Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Fortuna Silver Mines (NYSE: FSM) (TSX: FVI) has had the 12-year environmental impact authorization (EIA) for its San Jose mine reinstated after Mexico’s federal court ruled in favour of the company in its legal dispute with SEMARNAT, the nation’s environment ministry.
In January, Fortuna received written notice of a resolution issued by SEMARNAT which annulled the 12-year term of the EIA given to the silver-gold mine, located in Oaxaca. The resolution also claims that SEMARNAT is required to re-assess the 12-year EIA extension.
The company subsequently initiated legal proceedings with the court to contest and revoke the EIA annulment. It also sought to obtain a permanent injunction to protect its operations pending the decision of the court, which was granted late January.
In its ruling on Monday, the Federal Administrative Court dismissed the allegations contained in the annulment resolution. In November 2022, Fortuna also won a favourable court decision after SEMARNAT claimed that it had made a typographical error in the EIA extension, and that the correct term was two years instead.
The Canadian miner said San Jose is now in full compliance with all material environmental laws and continues to operate under the terms of the EIA. The decision of the court is subject to appeal by SEMARNAT, and if appealed, the permanent injunction granted to the company will remain in effect.
Located in the Taviche mining district, the San Jose mine has been in commercial production since September 2011. Last year, the mine produced 5.8 million ounces of silver and 34,124 ounces of gold, both within Fortuna’s guidance.
