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Mexico govt closes gold mine to reduce pollution
(Xinhua)
Updated: 2009-11-20 13:39

MEXICO CITY: The Mexican government has formally closed a gold and silver mine belonging to Canadian firm New Gold, ordering the firm to reduce pollution after legal authorities revoked New Gold's license.

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The San Xavier mine, located in the central Mexico state San Luis Potosi, has been ordered by Mexico's Environment Ministry to halt work earlier, but New Gold had continued excavating at historic site Cerro San Pedro until government officials arrived.

The mine was sealed by workers dispatched by the Federal Environmental Protection Prosecutor, backed by federal police and a regional political group, the Broad Opposition Front.

According to reports reaching here, New Gold executive chairman Randall Oliphant said that the firm hoped to re-open the mine soon, and that its license had been revoked due to technical reasons rather than due to any real damage it inflicted.

New Gold operates in the US state of California and the Australian state of New South Wales as well as Mexico.