By Raúl Cortes
MEXICO CITY (Reuters) – Newmont’s Mexican division said on Wednesday it sees an “openness to dialogue” from the Mexican government amid a proposed hike in mining royalties that could potentially hamper billions of dollars in investment.
WHY IT’S IMPORTANT
The proposed increase in mining royalties could block more than $6.9 billion in investments over the next two years, according to the country’s mining chamber, adding to challenges affecting the sector such as past administrative decisions and possible legal reforms.
Newmont, a world leader in gold mining, operates the massive Penasquito open-pit gold mine in Mexico, which produces gold, silver, zinc and lead and processes an average of 110,000 tonnes of fresh ore daily.
KEY QUOTES
“There is a lot of interest from the companies, a lot of commitment to continue investing in Mexico,” said Ana Lopez, manager of the Newmont unit in Mexico, although she noted that “the best conditions in terms of certainty, opportunities and cooperation are It is also necessary that we continue to do this.”
“This and every standard that is adopted and applies to us, what we have to do is comply with it,” she said, referring to the controversial proposal to increase royalties.
Lopez also welcomed the position taken by Mexican President Claudia Sheinbaum last week, proposing a review of a legal reform aimed at banning open-pit mining, an issue that has also raised concerns in the sector.
CONTEXT
The Mexican government’s proposal aims to increase industry royalties, arguing that metal prices have risen steadily in recent years.
The mining sector was already hit under previous President Andres Manuel Lopez Obrador, who refused to grant new mining concessions, and faces new challenges under the government of his successor, Sheinbaum, as legal reforms undermine mining activities in Latin America’s second-largest economy. could hinder America. after Brazil.
(Reporting by Raul Cortes; Editing by Sandra Maler)
