"The kidnapping of 10 miners in Sinaloa in January has brought to light yet another facet of the security crisis that has plagued Mexico's mining sector for years, fueled by the surge in silver and gold prices. Criminal organizations, which exert territorial control in some of the most resource-rich areas, extort domestic and foreign companies, driving up production costs and security budgets. Companies are forced to pay protection money or to directly hire suppliers linked to their extortionists."
"For John Price, an advisor to companies entering Latin America, including mining firms, a combination of market factors and criminality played a decisive role in the kidnapping of the workers from the Canadian company Vizsla Silver. Silver prices are at a record high, and at times like these, the activity of informal and illegal miners increases significantly, says the managing director of the firm Americas Market Intelligence."
The kidnapping of ten miners in Sinaloa underscores persistent security threats in Mexico's mining regions, where criminal organizations exert territorial control over resource-rich areas. These groups extort domestic and foreign companies, forcing payments or the hiring of suppliers linked to extortionists, which raises production and security costs. In the United States, authorities treat some of these groups as terrorist organizations, creating legal risks for companies that engage with or pay such actors. Surging silver and gold prices have incentivized informal and illegal mining activity, drawing involvement from small and large organized crime groups. Both formal employees and informal miners face heightened exposure to cartel violence. Silver rose over 120% in six months while gold increased about 50%, amplifying investor demand for safe-haven assets and fueling the boom.
Read at english.elpais.com
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