Silver Bull escalates arbitration against Mexico seeking $374.9 million

In Canada, on April 25, 2025, Silver Bull Resources, Inc. submitted its Reply to Mexico's Counter-Memorial regarding its international arbitration claim against the United Mexican States. This arbitration was initiated by Silver Bull on June 28, 2023, under the USMCA and NAFTA agreements, with the case being heard by the International Center for the Settlement of Investment Disputes (ICSID). The core of the dispute arises from Mexico's refusal to address an ongoing illegal blockade affecting Silver Bull's Sierra Mojada Project, which has persisted since September 2019. Despite a ruling from Mexican courts dismissing the claims of local miners responsible for the blockade, the company has been prevented from accessing its property for over five years, as the government has not enforced the law to remove the blockade. In its civil proceedings, Silver Bull alleges that Mexico has unlawfully expropriated its investments without compensation and failed to offer fair treatment or protection under the NAFTA agreements. As a result, the company has updated its damages claim to include a total of $374.9 million, which covers both damages incurred and accumulated interest. Silver Bull appointed Boies Schiller Flexner (UK) LLP as its legal counsel due to their expertise in international investment arbitration, particularly in the mining sector. Silver Bull's CEO, Tim Barry, remarked on the unfortunate circumstances that have blocked ongoing development and maintained their position against the illegal blockade initiated by a small group of local miners. As the arbitration progresses, Mexico faces a deadline until August 26, 2025, to respond further before a scheduled hearing begins on October 6, 2025. Silver Bull maintains that it must receive protection under international treaties as a remedy to the losses it has endured due to the blockade and Mexico's negligence in resolving the matter at hand. The outcome of the arbitration could have significant implications not only for Silver Bull but for other foreign investments in Mexico's mining sector, underlining the importance of enforcement of legal agreements and the protection of investments against local disruptions. The case emphasizes the broader issues of political and economic stability in Mexico, as the legal environment for foreign investors continues to be scrutinized amidst ongoing disputes and concerns over the efficacy of local legal protections. As both parties prepare for the upcoming hearing, the stakes remain high for all involved, indicating the heightened tension between foreign companies and local actors in resource-rich nations.