Order to return 600 hectares at the giant Penasquito gold and silver site put on hold...
GOLDCORP Inc, the world’s leading producer of gold, has received a reprieve from a court order telling it to return part of Mexico's largest open-pit site to local farmers.
A federal judge in Mexico halted the order from a district court regarding land at Penasquito, Mexico’s biggest gold mine. The fifth largest silver mine in the world, Penasquito is also Vancouver-based Goldcorp's largest mine by revenue.
Local farmers were meant to regain some 600 hectares of land at Penasquito, after the district court voided Goldcorp’s temporary rent, the court clerk said.
Land disputes are one of a number of problems afflicting gold mining worldwide. A recent report from Ernst and Young, one of the largest professional service firms, points to rising concerns about capital financing, as well as local politics and pending "conflict mineral" legislation.
Furthermore, says the 2012 Gold Price Report by consultants PwC, out of 99 mining strikes worldwide between 2009 and 2012, most were at gold mines, and 70% were related to demands for higher wages.
“Appeasing the various segments of society will be a phenomenal challenge," writes Michelle Smith, a mining analyst and researcher at Investor News.
"Companies are likely to find it beneficial to prioritize developing policies that avoid and reduce the perception of risks associated with gold mining”, she concludes.