mine, which is intended to mitigate the environmental impact the mine caused during its operation. The company held meetings with surrounding communities to inform them of the plan’s current progress.

Vizsla Discovers New High-Grade Precious Metals Zone at Panuco

Vizsla Silver reported the results of 18 drill holes that targeted the southern extension of the Napoleon Vein at the Panuco silver-gold project in Sinaloa. The company said its exploration work has led to the identification of a new zone rich in high-grade precious metals, which will now be explored further. The results will be added to the company’s resource estimate, planned for 4Q22.

Silverton Metals to Acquire the Margaritas Gold-Silver Property

Silverton Metals has reached an agreement to acquire the Margaritas gold-silver property located in Durango. The company highlighted the opportunity because the project has great exploration potential and features advanced environmental and community permitting processes.

The data used in this article was sourced from:  
MBN
Photo by:   Omid Roshan
Karin Dilge Karin Dilge Journalist and Industry Analyst