Attacks Across 20 States Threaten Pan American Silver’s Juanicipio Mine
El Mencho's killing on Feb 22 triggered attacks across 20 states, threatening Pan American Silver’s Juanicipio mine in Zacatecas. Disruptions at this site, which contributed to over 75 million ounces of silver in 2024, could squeeze global supply and boost price swings.
1. CJNG Leadership Vacuum Sparks Violence
The Feb 22 killing of CJNG leader Nemesio ‘El Mencho’ Oseguera Cervantes in a coordinated operation has triggered a wave of retaliatory attacks, including arson, roadblocks and assaults on infrastructure across approximately 20 Mexican states. Rival factions are vying for control of the organization’s lucrative territories, escalating fragmentation and violence.
2. Risk to Juanicipio Operations
Pan American Silver’s Juanicipio mine lies within Zacatecas, one of the most contested silver belts historically influenced by CJNG. Recent road blockades and threats of extortion have disrupted transport corridors and workforce access, forcing companies to consider temporary shutdowns or heightened security protocols.
3. Potential Market Impact
Juanicipio contributed significantly to the 75 million ounces of silver produced by Mexico’s top three mines in 2024. Any prolonged suspension at this and nearby operations could tighten global silver availability, heighten price volatility and pressure margins for junior and senior producers alike.