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Energy
Mexico Celebrates Seventieth Oil Nationalization Anniversary
March 18, 2008
During the commemoration of the 70th anniversary of the expropriation of the oil industry, held at the Dos Bocas maritime terminal in the state of Tabasco, President Calderon called for a broad national debate on how to modernize Pemex without privatizing the company as well as how to guarantee the country's energy sovereignty. The Calderon administration said it would promote the entry of third-party, private sector players in exploration activities, the building and maintenance of five or six refineries, as well as the storage, transportation and distribution of hydrocarbon products. While Calderon has not yet made any formal proposal to do that, the very idea of loosening the government's grip on the energy sector is a sensitive subject, as many politicians and much of the public revere Pemex with nationalistic pride. Mexico nationalized its oil industry on March 18, 1938, by expropriating 16 foreign companies.
President Calderon Announces Feasibility Study For New Refinery
March 18, 2008
President Calderon announced that the Energy Ministry (SENER) and Pemex have begun a feasibility study to build a new refinery to reduce Mexico's dependence on imported petroleum products, including gasoline. The building of the refinery and related infrastructure will require investment of between USD 6 billion and USD 8 billion. President Calderon noted that Mexico is an oil-producing country importing 40% of its gasoline, and what it produces does not measure up to national and international environmental standards. The plans for the refinery will be submitted to Congress within the next three months.
Faltering Infrastructure To Cause USD 622 Million In Losses In 2008 For Pemex
Narch 21, 2008
According to a report by Pemex's international division PMI Comercio Internacional, faltering infrastructure on Mexico's Pacific coast will cause the company to suffer losses of USD 622 million in 2008. PMI said that the "Ingeniero Antonio Dovali Jaime" refinery at Salina Cruz, in the state of Oaxaca, is in poor condition and has ceased to transport 21,700 barrels per day of Mexican crude to the U.S., which will cause a reduction in earnings.
Government Reduces Pemex PEP Budget By USD 1.6 Billion
March 20, 2008
A report issued by the Finance and Public Credit Ministry (SHCP) showed that the government has reduced the budget of Pemex Exploracion y Produccion (PEP) by over USD 1.6 billion. The resources have been reassigned to other areas within Pemex, mostly to cover administrative costs. Pemex announced earlier this year that Capex for 2008 was expected to be USD 19.7 billion.
Pemex Payroll Consumes 76% Of Firm's Budget
March 17, 2008
According to experts, Pemex's payroll consumes 76% of its budget. The company employs 26,000 managers and 119,000 unionized workers. As a result of the union contract recently signed, Pemex spends 76 cents of every peso in its working budget on salaries and employee benefits.
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Mining
SEGOB: Study Supports Decision Not To Resume Search For Missing Miners
March 18, 2008
The Interior Ministry (SEGOB) said that according to a study prepared by 14 universities and research groups, conditions in the Pasta de Conchos coal mine, in the state of Coahuila, are too dangerous to justify attempts to recover the bodies of miners killed there in a 2006 explosion. Other previous reports issued by SEGOB and a U.S. expert advised the mine's operator Grupo Mexico (GMex) to halt recovery efforts. Authorities only recovered the bodies of 2 of the 65 miners who died in the explosion. Victims' relatives have protested the decision, lobbying aggressively for the miners' bodies to be recovered. A congressional commission found that the mine failed to avoid a buildup of gas and coal dust before the explosion. GMex has insisted the mine met safety standards and denies charges that safety precautions were ignored. It does not plan to reopen the mine once efforts to recover the bodies conclude.
GMex Pleased With Court's Decision On Bidding Process For Asarco LLC
March 20, 2008
Mexican miner Grupo Mexico (GMex) announced that it is pleased that the U.S. Bankruptcy Court for the Southern District of Texas – Corpus Christi Division, the court overseeing the Chapter 11 case of Asarco LLC, agrees with GMex that the court reject any step Asarco LLC might take in connection with a process to identify a potential acquirer of Asarco LLC assets for a plan of reorganization. This ruling permits GMex, through its affiliate Asarco Inc., to continue with its efforts to present a plan that either pays the creditors in full or reinstates current debts, which would be a full-payment plan with financial assurances, as needed. GMex is also pleased and benefits from other rulings by the mentioned court on the case.
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Media & Entertainment
SCT Issues Statement In Support Of Televisa And Telemundo Agreement
March 19, 2008
The Communications and Transportation Ministry (SCT) issued a statement in support of the recent content sharing agreement signed between Mexican broadcaster Televisa and U.S. Telemundo. SCT said that it had long promoted the opening up of the Mexican market to new sources of content to benefit Mexican families. President Calderon seemed pleased with the apparent opening of the market that allegedly aims at diversifying content and plurality; nevertheless a duopoly remains in place in Mexico's broadcasting sector. Telemundo had trouble with its former Mexican partner and Televisa's rival TV Azteca after the latter embargoed Telemundo's studios in Mexico in 2006, among other conflicts.
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Farming & Agriculture
Government Authorizes Planting Of Genetically Modified Crops
March 21, 2008
The government published in the Official Gazette (DOF) regulations to allow experimental planting of genetically modified (GMO) crops. The regulations are the last step needed to implement a law passed by Congress in December 2004 that authorizes controlled GMO plantings. Proponents of pest-resistant GMO crops say they can boost crop yields, while some farmers question their safety and say native Mexican corn is at risk of "contamination."
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Hospitality & Tourism
Accor To Accelerate Expansion Into Mexican Hotel Market
March 20, 2008
According to French hotel operator Accor's director general of Mexican operations, Jean Philippe Claret, the company expects to open four hotels during 2008 in Mexico City (DF), and in the cities of Merida, Chihuahua and San Luis Potosi, targeting the Mexican business traveler and strongly competing with local peer Grupo Posadas.
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Politics
PRD Presidential Elections Surrounded By Uncertainty, Results Not Yet Reached
March 24, 2008
Members and supporters of the country's main leftist party, the Democratic Revolution Party (PRD) were called to vote on March 16 to choose a new party leader and other leadership positions. In the beginning, former Mexico City (DF) Mayor Alejandro Encinas, who favors a hard line against President Calderon's government, was the virtual winner of the election and he declared himself the victor over his main rival and former Senator Jesus Ortega. Nevertheless, the voting was marred by allegations of vote-buying, intimidation and the use of improper ballots. Arturo Nuñez, a Senator heading the PRD's election panel, declared that the two rival factions were making it difficult to finish counting ballots because of their repeated objections and disputes. Nuñez called on party leaders to find a way out of the problem. The vote-counting fight followed a bitter campaign between Encinas and Ortega. Encinas is a close ally to former presidential candidate and main opponent to Calderon's government Andres Manuel Lopez Obrador.
PRD Founder Calls For Annulment Of Internal Elections
March 24, 2008
Cuauhtemoc Cardenas, the founder of Mexico's main leftist party the Democratic Revolution Party (PRD), said the organization was "irreversibly damaged" by fraud-tainted internal leadership elections and called for an annulment of the March 16 vote. He called for an interim party president to be named until new elections can be held and for the resignation of current party leadership bodies. The moderate wing of the party says that legislative work requires some contact with the executive branch. The moderates worry the PRD could once again be seen as uncooperative or violent. The PRD controls 127 seats in the 500-member Congress, making it the chamber's second-largest party. It ranks third in the Senate with 26 of 128 seats. The party also governs several states as well as Mexico City.
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Justice, Safety & Crime
Canadians Protest Over Mexican Detention Of Canadian Woman
March 19, 2008
A poll in a Canadian newspaper showed that anger is mounting among Canadians over the detention of a conational in a Mexican prison for two years. Brenda Martin, 51, worked as a chef for a man who was convicted of running a massive Internet investment fraud scheme and who is now in a U.S. jail. Martin has been in a Guadalajara prison, in the state of Jalisco, since February 2006 and denies any involvement in the fraud. She has made repeated calls for the Canadian government's help in getting out. The poll found, among other things, that 50% of those interviewed said they would boycott Mexico for their holidays and 44% said they would stop buying Mexican products sold in Canada.
Human Rights Commission Files "Dirty-War" Complaint Against Mexico
March 18, 2008
An international court will review for the first time allegations that the Mexican government failed to adequately resolve the disappearance of a guerrilla sympathizer during the country's "dirty war." The complaint was submitted to the Costa Rica-based Inter-American Court of Human Rights at the request of the nongovernmental organization Mexican Commission for the Defense and Promotion of Human Rights. The case involves the disappearance of Rosendo Radilla, 25, in the state of Guerrero on August 25, 1974. He was allegedly detained by soldiers in the city of Atoyac, then a hotbed of activity by leftist guerrilla groups. Radilla's supporters, who claim the Mexican government has not done enough to resolve Radilla's case or punish those responsible, will have two months to present their case to the court, after which it will schedule hearings.
Army Captures Gulf Cartel Hitman
March 24, 2008
The Defense Ministry (SEDENA) said that a suspected member of "Los Zetas," a group of army Special Forces veterans and deserters who work as gunmen for the Gulf drug cartel, was detained by army troops in the eastern state of Veracruz. Raul Hernandez Barron, a former soldier, was one of those in charge of controlling drug trafficking in the northern part of Veracruz for the cartel. Hernandez, who was carrying an AR-15 assault rifle, a 9mm pistol and 150 rounds of ammunition at the time of his arrest, served in the Mexican army from September 1993 until September 1999. The Gulf cartel's leader, Osiel Cardenas Guillen, was extradited to the U.S. on January 20, 2007.
Authorities Arrest Suspected Leader Of Gulf Cartel's Spy Operations
March 19, 2008
A woman suspected of being the leader of the Gulf drug cartel's "Los Halcones" (the Hawks) squad, which spied on law-enforcement officers, was arrested in the state of Aguascalientes. Veronica Treviño Molina was also the cartel's logistics chief in the said state, where she was arrested along with her suspected right-hand man, Ruben Diaz Mendez. Federal agents seized a list containing the nicknames and expenses of other members of Los Halcones. The arrest of Treviño highlights the growing role of women in Mexico's drug cartels. In 2007, suspected drug trafficker Sandra Avila Beltran, known as the "Queen of the Pacific," was arrested in Mexico City.
Man Carrying Over USD 900,000 In Cash Arrested In Mexico
March 23, 2008
A man carrying more than USD 900,000 in cash was arrested in the city of Guadalajara, in the state of Jalisco, when he arrived on a flight from Canada. Customs agents at the Guadalajara airport found the cash Jose Luis Lora Estrada, 63, was carrying in his baggage and notified federal police, who waited until he picked up his suitcases before arresting him. Lora arrived on a Mexicana de Aviacion flight with his wife, who could not be found, and was heading to the state of Nayarit. The Attorney General's office (PGR) in Jalisco has opened an investigation into possible money laundering by Lora, who faces between 5 and 15 years in prison if convicted on charges that he failed to declare the funds.
Police Seize Ephedrine At Airport
March 23, 2008
Federal police officers seized a shipment of nearly 53 kilos (116 pounds) of ephedrine at Mexico City's Benito Juarez International Airport that arrived in four suitcases from Argentina. The chemical, which was in 50 packets, was being shipped to Leon, a city in the state of Guanajuato, and arrived on a Mexicana de Aviacion flight. A baggage inspection turned up the illegal compound at the airport, where police have made several large drug seizures in recent months. Ephedrine is used to manufacture methamphetamine.
Musician Shot To Death At Concert In Southern Mexico
March 19, 2008
Gunmen opened fire on a band playing at a dance in the southern state of Guerrero, killing the singer and wounding three band members, in the latest in a series of killings of Mexican musicians. Nicolas Villanueva, 38, lead singer for the tropical musical group Brisas del Mar, died from more than 20 bullet wounds. Fellow band members Gaudencio Contreras, 21, Jose Santos Galeana, 17, and Alberto Nava Venegas, 13, were wounded. There was no immediate information on a possible motive for the attack.
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Other
Two Million Witness Live Performance Of The Passion Of Christ In Mexico
March 21, 2008
Some two million people witnessed a live performance of the Passion of Christ in Mexico City's (DF's) Iztapalapa neighborhood, one of the most heavily attended Holy Week celebrations in the world. The number of spectators was 25 times greater than the population Jerusalem was estimated to have had in the time of Jesus – some 80,000 people – and also greater than the number of inhabitants of many cities in Mexico, the second-biggest Catholic nation in the Americas. A theatrical version of the Passion of Jesus Christ and other scenes from the gospels has been staged in Iztapalapa since 1843, 10 years after what locals interpreted as the "miraculous" quelling of an outbreak of cholera that claimed thousands of lives.
Tiny Mexican Porpoise Near Extinction From Fishing Nets
March 18, 2008
Biologists say that the vaquita, a tiny stubby-nosed porpoise found only in Mexico's Sea of Cortez, is on the brink of extinction as more die each year in fishing nets than are being born. A drop in vaquita numbers to as few as 150 from around 600 at the start of the decade could see the famously shy animal go the same way as the Chinese river dolphin, which was declared all but extinct in 2006. The world's smallest porpoise, growing to a maximum of 5 feet (1.5 meters) long and gray in color, vaquitas are so timid that they are hardly ever sighted. Identified only 50 years ago when some skulls were found, vaquitas are tracked using underwater microphones to pick up the high-frequency clicks they use to communicate.
Mexico City Creates Own Tropical Getaways
March 22, 2008
By bringing in tons of sand and palm trees to area swimming pools, Mexico City (DF) officials have built 10 artificial beaches in the city as a relaxation option for the holidays. The makeshift beaches, with their beach chairs and umbrellas, give those unable to travel to more desirable locations a second chance at spring break. It is for families who cannot go to resorts such as Acapulco or Cancun. While creating the fake beaches was not an inexpensive affair for public officials, the tropical sites have been an unequivocal success to date. During the first five days of their existence, the beaches drew a total of more than 70,000 visitors.
Mexican Researchers Discover Antidote Against African Snakebite
March 20, 2008
Researchers from Mexico's National Autonomous University's (UNAM) Biotechnology Institute (IBT) discovered an antidote against African snakebite. The antidote would reduce deaths by 70% and would also alleviate damage caused by these snake attacks. About one million people are affected yearly by these types of snakebites in Africa, of which 500,000 suffer poisoning and at least 20,000 die. The World Health Organization (WHO) summoned the world's scientific communities in 2001 to produce antidotes to fight this problem and its resulting conditions, including amputations. The permit to produce the antidote is currently in the process of being approved; after such approval it can be exported to world communities requesting it.
Film Under The Same Moon Addresses Life On Both Sides Of The Border
March 20, 2008
Under the Same Moon, a film directed by Mexican Patricia Riggen, 36, is the story of a single Mexican mom who makes the painful choice to leave her son behind to work illegally in Los Angeles as a housekeeper. The film seems to have been well received in the U.S. Riggen grew up in Guadalajara, in the state of Jalisco, and now lives in Los Angeles, where she found a culture that allowed her to become a filmmaker. Under the Same Moon, made independently for USD 2 million, played at the 2007 Sundance Film Festival, where Fox Searchlight and the Weinstein Co. bought it for USD 5 million. It was the highest price ever paid at Sundance for a Spanish-language film.
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