Mining company Cadence and its subsidiary REM Mexico Limited have submitted a request to the Mexican government for consultation and negotiations under the UK-Mexico Bilateral Investment Agreement.
Application refers torevocation of mining concessions for the Sonora Litio project.
The decision is part of the federal government’s policy and was announced by Mexico’s General Directorate of Mines. President López Obrador explained this at his conference:
The Company confirms that the affected concessions include those granted by Mexilit SA de CV and Minera Megalit SA de CV, which include participation 30% of firms with capital from the United Kingdom.
In its request, the firm alleges that Mexico has breached obligations under the UK-Mexico trade treaty, including “Mexico’s obligations under do not illegally expropriate the investments of British companies” and “treat such investments fairly and equitably.”
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In this first phase, the company requested consultations and negotiations with the Mexican government to try to resolve the dispute amicably.
However, the company remembers that in case of non-settlement the case may be referred to international arbitration:
The BIT (agreement) provides for the resolution of disputes by international arbitration if they cannot be resolved through consultations and negotiations.
For this process, the firm hired an international law firm specializing in mining-related investment treaty arbitration cases.
In a statement, Kiran Morzaria, CEO of Cadence, commented:
“The Clifford Chance team has many years of experience in mining investment treaty arbitrations and has successfully resolved similar cases in the past. We hope that, under your leadership, a constructive solution can be reached through consultations and negotiations with Mexico under the BIT.”
Investments
Cadence has an interest in the Sonora Lithium Project through its 30% stake in Mexilit and Megalit.
The project consists of nine concessions awarded.
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
