Miners threaten to leave MexicoDissatisfaction from miners has not only been rife, but also quick — in some cases it began even before the tax was given the go-ahead.
For instance, the Financial Times reported a few days prior to its approval that while Grupo Mexico, the world’s third-biggest copper producer, still plans to invest $3.5 billion and $1.5 billion in Mexico in 2013 and 2014, respectively, it “will be obliged to redirect its future investment programme of $3.5bn for the coming years.” The company intends to look at opportunities in the United States, Canada, Peru and Chile instead.
Similarly, Endeavour Silver’s (TSX:EDR) chief executive, Brad Cooke, is quoted by the publication as saying, “the combination of the government tax take and essential reinvestment needed to sustain mines would take about 90 per cent of our profits. It takes Mexico from one of the more attractive jurisdictions worldwide to one of the worst.”
Goldcorp (TSX:G) also said around the same time that it would likely rethink its involvement in Mexico if the tax was passed.