Farmers Stung Twice by Grupo Mexico Spill Fouling Waters

October 1, 2014

09/30/14 Bloomberg

farmersMarco Antonio Corrales has given up on the peanut and alfalfa crops he was growing this season along the banks of the Sonora River in northern Mexico. That’s because the waterway, polluted by a copper sulfate solution that spilled from Grupo Mexico SAB (GMEXICOB)’s Buenavista del Cobre mine last month, then overflowed after Hurricane Odile soaked the region, flooding Corrales’s fields. “We have to assume we’ve lost everything,” said the 46-year-old grower, sporting a cowboy hat and a chunky silver belt buckle. “The Sonora River was our livelihood.” The combination of Mexico’s largest mining spill and heavy rains swelling the chemical-tainted river are causing losses to almost all cattle ranchers and crop damage in an area the government says accounts for nearly 20 percent of the state economy. Sonora’s worst rainy season in 40 years also sparked officials, who shuttered one-fifth of the mine’s production, to reduce levels at all containment pools, deputy environmental prosecutor Arturo Rodriguez said.

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Japan’s Mitsui sells 25 percent stake in Arizona copper mine to Grupo Mexico

September 25, 2014

09/25/14 Reuters

mineJapanese trading house Mitsui & Co Ltd (8031.T) said it had sold its 25 percent stake in Silver Bell Mining to a unit of Grupo Mexico (GMEXICOB.MX) that already owns the remaining 75 percent in the operator of Silver Bell copper mine in Arizona. The sale comes as part of Mitsui’s three-year business plan, mapped out in May, to sell off 700-900 billion yen ($6.4-8.2 billion) of assets by March 2017 to fund investment plans and seek returns to shareholders. “After examining our global assets, we’ve decided to sell some assets which are not among our top priority list,” a Mitsui spokesman said on Thursday.

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Grupo Mexico Spill Sparks Public Scrutiny of $150 Million Mop-Up

September 17, 2014

09/17/14 Bloomberg

MiningMexico is sending federal officials to Sonora state to oversee Grupo Mexico SAB (GMEXICOB)’s $150 million cleanup of a copper mine spill that the government says contaminated the water supplies of at least 24,000 people. The special commission of environmental and agriculture ministry officials will monitor the company’s pledge to clean Mexico’s worst mining spill, which occurred Aug. 6 in the northern state that borders Arizona.

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Mexico: Trust to Pay for Spill Damage

September 15, 2014

9/11/14 The New York Times

MiningMexican federal officials say Grupo Mexico, a mining conglomerate, will set up a $151 million trust to pay for damage caused when one of its mines spilled acid-laced copper sulfate and heavy metals into two rivers in northern Mexico on Aug. 7. The company blamed heavy rains for the overflow of containment ponds on Aug. 7. Officials say lax supervision at the mine appeared to have caused the accident.

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Grupo Mexico to Face Major Cleanup Fees After Spill

August 27, 2014

08/26/14 The Wall Street Journal

MiningMexican authorities are seeking major cleanup fees from mining giant Grupo Mexico S.A.B. de C.V., after an acid spill at a mine in the northern state of Sonora contaminated two rivers and left thousands more without clean water.

“This is the worst natural disaster provoked by the mining industry in the modern history of Mexico,” said Mexican Environment Minister Juan José Guerra Abud on Tuesday.

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Grupo Mexico Goes From First to Worst on Chemical Spill

August 26, 2014

08/26/14 Bloomberg

mineSpilling chemicals into two rivers near the U.S. border is making Grupo Mexico SAB (GMEXICOB) the country’s worst performing major stock.

The shares have lost 5.3 percent, the most among 35 companies on the benchmark IPC index, since an Aug. 6 copper sulfate solution spill at its Buenavista del Cobre mining operation that the company says contains the world’s largest copper reserves. In the preceding month, it led gains among the index’s materials stock to a 16-month high 49.24 pesos.

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Grupo Mexico Shares Fall as Congress Responds to Spill

August 22, 2014

08/21/14 Bloomberg

mineGrupo Mexico SAB, the world’s fourth-largest copper producer, fell the most since March after congress called for a cancellation of the company’s Cananea mine concession following a chemical spill.

Grupo Mexico, billionaire German Larrea’s holding company, fell 2.9 percent to 45.75 pesos at 1:21 p.m. in Mexico City. Earlier it lost as much as 3.9 percent, the most intraday since March 13. The shares have lost 5.3 percent since a copper sulfate solution spill was detected at the company’s Cananea mine Aug. 6 in the northern Sonora state.

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