Mitch Krebs: Mexico Is Turning Pro-Mining Again #mexico #mining #miningstocks #silver #gold #finance

Key Concepts:

• Mining Operations in Mexico
• Permitting Processes
• Political Administrations and Mining Policy
• Community Relations
• Workforce Morale
• Underground vs. Open Pit Mining

Mining Operations and Political Climate in Mexico

The discussion centers on the decision to add a second mine in Mexico, building upon the existing operation at Palo, which has been active since 2010. A significant factor influencing this decision was the political transition in Mexico, specifically the departure of the AMLO administration and the subsequent arrival of the Shang Bomb administration in October, coinciding with the announcement of the acquisition. The core question was whether the mining environment in Mexico would improve, worsen, or remain stagnant.

Improvements in Permitting and Operations under the New Administration

As of the current time, the situation has demonstrably improved, particularly in Sonora and for underground operations like Palo and Losas. A key piece of evidence for this improvement is the permitting process. Permits that had been stalled for six years under the AMLO administration, without any progress, have now been issued within the first six to eight months of the new administration. This indicates a more favorable and efficient regulatory environment for existing underground mining projects.

Lingering Concerns and Positive Aspects

While progress has been made, some uncertainties remain, specifically concerning open-pit mining and its associated permits. However, for underground operations focused on silver and gold extraction, where strong community relations and a satisfied workforce are already established, the current operating conditions are significantly better than they were under the previous administration. This suggests a positive shift in the government's approach to established, well-managed mining projects with good local engagement.