The mining financial environment was heated up this week and not for good. Morena’s announcement of new mining policy proposals, including community consultation for allocating mining concessions, caused mining companies to take a hit on the BMV. In the meantime, a South African community celebrated its legal victory in implementing a similar communitarian consultation before granting concessions. Also, the Chilean Ministry of Mines signed an agreement to foster mining activity in the Tarapaca region, while Minera Alamos got a step closer to developing La Fortuna gold project in Mexico.
The World Bank Group is a unique global partnership, with five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. It has 189 member-countries, staff from more than 170 countries and offices in over 130 locations. Mexico Mining Review spoke to Former Practice Manager, Extractive Industries Unit, Paulo de Sa about how the mining royalty process in Mexico can be improved.
Curious about the week in mining? Dig in!
Morena and Mining Policy:
- Morena to raise the standards for assigning mining concessions, including social and environmental impact assessments. Non-compliant companies will lose their concessions.
- New Community Consultation Legislation Hits Mining Stocks.
- The news hit Peñoles, Grupo México and Frisco the most financially.
- BMV is not the only victim of the industry’s fears of new mining restrictions imposed by the incoming administration. FTSE felt the hit too, with Fresnillo becoming one of the 100 sharpest fallers of the year.
Driving the Mining Industry Up:
- The Ministry of Economy reported growth in mining FDI. The first three quarters of the year received US$894 million compared with the US$261 million the same period in 2017.
- Chile’s Minister of Mining, Pablo Terrazas, signed agreement with local authorities and mine representatives to bolster the industry’s activity in the Tarapaca region.
- Minera Alamos received environmental permit for the Fortuna project in Mexico. Still early in the permitting phase, this was a key step in ramping the gold project up to production.
- While Morena seeks community consultation before granting mining concessions, South African activists won a landmark victory in the country’s high court pursuing the same goal.
- The Rio Tinto project, developed by Atalaya Mining, was reported to have expanded its estimated copper reserves by 30 percent and its lifecycle up to 2032.
- Infill drilling hit on more high-grade gold for Marathon Gold’s project in Newfoundland.
For more industry news, follow our blog!