The Latest Fears Surrounding Mexican Mining

April 27, 2015

 

Last month, four workers at a mine in Mexico were reported missing in what authorities believe may well have been a kidnapping.

 

The workers worked at Goldcorp’s Los Filos mine. Los Filos is located in the southern state of Guerrero, Mexico’s fifth-largest gold producing region. Los Filos produced 258,700 ounces in 2014. Greater numbers are expected throughout the rest of 2015.

 

It’s also an area known for violence.

 

This incident took place about a month after a week-long suspension of construction at one gold project mine after about 13 people were kidnapped, including mineworkers, a female custodian and a contractor. 11 of those kidnapped were freed with the help of the Mexican Army.

 

It obviously makes for a dangerous and unsettled work environment. A 21-month construction project at that gold project mine has been delayed until at least later this year because of the difficulty of getting contractors to agree to work in the area. The contractors have obvious concerns about security.

 

Another mining operation halted work at a gold-silver-zinc-copper mine in Guerrero in February because of the "systematic intimidation of workers". Guerrero also has the highest homicide rate of any state in Mexico.

 

It remains to be seen how this continues to impact mining operations in Mexico but it helps underline why the mining industry is always looking for areas of stability.