(Reuters) – Canadian miner First Majestic Silver Corp. said Tuesday that it has started a lawsuit against the Mexican government after a long-running tax dispute with the country.
The company has been in the crosshairs of Mexico ‘s local tax authority, in connection with a settlement dating back to 2010 that included cash prices.
Mexico is the world’s largest producer of silver, responsible for nearly a quarter of global production, with production of about 6,300 tons in 2019, according to the U.S. Geological Survey.
Last month First Majestic said it would follow all legal avenues, including those under international law, if it could not reach an amicable settlement with authorities.
The miner did not immediately respond to Reuters’ request for comment on the next steps and the target timeline for the settlement proceedings.
Mexico’s ministry of economy did not immediately respond to a request for comment.
Reporting with Arunima Kumar in Bengaluru and David Alire Garcia in San Salvador; Edited by Shounak Dasgupta