New Electricity Law Could Hurt Industry: CAMIMEXThu, 03/11/2021 - 14:30
This week, Mexico’s mining industry aired some disagreements with the country’s authorities as a Canadian silver giant requested arbitration from the World Bank to settle a debt, while local industry representatives warned that the new Electricity Law could hurt the sector. On the other hand, Mexico’s treasury indicated that the sector paid less taxes in 2020 than the previous year. Mexican cement giant CEMEX announced the expansion of its Caribbean operations, while Canadian Advance Gold Corporation plans to continue expanding in Mexico.
In international news, the 89th edition of the Prospectors & Developers Association of Canada (PDAC) took place from March 8 to 11. The fully virtual event hosted major industry players and representatives from many governments.
Silver miner First Majestic accuses Mexico of ignoring its obligations to foreign investors and requested arbitration from the World Bank to address a dispute with local authorities. Mexico’s government billed First Majestic US$132.1 million in overdue taxes.
Fernando Alanis, President of the Mining Chamber of Mexico (CAMIMEX), warned that the new Electricity Law could reduce the country’s competitiveness for the mining industry. “With this change in the law, we know that (the cost) of electricity will increase and electricity represents about 20 percent of costs in the mining industry,” said Alanis to Forbes Mexico.
Mexico’s Treasury (SHCP) reports that mining companies operating in Mexico paid 50 percent less taxes during 2020 than in the previous year, reports Milenio. The five groups that operate the most important mines in the country reported utilities amounting to US$15 billion during the year.
CEMEX plans to expand its operations in the Dominican Republic by reactivating a production line at its plant in San Pedro de Marcoris. This move would allow the company to expand its total production in the country by 33 percent.
Canadian Advance Gold Corporation plans to buy 13 pieces of land in the desert between San Luis Potosi and Zacatecas, which might contain lithium, potassium and boron deposits.
This week was the 89th edition of the Prospectors & Developers Association of Canada (PDAC), a leading mineral exploration and mining convention. The event took place online, giving attendees a virtual platform to view exhibit halls, network and attend conferences.
Mining investment in Peru is expected to reach US$5.2 billion in 2020, said the Minister of Energy and Mines during his presentation at PDAC. During 2022, the country’s mining industry is expected to receive US$6 billion, he added.