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Subject
Gold mining prospects.
Significance
While Mexico stands out among emerging economies for its strong manufacturing sector and relatively low reliance on commodities, mining attracts heavy foreign investment, notably from Canadian companies. The country is best known for its silver mining and is the largest silver producer in the world. However, gold production has increased markedly in recent years.
Impacts
As crime rates rebound, drug cartels will target mining companies with growing regularity.
No major regulatory or taxation changes will affect the industry until at least 2019, after a new federal government has taken office.
Investors' trust will be dented if the tax authorities are successful in retroactively reneging on past agreements.
Keywords:
Mexico,
LA/C,
industry,
fiscal,
foreign investment,
gold,
hard commodities,
investment,
mining,
prices,
security,
economy,
politics,
government
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2016
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