Mexico City. – 60% of the gold extracted in Mexico is in the hands of Canadian mining companies, meaning that 6 out of 10 mines belong to consortia in the North American country. Today.
The companies are Torex Gold, Agnico Eagle Mines, Equinox Gold, Alamos Gold, Pan American Silver and First Majestic, information from the Ministry of Economy (SE) indicates.
The memo signed by Sergio Ocampo states that in the meantime, two are controlled by Fresnillo, a Mexican mining company, and two other US-owned companies: Coeur Mining and Newmont.
The six mines controlled by the Canadians annually extract about 35,000 kilograms. 60 percent of total gold; Meanwhile, Mexicans take 17,300 kilograms, 30 percent, and American women 6,800 kilograms, 10 percent of the total, according to official information.
Mexico has not currently granted concessions to foreign mining companies, but the previous government granted about 75 percent of mining concessions in other countries, mostly from Canada, according to SE.
Canadian mining company First Majestic is seeking international arbitration in a tax dispute with Mexico
Canadian mining company First Majestic Silver Corp. said on Tuesday that it has started an international arbitration process against the Mexican government under the North American Free Trade Agreement (NAFTA), amid a tax dispute with the authorities of the Latin American country.
First Majestic has submitted that it will appeal through all legal channels, including in the international arena, an accusation of alleged tax evasion, which Mexico has calculated at 11,000 million pesos (approximately $ 544 million).
“Despite repeated attempts by the company to encourage the Mexican government to enter into good-faith negotiations to resolve the dispute, the government refused to participate,” the Canadian company said in a statement in Vancouver.
The Mexican Economy Ministry, which is responsible for managing the country’s trade agreements, did not immediately respond to a request for comment.
The administration of President Andres Manuel Lopez Obrador, launched in 2018, has launched a campaign against tax evasion by large corporations, including multinationals, and has threatened criminal charges and even imprisonment if the companies fail to pay their outstanding contributions.
The mining company clarified that it had submitted the application to the International Center for Settlement of Investment Disputes (ICSID), on behalf of itself and its subsidiary in Mexico, Primero Empresa Minera (PEM), “based on Chapter 11” of NAFTA, which was in effect until June 2020.
First Majestic considered the government’s actions “inconsistent” with a prior agreement of income and tax rates for PEM for the fiscal years 2010 to 2014, which according to the company will remain in effect until the local judiciary decides otherwise.
The shares of the mine did not show much change after the announcement and on Tuesday rose about 4% after strong declines in the past three sessions.