After the news this morning of yet another multi-million dollar gold robbery in Mexico, in which the La Herradura mine (NEM and FRES.L) was done for over U$10m of gold, it’s more than interesting to find out that rather than bolster measures against the Mexico thieves, often organized criminal gangs connected to narcotrafficking, the mining companies have been cutting down on security in 2015.
According to this article in Mexico’s newspaper of record Reforma from just four days ago, mining companies have cut the amount they spend on private security in Mexico by 17% this year. Citing figures given to it by Mexico’s Chamber of Mining Camimex, Reforma states that mining companies have invested U$47.2m in security in 2015, which compares to U$57.5m for the same period in 2014.
The report goes on to quote one Manuel Reyes, who is president of the important AIMMGM body (the national association of mining engineers, metallurgists and geologists) who said that the spending cuts weren’t because there were less criminal incidents but simply because the metals prices had got mining companies cutting what they think are non-essential expenses to the core.
I wonder how “non-essential” Newmont thinks those cut salaries are today?