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.
IAMGOLD Corporation (NYSE:IAG), which produces nearly one million ounces of gold each year, is looking is looking for projects capable of at least 150,000/oz of gold production per year and has two million oz of reserves.
The company made the announcement during a corporate presentation in October.
Bloomberg reported that the company is looking for transactions in the range of $300 million to $500 million. The company could go higher if the asset is compelling. The Toronto-based miner is interested in various stage projects, from exploration through to production.
The company has cash reserves to spend. If gold stays above $1,500, the company will generate 800 million in cash from current operations. IAMGOLD also sold its stake in the Tarkwa and Damang Mines to Goldfields in the spring for $667 million.
The company plans to leverage what is calls its core strengths, established relationships with foreign governments, ground presence of senior executives and deep experience in Africa and the Americas.
IAMGOLD also operates the Niobec Niobium Mine in the Saguenay Region of Quebec. Niobium is added to steel to make it stronger, lighter in weight and corrosion resistant. IAMGOLD supplies about seven percent of the world’s niobium supply.
