340 Million Dollar Mining Investment Halted in Guerrero Amidst Controversy

Web Editor

November 3, 2025

a large industrial area with a lot of machinery and mountains in the background, with a river runnin

Background and Key Players

Guerrero, a Mexican state known for its significant mining activity, is currently facing a 340 million dollar investment halt by Canadian company Equinox Gold at its Los Filos mine. This situation stems from the expiration of temporary land occupation agreements with the communities of Mezcala, Carrizalillo, and Xochipala on April 1, 2024. Subsequently, the Federal Prosecutor for Environmental Protection (Profepa) imposed a temporary shutdown due to environmental risks in the leaching pads, tepetates, and underground mine.

Impact on Employment and Local Economy

The halt in operations has resulted in the loss of 800 direct jobs across three localities, affecting the economic livelihood of 14,000 residents compared to the 1,500 represented by the single locality. The absence of complementary tourism or industrial activities in these mining zones has exacerbated the economic consequences.

Governmental Stance and Community Demands

The Guerrero state government, under instruction from the governor, has been supporting dialogue with the affected communities. Meanwhile, federal authorities are conducting their processes. The communities are currently evaluating proposals while considering social aspects, as they hold the final decision-making power regarding their lands.

Procuraduría Agraria’s Support

The Agrarian Procurator (PA) has backed the temporary shutdown of Los Filos mine activities. The ejidatarios of Carrizalillo demand the return of rehabilitated lands according to legal frameworks, environmental damage reparation, and a new just and equitable social occupation agreement that respects the dignity of farmers.

Mining Focus in Guerrero

Guerrero, being the fifth state with the most mining activity, aims to shift the negative perception surrounding mining by integrating it as an economic and social development driver. To achieve this, the state has established or reinstated the State Mining Council, involving four mining units, academia, and organized social sectors.

Key Questions and Answers

  • What is the cause of the 340 million dollar investment halt in Guerrero? The halt is due to the expiration of temporary land occupation agreements with local communities and a subsequent temporary shutdown by the Federal Prosecutor for Environmental Protection (Profepa) because of environmental risks.
  • How many jobs have been lost due to this situation? Approximately 800 direct jobs have been lost across three localities in Guerrero.
  • What are the demands of the affected communities? The ejidatarios of Carrizalillo demand rehabilitated lands, environmental damage reparation, and a new just and equitable social occupation agreement that respects farmers’ dignity.
  • What is Guerrero’s strategy to improve mining perception? Guerrero aims to shift the negative perception of mining by integrating it as an economic and social development driver through dialogue, collaboration, and the establishment of the State Mining Council.