Mexico's Newmont optimistic about talks on mining royalties hike
MEXICO CITY - Newmont's Mexican division said on Wednesday it sees an "openness for dialogue" from the Mexican government, amid the proposed increase in mining royalties, which could potentially hinder billions of dollars in investments.
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 the challenges impacting the sector such as previous administrative decisions and potential legal reforms.
Newmont, a global leader in gold mining, operates the huge Penasquito open-pit gold mine in Mexico which produces gold, silver, zinc and lead, and processes an average of 110 000 metric tonnes of fresh ore daily.
"There is a lot of interest from the companies, a lot of commitment to continue investing in Mexico," Ana Lopez, manager of Newmont's unit in Mexico said, although she noted that "the best conditions in terms of certainty, opportunity and collaboration are also necessary for us to continue to do so."
"This and any norm that is approved and applies to us, what we have to do is comply with it," she said, referring to the controversial royalty increase proposal.
Lopez also welcomed the stance taken by Mexican President Claudia Sheinbaum last week, proposing a review of a legal reform which sought to ban open-pit mining, an issue that has also generated concern in the industry.
The Mexican government's proposal aims at increasing royalties from the industry, arguing that metals prices have grown steadily in recent years.
The mining sector was already impacted under previous President Andres Manuel Lopez Obrador, who refused to grant new mining concessions, and it faces new challenges with the administration of his successor, Sheinbaum, as legal reforms could hinder mining operations in Latin America's second largest economy, after Brazil.
Comments
Latest Multimedia
Latest News
Showroom
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
