Supreme Court Ruling Favors Almaden MineralsBy Karin Dilge | Wed, 05/04/2022 - 17:32
Although legal uncertainty remains an issue in the Mexican mining market, many companies keep on boasting strong production results. What is more, the Supreme Court ruled in favor of the Canadian company Almaden Minerals, which was facing two possible concession cancellations. Furthermore, lithium deposits were found in Morelos, but their exploitation remains unlikely because of lacking shortage.
Ready for more? Here is your weekly roundup!
President López Obrador will instruct the Ministry of Environment and Natural Resources (SEMARNAT) to take legal action against Calica, a subsidiary of Vulcan Materials, after the government claimed the company did not comply with the agreement the parties reached last month.
Almaden Minerals has provided an update regarding the cancellation of its Ixtaca concessions following the final decision of the Supreme Court of Justice of the Nation (SCJN) on the case. The court ruled in favor of the company, reversing the decision to cancel its two concessions and forcing the mining authorities to carry out a proper Indigenous consultation process. Almaden said that although the company has not yet been formally notified of the SCJN's final decision, it hopes to be informed soon.
The Mexican Geological Service (SGM) confirmed the existence of lithium deposits in Morelos, making it the 18th state on the list of potential states where the government could produce the white gold. Although the authorities said that some lithium deposits could be exploited this year, experts say that due to the lack of investment this prospect is unlikely.
A week after Congress approved the reform of the Mining Law, the International Chamber of Commerce (ICC) warned that if Mexico revokes an already granted concession, it must pay compensation to investors in accordance which international treaties the country has signed.
The World Gold Council reported that gold is expected to remain strong in 2022 due to its increasing use as a destination for safe investment in the current uncertain geopolitical and economic environment. Mexico, being one of the main gold producers in the world, can benefit from this bullish outlook. However, an expected decline in domestic production could hamper its market opportunities.
The Silver Institute has released its 2022 World Silver Survey, showing that the metal is expected to hit a record high in 2022 due to its growing uses in sustainability-minded projects. However, experts warned that the growing demand will lead to a greater supply deficit. Despite being one of the countries with the greatest potential, Mexico may not benefit much due to restrictive government policies.
In his daily press conference, President López Obrador announced that Mexico will participate in a meeting with Latin American lithium-producing countries to exchange experiences and knowledge in the mineral’s exploitation. This comes after the reform to the Mining Law, which left the mineral almost entirely in the hands of the State.
MAG Silver has provided a positive update on its Juanicipio project and its production volume during 1Q22. In addition, the company highlighted that the start-up of the mill is on track to be delivered in 2H22. Therefore, the Juanicipio processing plant is expected to significantly increase its capacity soon.
Guanajuato Silver announced its 4Q21 financial results, as well as those for all of 2021. The scores come from the wholly-owned El Cubo Mine Complex and the Pinguico Project, both located in Guanajuato. The results highlight the company’s transition from an exploration-focused company to a full-fledged producing company.