Miner First Majestic starts legal proceedings over Mexico tax dispute

FILE PHOTO: Silver bars and coins are stacked on a table in the safe deposit boxes room of the ProAurum gold house in Munich March 3, 2014. REUTERS/Michael Dalder

(Reuters) - Canadian miner First Majestic Silver Corp said on Tuesday it has started legal proceedings against the government of Mexico following a prolonged tax dispute with the country.

The company has been in the crosshairs of Mexico’s local tax authority, related to an arrangement dating back to 2010 that involved silver pricing.

Mexico is the world’s largest silver producer, responsible for nearly a quarter of global output, with production of about 6,300 tonnes in 2019, according to the U.S. Geological Survey.

Last month First Majestic said it would pursue all legal avenues, including those under international law, unless it can reach an amicable settlement with authorities.

The miner did not immediately respond to a Reuters request for comment about its next steps and target timeline for the arbitration proceedings.

Mexico’s economy ministry did not immediately respond to a request for comment.

Reporting by Arunima Kumar in Bengaluru and David Alire Garcia in San Salvador; Editing by Shounak Dasgupta