International mining companies have lost interest in investing in Mexico due to over-regulation and insecurity among other factors, says the CEO of Canada’s Torex Gold.
“Mining companies don’t feel comfortable in places where governments change the rules of the game,” Fred Stanford told the newspaper El Universal during the International Mining Conference in Acapulco, Guerrero.
He cited excessive regulation, difficulty to obtain permits, higher taxes, mine blockades, weak rule of law and insecurity problems due to the presence of organized crime as factors that have caused Mexico to lose its attraction as an investment destination.
Stanford said that Torex, which operates the Media Luna gold mine in Guerrero, has had to sell off some of its Mexico mining interests because investors want to reduce their exposure in the country.
He said the company is unlikely to open a new mine in Mexico any time soon but added that it “could return if the [business] environment is right.” The Toronto-based CEO said there are several countries that are currently more attractive for mining investment, citing Canada, the United States, Australia, Chile, Peru and certain African nations.
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