This is bad news for miner in Mexico
New Gold to Appeal Suspension of Mexican Mining Operation 11/19 09:28 AM
VANCOUVER, Nov. 19 /PRNewswire-FirstCall/ - New Gold Inc. (NGD:$4.35,00$0.00,000.00%) ("New Gold") is cooperating with Mexican government authorities and pursuing all legal appeals after the company was notified yesterday that it must suspend mining operations at its Cerro San Pedro Mine, known regionally as Minera San Xavier ("MSX"). Although mining has been suspended, gold recovery operations of existing inventory on the leach pads are continuing.
Following a ruling by the Federal Court of Fiscal and Administrative Justice, SEMARNAT, the Mexican government's environmental protection agency nullified the mine's Environmental Impact Statement ("EIS") which was issued in 2006. PROFEPA, the Mexican environmental enforcement agency, issued the order requiring MSX to suspend mining as a consequence of the nullification of the EIS.
MSX has appealed the decision of the Federal Court of Fiscal and Administrative Justice and intends to pursue all legal avenues with respect to the recent actions of both SEMARNAT and PROFEPA. New Gold (NGD:$4.35,00$0.00,000.00%) is seeking immediate remedies. MSX has also filed a new EIS with SEMARNAT.
"This is a continuation of a decade of challenges from a group of individuals largely from outside the area who are opposed to the mining operations at Cerro San Pedro. We are taking all possible steps to respond to challenges to our legal ability to operate the mine, and believe that we will resume full operations" says New Gold (NGD:$4.35,00$0.00,000.00%) CEO Robert Gallagher.
New Gold's Cerro San Pedro Mine has been operating in full compliance with required permits and government authorizations. The mine has had excellent operational performance in 2009 and has an enviable record of meeting its environmental and social responsibilities. The company will continue to actively safeguard the environment and enhance the lives of residents of communities around the Cerro San Pedro Mine.
New Gold (NGD:$4.35,00$0.00,000.00%) will continue to provide updates on this matter.
About New Gold (NGD:$4.35,00$0.00,000.00%)
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