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More cost creep in the pipeline for Mexico’s mining companies

Better known to the world as “Napito”, congressional senator for Mexico’s ruling Morena party and (in)famous in the mining world, Napoleón Gómez Urrutia, this week presented a law bill to Mexico’s parliament that will place more stringent rules on third-party sub-contracting of labour. If passed, any law that requires the third party companies to fully comply with existing labour laws (e.g. provide medical coverage/pension/profit sharing to workers) as if they were the end company and would put an end to the use of third party contractor groups if they do not comply with the law, as well as clamping down informal and illegal third party companies. 
As third party contracts are a popular strategy in the mining industry (simple reason; much cheaper), any progress in this law should be watched by the sector.

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