Security weighing on mining in Mexico’s Guerrero state ( – August 29, 2019)

Security concerns are continuing to weigh on mining investment in Mexico’s Guerrero state, despite decreasing violence.

Trouble surged in recent years as rival drug cartels fought for dominance in the state, which is a major supplier of heroin to the US, as well as Mexico’s third biggest gold producer.

While violence has subsided – the authorities registered 946 intentional homicides in the state in January-July, down from 1,343 in the same period last year – the lack of security continues to pose problems for the mining industry, contributing to a mine suspension and undermining exploration spending.


The state has become a hive of mining activity in recent decades, with investment focused on the Guerrero gold belt – a 30km stretch in the heart of the state hosting discoveries amounting to around 35Moz gold.

The belt’s key mines, Torex Gold’s El Limón-Guajes (ELG) and Leagold Mining’s Los Filos, rank among Mexico’s top gold producers. While the companies have not highlighted security issues in recent quarters, Telson Mining indefinitely suspended its Campo Morado polymetallic mine at the north end of the belt earlier in August.

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