11th Feb 2014 15:05
LONDON (Alliance News) - Fresnillo PLC Tuesday said that a district court in Mexico has denied the request by the Ejido El Bajio agrarian community to prevent the lifting of the explosives permit covering Fresnillo's Herradura and Soledad mines.
The precious metals miner, operating in Mexico, said the decision was made following a hearing on January 24 to hear the Ejido community's appeal case.
The company said it will present the court decision before the Mexican Ministry of Defense as additional support for the lifting of the suspension of explosives at the sites.
The Ejido group has the right to a final and definitive appeal before a higher court in the country.
Fresnillo reafirmed its view that there are no legal grounds for the suspension to not be lifted.
On October 24, Fresnillo reported that the community had presented legal proceedings to try to impede the lifting of the temporary suspension of the explosives permit covering Herradura and Soledad, and that the Ejido had obtained a temporary stay order in its favour pending further review by the court in early November.
In November, the court found the stay order request by the Ejido community should not apply to Herradura and Soledad, subject to the appeal, as they do not lie within the boundaries of the community.
The company's Dipolos mine, however, does lie within the boundaries of the Ejido El Bajío agrarian land and explosives permits at the site remain suspended.
In December, the company lowered its full-year 2013 gold production estimates, citing the issues for permission to use explosives in Mexico.
Fresnillo shares were up 4.2% to 898.5 pence, making it the top FTSE 100 gainer Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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