Timeline: Mexico mining permit decisions a mixed bag under AMLO

Mexican President Andrés Manuel López Obrador (AMLO) has pledged to put the environment and communities first in mining permitting and concessions decisions.

But key permitting rulings issued since the weeks prior to the start of his six-year term in December 2018 show a more positive story for the mining industry, with approvals greatly outnumbering rejections.

Out of 10 cases, six resulted in permit approvals, including two during November.

Three were rejected, with the company asked to resubmit a revised application in one case.

PERMIT DECISIONS - TIMELINE

1. Don Diego: Permit REJECTED

October 2018 

Project details: Phosphate sands, seabed mining, Baja California Sur state.

In a decision a few weeks before AMLO took office, environment ministry Semarnat rejected a permit for Odyssey Marine Exploration’s Don Diego phosphate sands seabed mining project for the second time, citing potential impacts on wildlife, including endangered marine species.

“It appears that the current head of Semarnat elected to deny the permit again in order to delay the issuance until after he leaves office on November 30,” Odyssey CEO Mark Gordon said at the time.

As well as a blow for Odyssey – which is pursuing an international arbitration claim against Mexico – the rejection was a setback for the broader seabed mining industry, which remains in its infancy.

2. Los Cardones. Permit: REJECTED

March 2019

Project details: Gold, Baja California Sur state

AMLO announced a decision to block Invecture Group’s US$250mn Los Cardones gold project over environmental risks.

The move, just months into AMLO’s term, was an indication of a tougher stance toward permitting and increased focus on potential negative environmental and social impacts.

Concerns had been raised about the open pit project’s water demands and location, with part of the property within the Sierra de la Laguna nature reserve.

“I say to the people of Baja California Sur, no to the mine. Why no? Because we have to care for paradise, not destroy it, and care for nature,” the president said at the time.

3. Terronera. Permit: APPROVED

June 2019

Project details: Silver, Jalisco state

Semarnat approved a key permit for Endeavour Silver’s Terronera project.

The change of soil use permit allows Endeavour to store tailings from Terronera in a dry-stack tailings facility adjacent to the proposed plant site.

Following the approval, Endeavour announced plans for a final prefeasibility study. A feasibility study is now underway.

4. La Yaqui Grande. Permits: APPROVED

Q2-Q3 2019

Project details: Gold, Sonora state

Alamos Gold received approval of an environmental impact assessment for its La Yaqui Grande project in 2Q19, and a change of use permit the following quarter.

The permits paved the way for a positive construction decision in July 2020.

La Yaqui Grande will become the main source of ore at Alamos’ Mulatos mine from 3Q22, delivering average output of 123,000oz/y gold, which will maintain total output at Mulatos at around 150,000oz/y.

While La Yaqui Grande is a brownfield project, which will greatly lessen potential environmental and other impacts, the US$137mn investment will involve construction of a new heap leach pad and the installation of a crushing circuit from the El Chanate asset.

5. Pilares. Permit: APPROVED

October 2019

Project details: Copper, Sonora state

Southern Copper confirmed it had submitted an environmental permit application for Pilares in February 2019, and said in October last year that the permits were approved.

The US$159mn project is expected to produce 35,000t/y copper in concentrates, with output currently scheduled to begin in 2022.

6. San Antonio. Permit: REJECTED

November 2019

Project details: Gold, Baja California Sur state

Semarnat rejected an environmental permit for Argonaut Gold’s San Antonio gold project in Baja California Sur state.

The primary reason was a zoning issue, which the company said had been resolved through a 2016 supreme court ruling following a previous permit rejection.

Argonaut later announced a US$111mn writedown of the book value of San Antonio due to the permit rejection.

7. Cerro del Gallo. Permit: REVISED

January 2020

Project details: Gold, Guanajuato state

Argonaut confirmed that Semarnat had informed the company it will not approve an environmental and change of soil use permit application for Cerro del Gallo in its current form.

The company said it planned to resubmit the application with minor revisions.

8. Camino Rojo. Permit: APPROVED

August 2020

Project details: Gold, Zacatecas state

Orla Mining said Semarnat approved an environmental impact statement for the Camino Rojo project, allowing the company to move ahead with construction.

First production is expected in 2021.

9. Rodeo. Permit: APPROVED

November 2020

Project details: Gold/silver, Durango state

Golden Minerals confirmed it is on track for first production at the Rodeo project in January 2021 after receiving final environmental permits.

10. La Fortuna. Permit: APPROVED

November 2020

Project details: Gold, Durango state

Minera Alamos said an environmental permit for the La Fortuna gold project was approved by Semarnat.

The company how has all key federal approvals necessary to construct a commercial scale mine, it added.