Mexican Mining

[Lone Clone]

Armed men attack Agnico’s La India mine in Mexico, steal gold
Ian McGugan - MINING REPORTER

The Globe and Mail
Published Thursday, Jul. 21, 2016 5:16PM EDT
Last updated Thursday, Jul. 21, 2016 5:19PM EDT

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/armed-men-attack-agnicos-la-india-mine-in-mexico-steal-gold/article31060460/

Agnico Eagle Mines Limited (AEM.TO)

Armed men have attacked a Mexican mine owned by Agnico Eagle Mines Ltd. of Toronto and stolen an unspecified amount of gold, adding to recurring concerns about the level of violence that faces miners operating in the country.

A security guard suffered a minor leg injury in the attack early Tuesday, but the La India mine in northwestern Sonora state is now back to normal operations, Agnico said in a news release. It declined further comment.

The theft echoes a similar incident last year in which heavily armed men stole 900 kilograms of gold-bearing concentrate, containing about 7,000 ounces of gold, from the El Gallo 1 mine in northwestern Sinaloa state. McEwen Mining Inc. of Toronto, the owner of the mine, estimated the stolen concentrate – enough to fill the back of a heavy-duty pickup truck – was worth about $8-million (U.S.).

Recent attacks have not just been directed at Canadian miners. Fresnillo PLC, a Mexican precious-metals producer, acknowledged this past August that thieves had stolen 4.5 kilograms of gold and silver, worth about $165,000, from its Herradura mine in Sonora.

Some miners have encountered far worse consequences. Four Mexican employees of Goldcorp Inc. of Vancouver went missing last year after leaving the company’s Los Filos mine in southwestern Guerrero state. Three of the four were later found dead.

Goldcorp said at the time that the disappearance of the employees appeared to have nothing to do with their role at the company, but the incident underscores concerns about personal safety in Mexico. The country reported 17,013 homicides in 2015, a nearly 9-per-cent increase from the previous year. Its rate of 14 murders per 100,000 people is radically higher than Canada’s 1.4 per 100,000.

Much of the violence in Mexico has been fuelled by turf wars between drug cartels.

Rob McEwen, chairman and chief executive of McEwen Mining, gained notoriety last year when he told a television interviewer that “the cartels are active down there [in Mexico]. Generally, we have a good relationship with them.”

Mr. McEwen later clarified his statement, saying he and his company were not in regular contact with criminals.

Given the furor over his remarks, Canadian mining companies with operations in Mexico now shy away from any discussion of security concerns. However, safety issues do not appear to be dampening their enthusiasm for the country, especially given the recent rise in gold prices.

Agnico Eagle acquired the La India property in 2011 and began commercial production from it in 2014. The company expects the mine to produce 100,000 ounces of gold this year.

Rodolfo Montes de Oca, the attorney general of Sonora state, said the criminals appeared to have carefully planned Tuesday’s attack, according to Mexican news reports.

He said the army and police were searching for the criminals.

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