Mexico Needs To Stop Gang Violence Impacting All Mining Companies - McEwen Mining
(Kitco News)- The Mexican government needs to step up its efforts to combatthe growing cartel and gang violence sweeping through the country, according toRob McEwen, CEO of McEwen Mining (NYSE: MUX, TSX: MUX).
While McEwen mining’s project hasn’t been adversely affectedby the recent rise in criminal activity, the company has not been immune tothese issues. Two years ago armed robbers stole 7,000 ounces of gold from itsEl Gallo property in Mexico’s Sinaloa State. In an interview with Kitco NewsMcEwen said that since then the company has worked closely with state police tocreate a safe work environment.
While the company’s Mexican projects haven’t been disrupted,McEwen noted that the level of violence does create some uncertainty for futuregrowth.
“This kind of violence impacts all mining companies,especially when it comes to finding talent. Nobody wants to work in an areawhere their life or property is under threat,” he said. “The Mexican governmentneeds to step up and get this problem under control.”
McEwen said that his company’s Mexican operations areslightly different, compared to other producers within the country because theyare in a transition period as ore mining at El Gallo comes to an end. The companyis looking to use the property to support its developing silver project. McEwenadded that the futures plans they have for El Gallo could extend the company’sMexican projects by an additional 10 years.
McEwen’s comments come after Pan American Silver Corp (NYSE: PAAS, TSX: PAAS). saidit is cutting back its operations at its mine in northern Mexico due to safetyconcern.
But it’s not just the mining sector that is feeling theeffects of cartel violence. The world’s biggest Coke bottler, Coca-Cola Femsa,recently shut down a 160-employee distribution center in southwestern Guerrerostate.
“But it’s more than just a problem for corporations,” said McEwen. “Itis terrible that the Mexican people have to deal with this violence.”
By Neils ChristensenFor Kitco News
Follow neils_C
nchristensen@kitco.comwww.kitco.com 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.