AMLO blocks US$250mn mining project, axes consultation

Mexico's President Andrés Manuel López Obrador (AMLO) will block Invecture Group's US$250mn Los Cardones gold project due to environmental risks. He also scrapped plans, announced last September, for a public consultation to determine the fate of the Baja California Sur state project.

The open pit project has stirred up controversy in the state, a major tourist destination, due to potential impacts on wildlife and water resources. Part of the project lies within the Sierra de la Laguna nature reserve.

"A few months ago I was in [the city of] La Paz and was asked to define my position regarding the mine [Los Cardones project]," AMLO said in a speech.

"Now the time has come, and 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."

Environmental factors are particularly important given the role of tourism in the state, while water resources must also be protected, he added.

In an attempt to head off criticism over scrapping the Los Cardones consultation, despite polls on other investments, AMLO said previous votes were held on projects started by the previous administration, such as the canceled Mexico City airport.

"This project [Los Cardones] falls to me, and I say no. And I have the authority," AMLO said, without giving further details.

Invecture Group did not immediately respond to an emailed request for comment.