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Mexican Mining Industry Threatened by Drug Cartels

The Mexican mining industry faces a new threat from drug cartels. According to the Mexico Mining Chamber some mining firms engaged in exploration in remote areas have shuttered some projects due to the rising costs of security. The isolated mountain regions in Mexico are where drug traffickers grow marijuana and heroin poppies.

The cartels have been known to extort, kidnap, attack and sell drugs to workers who are involved with the mining exploration processes in these areas. They also compound it by stealing and selling precious metals. This week one cartel member was caught selling iron ore to a firm exporting to China.

The COO of the Canadian First Majestic Silver Corp, Ramon Davila said that it was a very difficult situation for the mining companies. More and more specific cases of threats from organised crime trying to penetrate areas of mining exploration and operation are now coming to light.

Mr Davila from the Vancouver based company also said that the lack of a rapid response by the authorities made these gangs strong. Several mining firms have made cut backs on their projects or plain abandoned them due to this menace.

Despite this the mining industry is expected to grow almost 10% as investment rise and prices recover from the global financial crisis.


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