Gold output hike boosts Mexico’s Durango state appeal
Mexico’s north-western state of Durango has reached record gold output this year, with the region producing 1,254 kg of the precious metal in July, official data shows.
According to the National Institute of Statistics and Geography (INEGI), production levels have remained stable since April this year, when the state’s output was 1,280 kg, OutletMinero reports (in Spanish).
The news represents a relief for local authorities, which have seen several projects halted in recent months because of both, lower metal prices and the introduction of mining taxes. Since October last year, companies pay a 7.5% charge on income minus certain deductions and 0.5% gross revenue royalty on gold, silver and platinum mines.
One of them is U.S.-based Coeur Mining (NYSE:CDE). The miner shelved its $300 million plus La Preciosa gold and silver project in July, but it is now saying that it’s just waiting for the market to improve.
"Development of La Preciosa is a question of when, not if," chief development officer Joe Phillips said during the BNamericas 2nd Mexico Mining Summit, last week.
The miner, the largest American primary silver producer, acquired the project last year, when it purchased Canada's Orko Silver Corp. La Preciosa is expected to generate 10.3Moz/y silver and 12,000oz/y gold over 10 years at silver equivalent cash costs of US$14.30/oz, according to a July feasibility study.