Pan American silver mine returns to limbo after Reuters repeals mining law

BUENOS AIRES (Reuters) – Canada’s Pan American Silver (NASDAQ 🙂 silver mine in Argentina returned to limbo on Monday after repealing the mining law passed by the provincial government last week.

The province of Chubut, in the southern region of Patagonia, Argentina, repealed the law after violent protests by local communities against the bill for days. The law would allow open pit mining in two areas, including the location of the large silver Christmas project by Canadian miner Pan American Silver.

After the law was passed last week, government buildings in the provincial capital of Rawson were set on fire, roadblocks were set up and clashes broke out in the streets.

Navidad has been at a standstill since 2013, when it violated provincial regulations banning the use of cyanide in open pit mining. Locals and environmental organizations are opposed to the exploitation of silver and lead due to the possibility of contamination.

“We have decided to repeal the law and promote a plebiscite at the provincial level so that all people’s voices can be heard,” Chubut Governor Mariano Arcioni wrote on Twitter (NYSE 🙂 on Monday.

Pan American Silver did not immediately comment.

Argentina, one of the top 10 silver producers in the world according to the U.S. Geological Survey, wants to expand its mining production to boost its troubled economy.