Eureka Case 30 min Undergrad

Cerro Salinas

You are Mateo Valdivia-Iturralde, 54, newly appointed CEO of Cerro Salinas Mining SAPI de CV, a Mexico–Canadian copper-silver JV (Pemco México 51% / Maple-Ridge Canada 49%) operating a US$ 1.4B mine 14 km from the comunidad agraria of San Juan de los Olmos in Zacatecas. Six weeks into the role, an Hijos de la Sierra de Olmos blockade has halted truck access for 19 days. The board wants a stakeholder strategy by next Wednesday.

The situation

Cerro Salinas began commercial production in 2022. Concession permits were granted in 2018 under the Peña Nieto administration and have been informally questioned by the López-Obrador / Sheinbaum-era Secretaría de Medio Ambiente (SEMARNAT). The mine accounts for ~6% of México's silver production. Project economics need the operating-license review (due in Q3 2027) renewed to clear the 15-year hurdle.

San Juan de los Olmos is a 1,400-person Náhua-affinity comunidad agraria with collective ejido title under Article 27. The 2018 community consultation followed Convention 169 ILO procedurally but is now publicly contested as deficient. The blockade is led by Doña Lucía Pérez-Maldonado (62, comisariada ejidal) and supported by the Frente Zacatecano por la Defensa del Territorio (NGO) and quietly by the state government. The federal Subsecretaría de Minería has stayed neutral. The Chinese JV partner (38% of project debt) wants the situation resolved before its own annual disclosure window.

Your job in this case: read the 11-stakeholder salience map, model the cost of restoring permission to operate, and commit to a stakeholder strategy. The board (Pemco México + Maple-Ridge) meets Wednesday. Doña Lucía has agreed to one preliminary meeting with the new CEO before then. The state Gobernador's office has hinted it would welcome a co-design announcement before the federal Q3 review window opens.

The decision

What strategy do you take to the board Wednesday?

  • A · Compensation-only (lift the blockade with money)
  • B · Co-design with the comunidad
  • C · Withdraw & litigate (escalate to the federal government)

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