Fresnillo CEO says Mexico's mining situation 'unfavorable'

By Kitco News / October 20, 2021 / www.kitco.com / Article Link

By David Alire Garcia

ACAPULCO, Mexico Oct 20 (Reuters) - The chief executive ofMexico's top precious metals miner Fresnillo on Wednesdaydescribed the current government's policies as "unfavorable" forthe key industrial sector.

Mexican President Andres Manuel Lopez Obrador's government
has been criticized by the mining industry for its policy of nonew concessions, as well as what have been described asunprecedented regulatory delays.

Earlier this month, Lopez Obrador further stoked industryconcerns by proposing a constitutional reform that would restrict future lithium mining, in addition toplacing similar limits on other "strategic minerals" needed forthe country's energy transition.

"We are in an unfavorable environment right now," FresnilloChief Executive Octavio Alvidrez said in a mining conference inAcapulco.

Dialogue with the government could lead to policymodifications, Alvidrez added, without going into details.

The chief executive noted that last year the mining sectorwas initially left out of the government's designation as an"essential' industry, and as a consequence was forced to shutdown for a couple months.

But after dialogue with authorities, he added, mining waslater deemed essential and mines across the country were allowedto open back up.

(Reporting by David Alire Garcia; Writing by CassandraGarrison; Editing by Sandra Maler)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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