Fresnillo expects minimal impact from Mexico mining law reform

(Sharecast News) - Fresnillo updated the market on Mexico's reformed federal mining law on Tuesday, claiming that its potential impact on current operations and exploration projects would be minimal. The FTSE 100 company said it had analysed the reform, concluding that none of its current mining operations were expected to be affected by the new law, as it had all necessary concessions currently in place to allow it to operate on an ongoing basis.

It said the average remaining term of such concessions was 28 years, adding that they would be subject to renewal at the end of their respective terms.

Looking at Fresnillo's main advance exploration projects, Orisyvo and Rodeo, the firm said it currently held all concession permits, with an average term of 33 years, subject to renewal as well.

Fresnillo said it was currently analysing any possible implications regarding new requirements for the deposit of tailings or industrial residues, but it claimed no significant adverse impact was currently expected.

The new legislation would place greater emphasis on environmental and social obligations.

However, Fresnillo noted that it would continue to comply with environmental and social best practices and obligations in the places where it operates.

Certain aspects of the new law could require additional clarifications from the regulator, which would be accomplished through guidance or complementary regulation that was yet to be issued.

Fresnillo said it would continue to engage with all relevant stakeholders to ensure it was meeting the requirements of the law.

"Fresnillo will continue to review any potential aspects of the new law which may merit legal analysis in order to determine the best course of action, including potential challenges based on constitutional aspects, if any," the company said in its statement.

At 0806 BST, shares in Fresnillo were up 2.01% at 733.6p.

Reporting by Josh White for Sharecast.com.