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11/1/10

Mexico drug gangs and Pan American Silver (PAA.to) (PAAS)

Here's a small clip from IKN78, out yesterday. Funny how PAAS hasn't bothered to tell its shareholders about the robbery, innit?

Mexico Mining and drug violence update
Further to our feature in IKN76 of the Reuters story about the rise in drug violence crime that is beginning to affect Mexico’s mining industry, your author has noticed an upsurge in reporting in the Spanish language on this issue that include declarations from Mexico’s Camimex that (we quote), “some murders have already been registered in mining camps in the country.”

We can also confirm via a report in Spanish language business magazine Milenio (14) that the mine affected by a recent robbery was Pan American Silver’s (PAA.to) (PAAS) La Colorada mine, when 150 bars of silver/gold doré were stolen with a metal value of $3m. Your author finds it interesting that the victim of said robbery was one of Mexico’s larger, internationally owned mines with an annual production that ranges between 3.5m and 4m ounces of silver per year, not some small artisanal company with probably much less in the way of security infrastructure. By way of a geographical location reminder, La Colorada is situated in Zacatecas state, roughly midway between the cities of Zacatecas and Durango.