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 western Canadian Province of British Columbia approved a 5-year extension of Seabridge Gold’s (TSX: SEA) (NYSE: SA) Environmental Assessment certificate for the KSM project, which has been described as one of the largest undeveloped gold projects in the world, measured by reserves.
Located in north-western British Columbia, KSM has proven and probable reserves of 38.2 million ounces of gold and 9.9 billion pounds of copper
The original certificate was issued for an initial 5-year term on July 29, 2014, following a comprehensive independent environmental assessment review.
The new certificate’s terms mirror those of the previous one and establish that the Toronto-based miner has to commence construction of the project before July 29, 2024. The certificate was issued to the company after it carried out an engagement process with the Nisga’a, Tahltan and Gitxsan Nations.
From 2013 to 2016, Seabridge targeted higher grade zones beneath KSM’s near surface porphyry deposits, resulting in the discovery of Deep Kerr (2013) and the Iron Cap Lower Zone (2014).
“We are pleased that our EA Certificate has been renewed until 2024 under the same terms and conditions, reaffirming the Government of British Columbia’s support for KSM and the robustness of the original 2014 EA,” Seabridge Chairman and CEO, Rudi Fronk, said in a media statement. “The extension highlights that KSM is a well-designed, environmentally responsible project offering significant economic benefits for British Columbia and Canada. The receipt of the extension allows us to continue our engagement with prospective joint venture partners for KSM.”
An updated Preliminary Feasibility Study estimates that the property’s proven and probable reserves total 38.8 million ounces of gold and 10.2 billion pounds of copper.
At present, Seabridge reports advancing exploration programs to produce major improvements in the economic and environmental parameters of the project.
