Almaden denied permit application for its Ixtaca project

Last week Almaden Minerals (TSX:AMM) announced that its initial environmental permit application for its Ixtaca project was denied.

Almaden originally submitted its environmental permit application (MIA) in early 2019. The permitting authorities are the Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT).

The company said the reasons for the denial were insufficient information regarding the impacts of open-pit mining on the environment, local and regional areas.

“SEMARNAT appears to have discounted the company’s prevention, mitigation and compensation measures which were part of the MIA application,” writes Almaden.

The company’s CEO said Almaden will weigh next steps.

“We are disappointed with SEMARNAT’s decision. We will review the reasons provided and the factors that may have led to this decision and determine a path to move this project forward,” said CEO Morgan Poliquin in a news release.

Commenting on the permit denial, El Sol de Hermosillo’s Gustavo Alvarez writes that 2021 could be more difficult for mining companies with several local elections due to be held.

“[Mining] companies, mainly those who are outside the country, still do not understand that social capital will be the only way to open negotiation channels to operate in times of a populist and electoral government,” writes Alvarez [translated from Spanish by Google Translate].

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