However, operational since 2011, the underground mine is facing the threat of closure following the expiry of its main environmental authorization on Oct. 23, despite Fortuna’s efforts since May to petition SEMARNAT to extend the EIA for another 10 years.
The environment ministry recently issued a statement saying it would work to organize the consultation of nearby indigenous communities as part of the mine’s requested environmental authorization. Local activists have been denouncing the silver mine for alleged presence of unauthorized constructions.
For the moment, the company is operating the San Jose mine under the protection of Mexican courts, and its lenders have also extended the date by which it must obtain a permanent injunction or equivalent protection to Feb. 18, 2022.
In a press release on Friday, Fortuna maintained that it is “fundamentally in compliance with all material aspects of the EIA and is entitled to an extension,” and is continuing to work with authorities to resolve this matter.
Shares of Fortuna Silver Mines were down 1.0% by noon ET. The Canadian precious metals producer has a market capitalization of C$1.44 billion.
