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Mexico Targets Gang That Infiltrated the Mining Industry Mexico Targets Gang That Infiltrated the Mining Industry
(6 months later)
MEXICO CITY — Mexico has stepped up its effort to crack down on one of the most powerful and feared criminal organizations in the country, with arrests and seizures this week aimed not at drug trafficking or extortion but at the gang’s lucrative infiltration of mining and smuggling iron ore to China. MEXICO CITY — Mexico has stepped up its effort to crack down on one of the most powerful and feared criminal organizations in the country, with arrests and seizures this week aimed not at drug trafficking or extortion but at the gang’s lucrative infiltration of mining and smuggling iron ore to China.
The gang, the Knights Templar, has become a violent menace in western Mexico, giving rise to vigilante groups that formed to stop its reign of extortion, kidnapping and murder. That, in turn, forced the government to send the federal police and the military to try to take back a region it conceded had fallen out of state control.The gang, the Knights Templar, has become a violent menace in western Mexico, giving rise to vigilante groups that formed to stop its reign of extortion, kidnapping and murder. That, in turn, forced the government to send the federal police and the military to try to take back a region it conceded had fallen out of state control.
Aside from extortion, one of the gang’s chief sources of income has been its infiltration of the mining industry in Michoacán State and, until the arrival of the Mexican Navy in November, near total control of the Pacific port of Lázaro Cárdenas, the country’s second largest.Aside from extortion, one of the gang’s chief sources of income has been its infiltration of the mining industry in Michoacán State and, until the arrival of the Mexican Navy in November, near total control of the Pacific port of Lázaro Cárdenas, the country’s second largest.
But the government on Monday said it had struck a major blow against the smuggling of lucrative iron ore, an example of the way Mexican organized crime groups have expanded beyond drug trafficking into a diverse range of rackets.But the government on Monday said it had struck a major blow against the smuggling of lucrative iron ore, an example of the way Mexican organized crime groups have expanded beyond drug trafficking into a diverse range of rackets.
More than 400 federal police agents and military personnel raided 11 holding and supply yards in Michoacán, seizing 119,000 tons of minerals at the port and 124 pieces of heavy machinery. Six Chinese citizens were arrested on immigration charges, yet it was unclear what role, if any, they played in the smuggling operations.More than 400 federal police agents and military personnel raided 11 holding and supply yards in Michoacán, seizing 119,000 tons of minerals at the port and 124 pieces of heavy machinery. Six Chinese citizens were arrested on immigration charges, yet it was unclear what role, if any, they played in the smuggling operations.
“Investigations revealed that the holding yards were being used to store a large amount of ore that could be illegally obtained,” said Alfredo Castillo, the federal commissioner in charge of security in Michoacán.“Investigations revealed that the holding yards were being used to store a large amount of ore that could be illegally obtained,” said Alfredo Castillo, the federal commissioner in charge of security in Michoacán.
He said tests would be done to determine which mines were the sources of the ore, in an effort to trace it to the gang.He said tests would be done to determine which mines were the sources of the ore, in an effort to trace it to the gang.
Lázaro Cárdenas is a gateway for Mexico’s growing trade with China, with most of the country’s iron ore exports shipped through it.Lázaro Cárdenas is a gateway for Mexico’s growing trade with China, with most of the country’s iron ore exports shipped through it.
Gangs, however, have capitalized on the Chinese connection. A decade ago, they coordinated with Chinese shipping outfits to bring chemicals needed to produce methamphetamine, according to Raul Benitez-Manaut, a security analyst who studies organized crime in Mexico.Gangs, however, have capitalized on the Chinese connection. A decade ago, they coordinated with Chinese shipping outfits to bring chemicals needed to produce methamphetamine, according to Raul Benitez-Manaut, a security analyst who studies organized crime in Mexico.
From those relationships, he said, the gang moved into the mining industry.From those relationships, he said, the gang moved into the mining industry.
The gang, the authorities said, controls the entire production chain, from extraction and ground transportation to paying off customs authorities and extorting some international companies to ensure the free exit of minerals.The gang, the authorities said, controls the entire production chain, from extraction and ground transportation to paying off customs authorities and extorting some international companies to ensure the free exit of minerals.
Chinese buyers, law enforcement officials have said, have been pressured into buying ore from the gang under threats.Chinese buyers, law enforcement officials have said, have been pressured into buying ore from the gang under threats.
Last April, an official at one of the biggest steel makers, ArcelorMittal, who had publicly denounced illegal mining in the region, was found shot to death outside Lázaro Cárdenas. State officials have said the motive was unclear.Last April, an official at one of the biggest steel makers, ArcelorMittal, who had publicly denounced illegal mining in the region, was found shot to death outside Lázaro Cárdenas. State officials have said the motive was unclear.
The gang’s infiltration of mining has hung over President Enrique Peña Nieto’s effort to strengthen commercial ties with China.The gang’s infiltration of mining has hung over President Enrique Peña Nieto’s effort to strengthen commercial ties with China.
On Twitter on Tuesday, Mr. Castillo posted photographs of the areas raided and said, “Aside from the possible damage to national assets and extortion, there are places where there may be environmental damage” from overmining.On Twitter on Tuesday, Mr. Castillo posted photographs of the areas raided and said, “Aside from the possible damage to national assets and extortion, there are places where there may be environmental damage” from overmining.