Justin Trudeau: Feds spoke to Canadian minister after whistleblowing mining company

(Photo: REUTERS/David Alire)

mining company, Majestic First Silver, currently litigate in international tribunals, and await a decision from the Supreme Court of Justice of the Nation (SCJN) in order to avoid paying almost 11 billion pesos to Mexico for the extraction of the minerals that it carries out. Faced with the situation, the federal government filed a complaint with the courts.

Regarding the case, the President Andrés Manuel Lopez Obrador (AMLO), revealed the progress of the investigations, including the dialogue he established with the Prime Minister of Canada, Justin Trudeau.

“With the Canadian mining companies we have two problems, there is one left, which is a prosecutor, and I have discussed this with the Prime Minister Justin Trudeauthat of Cosalá is already resolved, but we have that of Tayoltita, Durango, because it’s a tax issue, they don’t want to pay taxes,” he said at the February 7 conference.

In addition to this, the president pointed out that the judiciary “acts with rectitude in this matter” and accused that before the cases were lost and “the taxes must be canceled or they must be paid for the damages”.

The mining company that the president singled out during his conference owes about 11 billion pesos ($534 million).
The mining company that the president singled out during his conference owes about 11 billion pesos ($534 million).

Moreover, he pointed out that no corporate taxes will be forgiven during his tenure “It is very clear that there is no more impunity, that taxes are no longer reimbursed.” He reiterated that regarding the complaint, the matter will be followed closely to address his complaint.

At the end of January this year, the head of the Tax Administration Service (SAT), Raquel Buenrostro Sánchez reported at a press conference that the Vancouver-based company, First Majestic Silver Corp went to international courts to avoid paying the corresponding taxes to the public treasury.

The mining company, First Majestic Silver, is currently on trial in international courts, awaiting a decision from the Supreme Court of Justice of the Nation (SCJN) (Photo: REUTERS/Jean Luis Arce)
The mining company, First Majestic Silver, is currently on trial in international courts, awaiting a decision from the Supreme Court of Justice of the Nation (SCJN) (Photo: REUTERS/Jean Luis Arce)

The official, in charge of tax collection, said that the canadian miner argued that Mexico applied discriminatory tax treatment to it. It should be added that audits, dating from 2010, show that the company owes about 11 billion pesos ($534 million).

The company currently has three operating mines in Mexico and eight others in various stages of development.

In March 2021, the President, Andres Manuel Lopez Obradorannounced that it was ready to file a lawsuit, including the revocation of a concession, against two Canadian mining companies, accusing them of having violated the law in a tax dispute and a labor dispute, respectively.

On this occasion, the President referred both to the conflict which persists with Majestic Prime like the one that, according to his statement this morning, has already been repaired, in the Cosalá mine, Sinaloa.

This mine ceased operations for just over a year and a half, due to a labor dispute with the company Gold and silver of the Americas. In January 2020, the San Rafael mine is taken over and blocked by a group of 14 workers from the Napoleon Gomez Urrutia union.

It should be noted that workers, families and residents of Cosalá, demonstrated publicly to ask for help from the federal government and end the conflict. In this regard, the president took a stand by stating that the company did not accept the union.

For this reason, the President publicly asked the Secretary of External Relations (SRE), Marcelo Ebrard, talk to the Canadian government about the case.

Finally in July 2021, the mining company Gold and silver of the Americas signed an agreement with the Mexican government and the mining union to be able to reopen its San Rafael project located in Cosalá, Sinaloa.

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