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.
Shares in Mandalay Resources Corp (TSX:MND) were down Friday morning after the Canadian miner revealed it had suspended operations at its Cerro Bayo underground silver-gold mine in Chile, following an incident that cause the mine to flood.
Two employees were working in the Delia 2 ramp section of the mine at the time of the incident and remain trapped, the firm said. While rescue efforts began immediately, they have been hindered by the extent of the flooding.
“We are profoundly saddened by this unexpected event,” said President and Chief Executive Officer Mark Sander. “We will keep all our stakeholders informed as the situation unfolds at the mine and as we determine the cause.”
The company stock was down 1.79% to 55 cents on the news, which takes the year-to date value loss to more than 31%.
Today’s incident follows a contractor fatality at the same mine in September last year, which lead to an investigation and operations halt.
Cerro Bayo mine is located in southern Chile, just inside the border with Argentina.
