SEMARNAT Challenges Minera Cuzcatlán's EIA Expansion After Typo

Fortuna Silver Mines announced that its Mexican subsidiary Compañía Minera Cuzcatlán received a resolution from the Ministry of Environment and Natural Resources (SEMARNAT) on its environmental impact assessment (EIA), noting that the ministry is re-evaluating the 12-year extension granted to its San José Mine in Oaxaca after a court rectified a suggested SEMARNAT typo that changed the extension to two years.

On Jan. 2, 2023, Minera Cuzcatlán received the resolution from SEMARNAT that cancels the extension of its EIA and announces that a new analysis of the case will be carried out. SEMARNAT argued that the permit should be ruled invalid since it lacks the authority to grant an extension for more than half of the company's EIA extension request. What is more, SEMARNAT did not sufficiently analyze to verify the company's compliance with environmental issues.

Jorge A. Ganoza, President and CEO, Fortuna Silver Mines, stressed that it is “perplexing” that the company must challenge SEMARNAT's resolution since the authorization was confirmed by the Federal Court, which ruled against SEMARNAT's initiative. In addition, Ganoza highlighted that since President López Obrador took office, the San José Mine has been audited annually by the Federal Environmental Attorney's Office (PROFEPA) and the National Water Commission (CONAGUA), both of which have confirmed the company's compliance with its environmental obligations. 

The company said that SEMARNAT's resolution is unfounded, as the ministry does have the authority to grant EIA extensions for 12 years. In addition, the EIA extension granted in 2021 confirmed that the company's operations complied with regulations. Minera Cuzcatlán announced that it will pursue all the legal protection within its reach such as by initiating a legal proceeding against SEMARNAT to challenge and revoke its ruling.

“It is incomprehensible that we find ourselves again having to contest a controversial resolution issued by SEMARNAT. Minera Cuzcatlán is diligently working with the government authorities to resolve this matter and is concurrently pursuing all pertinent legal protection,” said Jorge A. Ganoza, President and CEO, Fortuna Silver Mines.

The original permit was granted to the company in 2009, after SEMARNAT authorized the construction, execution and maintenance of the San José Mine until October 2021. In May of that year, the company applied to extend its permit for an additional 10 years. This extension is a standard procedure, often granted when companies comply with certain requirements. Nevertheless, the application was rejected. As a result, the company could only continue operating thanks to a temporary injunction from a federal court.

After months of calls to attend to the case, the company received the approval of SEMARNAT for the expansion of its San José mine. However, Minera Cuzcatlán was notified that its EIA extension contained a typographical error: instead of a 12-year extension, SEMARNAT granted two years. A federal court ruled in favor of the company, but the state’s decision to challenge this ruling means the mining operation once again faces uncertainty.