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.
The US Department of the Interior, Bureau of Land Management issued the final Record of Decision (ROD) for the Environmental Impact Statement (EIS) of the Hollister gold mine in Nevada on Tuesday.
The ROD, first issued on March 31, is a significant milestone for the development of the Hollister project owned by Waterton Global Mining Company, as it is the final stage of EIS approval. According to a statement, this will authorize additional area for surface exploration, reducing operational and regulatory uncertainty for the project and extending the proposed project life.
The EIS application process was initiated in 2008 by the previous owner of the Hollister and was continued by Waterton Global who acquired Hollister in a bankruptcy auction in May 2013.
Waterton Global paused production and laid off the majority of its staff last November to “focus on resource definition drilling to enhance asset value and extend the life of the mine.”
“This significant permitting milestone will allow additional capital investment that will increase the viability of the project and lead to long-term value creation,” said Isser Elishis, managing partner and chief investment officer of Waterton Global Resource Management.
The Hollister mine is located in northern Nevada, at the intersection of the Carlin Trend and the Northern Nevada Rift, one of the most prolific gold mining regions in North America. The mine has been in production since 2008 and has had a historic production rate of 350 to 400 ore tonnes per day, producing an average of 80,000 oz of gold per year.
Waterton Global Mining Company is a Toronto-based private investment company.
