Mexico’s federal administrative court has upheld an injunction sought by Fortuna Silver to keep the San Jose mine operating under a 12-year environmental impact permit, the Vancouver-based company said in a statement Wednesday.

Minera Cuzcatlán, the Mexican subsidiary of Fortuna, recently initiated legal proceedings to revoke the cancellation of the authorization in response to a resolution issued by the Ministry of the Environment, which re-evaluates the 12-year extension of the authorization granted in San José in December 2021.

“The court admitted the legal proceedings and, as a first step, accepted an appeal in favor of Minera Cuzcatlán. The court is expected to rule on whether to grant a permanent precautionary measure in the coming weeks, which would remain in effect until it rules on revoking the environmental impact permit,” Fortuna said.

Last week, Minera Cuzcatlán reported that San José, Oaxaca was operating normally and within the law.

“Minera Cuzcatlán is in full compliance with all relevant environmental laws and continues to operate under the terms of the Environmental Impact Authorization. The company continues to work with communities in the mine area to improve and expand social benefits in the region,” Fortuna added.

According to the Canadian, the mine is the biggest job generator in the Central Valleys region, with 1,200 direct jobs.

The underground mine began commercial operations in September 2011. In 2013, the company acquired a 55% stake in the Taviche Oeste concessions from a local subsidiary of the Canadian company Pan American Silver.

In 2022, San José produced 5.76 million ounces of silver and 34,124 ounces of gold.