Wednesday, May 27, 2015

Fresh Developments in Mexican Mining Industry's Interactions with Cartels

Throughout the spring months, we've been keeping you apprised of the Mexican mining industry's ongoing problems with drug cartels. In mid-April, we brought you the story of a sweeping crime wave involving theft, kidnapping, and murder. Then in early May came the heartening news that U.S. and Canadian-owned mines had begun taking steps to ramp up security at their facilities in Mexico, stating that the safety and security of their workers was a prime concern.

Now, fresh reports from Mexico, have proven troubling. On May 11, the Latin America Herald Tribune reported that specific mining firms within Mexico had decided to attempt cutting a deal with the cartels.
“We ask the mafia for permission, the organized crime groups, and we are able to (operate). Things get resolved because there are negotiations by the companies,” [said Manuel] Reyes, [president of AIMMGM]. (LAHT)
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Dealing with the devil - Mining firms in Mexico negotiate with Mexican cartels.

Reyes further reports that while the negotiations have shown results in the areas of kidnapping and extortion, the robberies have continued unabated.

Whether or not negotiation is the best tactic in the long run still remains to be seen, but with all other means failing to make headway against the cartels, some within the Mexican-based mining industry feel that they have no other option.

Barring direct intervention from an unforeseen source, the situation in Mexico is unlikely to resolve itself any time soon. It's our hope, however, that Mexican law enforcement will soon prove itself effective in dealing with the cartels, leaving the Mexican mines ample opportunity to flourish.

Remember that we carry a full array of OTR tires for all of your mining needs. Please feel free to contact us for the best deals.

Image credit: Drug Money and weapons seized by the Mexican Police and the DEA - Drug Enforcement Administration via Wikimedia Commons

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