(Adds comment from environment prosecutor)
MEXICO CITY, Sept 22 (Reuters) - Shares in miner Grupo Mexico fell sharply on Monday to their lowest price in nearly three months after heavy rain last week triggered an overflow from two dams at its Buenavista mine just weeks after a massive toxic spill.
Grupo Mexico shares lost 4.79 percent to 44.33 pesos following the announcement on Sunday by the mine of the new spill. The stock pared back initial losses of close to 6 percent.
Mexico’s environment prosecutor said in a statement that the new spill contained rain water and ferrous metals at levels that were not harmful to humans. The agency said it was supervising the cleanup of the August spill at the Buenavista mine, located in the northern state of Sonora.
The company had to set aside $151 million for a cleanup fund for last month’s spill - a punishment some thought would be the end of the matter. ]
But the latest overflow, coupled with a deterioration of the relationship between the company and the state government of Sonora, raised speculation that Grupo Mexico could face tougher punishments, said Gerardo Roman, head of stock trading at Actinver brokerage in Mexico City.
“I think it’s incredibly attractive to buy at this (price,)” said Roman. “The more it falls, the more attractive it becomes. But this situation is going to take a while to be sorted out.” (Reporting by Veronica Gomez and Gabriel Stargardter Editing by W Simon)