I have talked to Michel many times about Mexico and the political risks and about drug cartel risk. The drug issues are confined to certain areas of the country well away from ECU operations and politically Mexico has good mining laws after the overhaul in the 1990's. If I was from downunder I would be more worried about the political risk associated with the recent attacks on the mining industry and over taxation proposals by the political class, this is a potential investment threat that is real and current.

I talk frequently to people who run companies based in Mexico and who travel there all the time, they mostly laugh about these articles that crop up every 6 months about Mexico and some think there are more risks in some areas of US cities from crime associated violence or your more likely to be assaulted by some over zealous airport security person. Mexico is a member in good standing of the North Amercian Free Trade Agreement (NAFTA) and as such this provides certain remedies and comfort for companies investing in Mexico.

Although Mexico has some problems and is far from perfect, I think most countries have problems as well and should pay attention to those instead. For example in Canada we have a history in Quebec for shooting up the National Assembly and gunning down defenceless women from engineeering school and terrible violience associated with bikers and separatist bombers in the past, not to mention our share of mass murderers in Ontario and BC. These crimes are every bit as henous as anything in Mexico and probably moreso. Mexicans are really a rather friendly group of people with most law abiding citizens just like Canada, Switzerland, US and Canada.

There is more risk that Canada will split apart or that US debts will bankrupt many communities causing riots and civil disobedience or that Europe will burn from riots associated with spending cuts than Mexico having a civil war but I guess anything is possible in this soon to get crazier world.