Prospect of Harsher Rules Causes Mexican Mining Companies to Fall Even Farther
- Morena party senator proposed tougher mining regulation
- Lima-based Southern Copper sees sharpest decline since 2011
A miner extracts ore samples from a silver mine in, San Luis Potosi State, Mexico.
Photographer: Mauricio Palos/BloombergThis article is for subscribers only.
Mining companies operating in Mexico extended a sell-off, with Southern Copper Corp. falling the most since 2011, even as a Mexican lawmaker attempted to calm market worries over the prospect of tougher regulation under incoming President Andres Manuel Lopez Obrador.
Large Mexico-based mining companies have slipped almost 8 percent on average over the past two days, according to analysts at Raymond James. Lima-based Southern Copper fell 11 percent in New York, and Toronto-based Torex Gold Resources Inc. was down as much as 14 percent, the biggest intraday decline since July.