2 mining cities deemed the most unsafe in Mexico

Two major mining jurisdictions in Zacatecas state top the latest national ranking of Mexican cities with the highest perception of crime among the population: Fresnillo and Zacatecas.

National statistics bureau Inegi's quarterly urban public security survey shows that some 92.8% of residents of Fresnillo over 18 years of age believe it is unsafe to live in the city, while 91.7% of those living in Zacatecas consider this to be the case.

Independent risk and security management consultant Eduardo Ordóñez (pictured) says perception statistics should be differentiated from risk assessments, which include homicide and robbery rates, as they may not entirely reflect reality.

Nevertheless, Ordóñez says Zacatecas state is not safe for either residents or companies for various reasons, including high poverty rates and its strategic location in north-central Mexico, which has become a battleground for organized crime.

“There are three or four cartels operating in the area that are constantly moving …. The Jalisco Nueva Generación Cartel (CJNG) is established, the Cartel del Noreste is moving in, the Sinaloa Cartel is moving in, and there are some [guys] from San Luis Potosí who call themselves Los Alemanes,” Ordóñez told BNamericas.

"But why are they there? Zacatecas is one of the poorest states in the country and has some of the worst infrastructure. The highways to Zacatecas are terrible – [federal highway] 57 that connects to the northern states that border the United States is in extremely poor condition – but they're strategic for crime,” he added.

The security expert explained that the highways in Zacatecas are some of the only ones that connect to two of the most important border crossings into the US and are therefore used by by gangs trafficking both people and drugs.

"The cartels are fighting over the cities that are on the main highways to the north,” Ordóñez said.

Of Mexico's 32 states, Zacatecas is ranked 28th in its contribution to the national GDP, with just 1% of the total, according to the most recent data from Inegi.

The low importance of the state to the legal Mexican economy contrasts with the fact that it is also the country's biggest producer of silver production and even displaced Sonora as the top gold-producer in the first five months of the year, according to revised figures from the statistics bureau.

Mines such as the Peñasquito gold operation, owned by the US company Newmont, and the big silver producers Fresnillo and Saucito, owned by Fresnillo, are some of the most important ones in the state.

Mexico's mining chamber (Camimex) recently complained that the high levels of crime in the country imply additional production costs of up to 10% for mining companies in terms of thefts and extra expenses on security measures.

In recent years, organized crime has diversified from drug and migrant trafficking into activities such as robbery and extortion, increasingly focusing on companies and particularly those involving in mining precious metals and other minerals.

Ordóñez explained that unlike renewable energy companies, whose assets like solar panels are not as attractive to criminal groups and whose operations are smaller, the mining sector is a more common target for crime, partly because they operate in remote areas.

“In mining [crime] is a problem because they work with materials such as gold and silver, as well as construction materials such as gravel and sand, which are very attractive. You can demand fees from them for that. You can take away their control and force them to sell you material to launder money," said the consultant.

As an example of the threats to firms, Ordóñez pointed to the armed takeover of one of First Majestic's gold and silver mines on the border between Zacatecas and Jalisco states in 2017, allegedly by the CJNG, eventually forcing it to halt operations in 2019 and giving gave rise to an ongoing dispute to restart activities.

“They can get into your mine and take control ... but they can also steal materials, such as gold bars. Theft of materials is done by smaller groups, from helmets to pickaxes and more specialized machinery,” said the consultant.

He also highlighted the violence generated by heavily armed gangs in Zacatecas, mentioning frequent confrontations between criminals and those transporting company materials on highways, which have resulted in employees being murdered.