London-listed Fresnillo has successfully adapted to the “considerable challenges” resulting from labour reforms in Mexico, said chairperson Alejandro Baillères on Tuesday.
The reforms, which limit the use of subcontractors, required the precious metals miner to internalise, recruit and retain a substantial proportion of its work force.
In a copy of a speech set to be delivered at the firm’s annual general meeting, Baillères stated that Fresnillo also invested substantially into new equipment to address capacity constraints.
“Although this has been disruptive, the actions we took have proven effective and our mines are now fully staffed. We believe these changes will lead to a more cohesive and resilient workforce in the longer term.”
Commenting on the recent proposals for a mining law reform in Mexico, Baillères said that preliminary analysis indicated that there would be no material impact for Fresnillo.
“Like all companies, we remain cautious about the outlook for the global economy, as well as mindful of the continued pressure of inflation, supply chain constraints, the tight labour market and other factors which will have an impact on our business.”
Nevertheless, he was confident that Fresnillo would maintain the steady progress of the last 12 months.
The Mexico mining law proposal shortens concessions in the mining sector to 30 years from 50, tightens water extraction permits, and requires some mining profits to be returned to local communities, among other modifications.