New Gold - Minera San Xavier – Cerro San Pedro Mine
Injunction against PROFEPA order Suspending Mining Operations
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On December 14, 2009, MSX was granted an injunction by the First District Court in San Luis Potosi against a November order suspending mining at Cerro San Pedro issued by PROFEPA, the Mexican environmental enforcement agency. As a result of the injunction, operations have recommenced and are expected to continue through the duration of the continuing legal proceedings.
Cancellation of 2006 Environmental Impact Statement (EIS)
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The suspension of mining activity resulted from the ruling by the Federal Court of Fiscal and Administrative Justice in September 2009 that ordered SEMARNAT, the Mexican environmental protection agency, to nullify in November the authorization of MSX’s 2006 (EIS) for the Cerro San Pedro mine. MSX appealed the ruling and a hearing in the Third Federal District Court in Mexico City, previously scheduled for early March 2010, has been re-scheduled to early April 2010.
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The Federal Court’s decision does not affect MSX’s land usage permit or its other operating permits, all of which remain in effect, except as noted below in relation to the explosives permit.
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In November 2009, MSX filed a request for authorization for a new EIS with SEMARNAT. The request was accepted by SEMARNAT and evaluation has commenced.
Explosives Permit
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In February 2010 a hearing was scheduled to commence in the Fourth District Court in San Luis Potosi, related to a challenge by opposition to the mine to the annual renewal of the explosives permit at Cerro San Pedro. That hearing has been postponed until mid-March 2010. The company's legal advisers believe that the outcome of the hearing will be positive and normal operation of the mine will resume soon thereafter.
About Cerro San Pedro
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New Gold’s Cerro San Pedro Mine has an enviable record of compliance with Mexican and international environmental standards and enjoys overwhelming local support as a valuable corporate citizen.
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Regional expenditure directly benefitting the surrounding area in 2009 was approximately US$43 million.
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MSX expects to spend US$6.5 million on employee wages and benefits this year.
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MSX contributes significantly to the development of the surrounding communities while preserving the historic character of the town immediately adjacent to the mine through a number of initiatives:
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cleaned up mining waste abandoned by previous miners
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developed a nursery that to date has produced more than 75,000 plants for reclamation and agricultural purposes
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reforested 52 hectares with 56,000 plants in the Monte Caldera area
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built new homes and schools for residents
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rehabilitated historic churches that had suffered from many decades of neglect
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constructed a new church
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conducted trade skills training programs
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equipped schools with computers and other educational aids
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supported cultural festivals
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provided jobs to a significant percentage of the neighbouring population
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Each week, MSX provides free medical services, including doctor visits, ambulance service and dental care, in the neighbouring village of Cerro de San Pedro and the other nine communities in the immediate area.
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MSX has invested significant sums in paving roads, installing sewage lines and building drainage systems to better the lives of local citizens.
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New Gold has a history of operating in a socially and sustainable manner meeting international standards in the three countries where it operates mines.
- Resources relevant to this fact sheet including links to Mexican and Canadian government/ministry websites: http://delicious.com/CerroDeSanPedro.
Click here to view the Image Gallery - Posted November 13th 2009
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Certain information contained in this site, including any information relating to New Gold’s future financial or operating performance may be deemed “forward looking”. All statements in this site, other than statements of historical fact, that address events or developments that New Gold expects to occur, are “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “does not expect”, “plans”, “anticipates”, “does not anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, ”scheduled”, “forecast”, “budget” and similar expressions, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward looking statements are subject to important risk factors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause New Gold’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: New Gold’s anticipated synergies from the business combination with Western Goldfields Inc. may not be realized; there may be difficulties in integrating the operations and personnel of New Gold; significant capital requirements; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Brazil, Mexico and Chile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States, Australia, Brazil, Mexico and Chile or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that New Gold operates, including, but not limited to, Mexico, where New Gold is involved with ongoing challenges relating to its environmental impact statement for Cerro San Pedro Mine; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as “Risks Factors” included in New Gold’s Annual Information Form filed on March 31, 2009 and Management Information Circular filed on April 15, 2009, both available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this site are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.