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.
Adriatic Metals (LSE: ADT1; ASX: ADT) has “an interesting few years ahead,” says the company’s managing director and CEO Paul Cronin, as the junior explorer progresses its brownfield projects in Bosnia-Herzegovina and Serbia.
In late January Adriatic was granted an exploitation permit for its Veovaca project near Vares in Bosnia-Herzegovina, 50 km north of the capital, Sarajevo.
“These are very exciting times for us,” Cronin said in an interview. “This is only the second exploitation permit to be issued by the government in the last 30 years. So, not only is it significant for us, but it’s also significant for the government of BiH [Bosnia-Herzegovina].”
Once granted, Adriatic will be able to apply for an urban planning permit on Rupice and then an exploitation permit
The permit, issued by the Federal Ministry for Energy, Mining and Industry, initiates the project’s formal exploitation period, valid for 30 years. The permit will allow Adriatic to complete detailed engineering work for the Veovaca open pit mine, flotation plant, and tailings management facility, with construction slated to start in the third quarter of 2021.
In another significant step forward for the company, the Federal Ministry of Environment and Tourism on Feb. 9 issued a positive Record of Decision (RoD) for its Rupice project, 12 km northwest of Vares. Barring any objections, the environmental permit for Rupice will be issued within 30 days of the issuance of the RoD.
Once granted, Adriatic will be able to apply for an urban planning permit on Rupice and then an exploitation permit in a process similar to that for Veovaca.
Both Veovaca and Rupice are past-producing polymetallic deposits that form part of the company’s flagship Vares project, which the company acquired out of bankruptcy proceedings in 2017 for $760,000.
