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January 2, 2008 |
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GRUPO MEXICO: Cananea Protest To Last Into First Quarter 2008 The protest at Grupo Mexico SA, de C.V.'s Cananea copper mine would continue throughout the first quarter 2008, Business News Americas reports, citing Rodrigo Heredia, analyst with Mexican bank IXE. As reported in the Troubled Company Reporter-Latin America on Dec. 19, 2007, protesters at the Cananea mine received authorization from a Mexican court to continue their demonstrations. Grupo Mexico, at the labor ministry's order, negotiated with the STMMRM union to try to end a four-month impasse which has kept operations paralyzed at the firm's Cananea copper mine, San Martin zinc mine and Taxco silver-lead- zinc mine. Grupo Mexico however failed to reach any agreement with STMMRM. Union spokesperson Carlos Pavon Campos said the protests against Grupo Mexico would continue. The union demanded, among other things, the enhancement of safety precautions in the mines as about 65 miners were killed in an explosion at a Grupo Mexico coalmine last year. Union leaders claimed that Grupo Mexico refused to consider its recommendations for the safety of workers at Cananea. Grupo Mexico alleged that the purpose of the union's protest was to clear the name of their boss Napoleon Gomez, who escaped to Canada in 2006 when arrest warrants for corruption charges were issued against him. The union denied the allegation. Mr. Heredia told BNamericas that Grupo Mexico's troubled relationship with the union sparked repeated demonstrations against the firm. Mr. Heredia commented to BNamericas, "The conclusion here would be that until this issue [is resolved] and the miners can affiliate themselves with a new union, the conflict will continue." Mr. Heredia, assuming Cananea is at a standstill for the rest of the first quarter 2008, expects Grupo Mexico to produce next year up to 660,000 tons of copper, including output from its Peruvian operations, BNamericas states. Grupo Mexico SA de C.V. -- http://www.grupomexico.com/ -- through its ownership of Asarco and the Southern Peru Copper Company, Grupo Mexico is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 29, 2006, Fitch upgraded the local and foreign currency Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to 'BB+' from 'BB'. Fitch said the rating outlook is stable. |
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