Greater production from Grupo Mexico’s mining division increased third-quarter base metals sales, but precious metals sales declined.
RENO (MINEWEB) – Grupo Mexico warned Monday that Mexico’s proposed 7.5% tax on mining earnings–in addition to a 0.5% tax on precious metals revenue and the elimination of the immediate deduction on exploration expenses–“will jeopardize investment in current and future projects in the sector, along with the consequent effect on jobs and infrastructure.”
“If approved, we will conclude our current investment program of US$3.5 billion for 2013 and US$1.5 billion for 2014,” said the company.
“Nevertheless, we will be obliged to re-direct our future investment program of US$5.3 billion for the coming years, which is primarily allocated to Mexico, and analyze opportunities in countries where the investment conditions are more favorable, such as the US, Canada, Peru or Chile which offer a stable tax regime with stimuli and low energy costs,” Grupo Mexico advised.