Mexico’s Cartel Violence Puts First Majestic’s San Dimas Mine at Risk
On February 22 Mexican forces killed CJNG leader Nemesio “El Mencho”, triggering attacks and roadblocks across key states including Durango, home to First Majestic Silver’s San Dimas mine. These disruptions threaten ore transport and could raise costs at a top silver belt that produced over 75 million ounces in 2024.
1. Cartel Leadership Change Spurs Violence
On February 22 Mexican military forces eliminated Nemesio “El Mencho”, sparking attacks, roadblocks and arson in multiple states. The power vacuum within the Jalisco New Generation Cartel has fueled clashes among rival factions as they vie for control of strategic territories.
2. First Majestic’s San Dimas at Risk
First Majestic Silver’s San Dimas mine in Durango lies within historically contested CJNG zones, leaving it exposed to transport disruptions, labor intimidation and extortion. Prolonged unrest could force partial shutdowns, inflate operational expenses and delay ore shipments from this key underground silver-gold complex.
3. Supply Chain and Market Consequences
Durango and neighboring states accounted for over 75 million ounces of silver output in 2024—nearly 10% of global mine supply. Any sustained blockage or shutdown could tighten global silver inventories, elevate prices and pressure First Majestic’s production forecasts.