Court to rule on constitutionality of Mexican mining law

A Mexican court is due to rule on the constitutionality of the country's mining law in a land dispute.

The ruling, by a federal court in Puebla state, relates to a legal challenge by residents of Tecoltemi village against the award of two concessions to Minera Gorrión, a subsidiary of Canada-based Almaden Minerals, Reuters reported.

Lawyer Itzel Silva, of Mexican NGO Fundar analysis and research center, representing the Tecoltemi villagers, said this month's ruling was the first time a court would rule on the constitutionality of Mexico's mining law.

The law gives priority to mining activities over other types of land use.

Almaden plans to develop its Ixtaca gold-silver project in Puebla state following a feasibility study last year, which indicated production of 203,000oz/y gold equivalent over the first six years and a post-tax IRR of 42%.