Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Randgold Resources’ (LON:RSS) said Monday a workers’ strike at its Tongon gold mine in the Ivory Coast had brought production to a halt after government-led negotiations broke down.
The Africa-focused gold producer noted it continued to work with local authorities and the workers’ unions to resolve the standoff, but didn’t provide any details about what the strife was about.
Same mine was also hit by on-and-off strikes earlier this year.
Tongon mine, which produced 288,680 ounces of gold last year, was also hit by on-and-off strikes in April, causing the company to say it wasn’t longer sure the operation would achieve its 290,000-ounce production forecast for this year.
Two of Randgold’s gold mines in neighbouring Mali have also been hit by strikes this year and a long-running dispute with the government over a claim of as much as $200 million in back-taxes.
Investors seemed mostly unaffected by the news as shares were trading in London only 0.55% lower to 5,456p by 2:46 p.m. GMT. The stock, however, have performed poorly in the last six months as a results of labour actions at Randgold’s mines and the adoption of an extreme tax hike in the Democratic Republic of Congo, where it operates the Kibali gold mine. As a result, Randgold’s shares have fallen about 30% so far this year.
