Compañía Minera Cuzcatlán clarifies environmental compliance after blockade

Compañía Minera Cuzcatlán issued a statement in which it affirms that it complies with the environmental regulations required to operate its gold and silver mine in Oaxaca, after suffering blockages on access roads to that mining unit.

Compañía Minera Cuzcatlán began production there in September 2011 and at the end of 2018 had produced 35.9 million ounces of silver and 269,000 ounces of gold. The mining method applied in the exploitation of the veins is cutting and filling with a mechanized extraction methodology.

The mine’s production capacity has been increased twice; In September 2013 it was increased to 1,800 tons per day and, more recently, in June 2016, the production capacity increased to 3,000 tons per day, through an expansion of the plant, which allows the production of approximately 80 tons of silver concentrate with gold contents daily.

Compañía Minera Cuzcatlán

The company argued that there is a «disinformation campaign and media attacks against Compañía Minera Cuzcatlán (» CMC «) that resulted in blockades on December 14, 2020, in different sections of Federal Highway 175, near the municipality of Magdalena Ocotlán, Oaxaca”.

CMC clarified the following, in its own words:

  • On July 7, 2020, CMC requested the Ministry of Environment and Natural Resources (“SEMARNAT”) the authorization of an Environmental Impact Statement (“MIA”) in its Regional modality (“MIA-R San José II”) As part of the regularization process derived from an inspection by the Federal Attorney for Environmental Protection (“PROFEPA”) carried out in 2017 on buildings that show variations with respect to the original MIA authorized in 2009. These variations do not generate impacts adverse environmental conditions or different from those already stated in the original MIA.
  • At all times, Compañía Minera Cuzcatlán has followed the process under strict adherence to the laws and regulations issued by the competent authority. In this sense, on October 13, 2020, SEMARNAT notified the start of the Public Consultation procedure of the MIA-R San José II, which allowed access to the interested public to propose, as they consider it, preventive measures, mitigation and observations.
  • As is customary, actors outside of San José del Progreso from different organizations have mounted a disinformation campaign around the authorization process and the content published in the MIA-R San José II, accusing CMC of providing false information to the authorities, as well as distorting the process in favor of their own interests.
  • These same organizations claim, maliciously before the communities and in the media, that the MIA-R San José II implies the expansion of the San José Mine, when in reality it represents only a regularization of buildings.
  • Compañía Minera Cuzcatlán is in full compliance with its environmental obligations, which has been corroborated by PROFEPA, through two inspections in 2020; the last one held from October 5 to 9.