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.
Rio2 Limited (TSXV: RIO) says its Chilean subsidiary has received the principle permits required to begin construction at its Fenix gold project. The permits cover mining methods, processing plant, waste dumps and stockpiles, and the closure plan.
The project is located in the Maricunga gold belt in the Atacama region.
Fenix will be a large, gold oxide heap leach operation with a measured and indicated resource of 398.2 million tonnes at a grade of 0.38 g/t gold, containing almost 4.8 million oz. of gold. The inferred resource is 90.8 million tonnes at 0.33 g/t gold, containing 959,000 oz.
With the necessary permits in hand, Rio2 can complete its debt and equity financing for construction, said president and CEO Andrew Cox.
Rio2 says Fenix will need an investment of C$316.8 million ($235 million) for both initial and sustaining capital. The project will employ at least 1,200 people during construction and 800 people during a 17-year operational phase.
A run-of-mine heap leach is planned, so no crushing or tailings storage facilities are required.
