TORONTO (miningweekly.com) - Shares in Vancouver-based New Gold fell 13,4% on Thursday, after the company said it had suspended mining operations at the Cerro San Pedro mine, in Mexico.

After a ruling by the Federal Court of Fiscal and Administrative Justice, Mexico's State environmental protection agency nullified the mine's 2006 environmental impact statement and the Mexican environmental enforcement agency issued an order requiring the operation to suspend mining, New Gold said.

The company is continuing with gold recovery of the existing inventory on the leach pads and said that it will pursue "all legal appeals" and is seeking "immediate remedies".

New Gold has also filed a new environmental impact statement with local authorities.

"This is a continuation of a decade of challenges from a group of individuals largely from outside the area who are opposed to the mining operations at Cerro San Pedro," CEO Robert Gallagher said in a statement.

"We are taking all possible steps to respond to challenges to our legal ability to operate the mine, and believe that we will resume full operations."

New Gold maintains the mine has been operating in full compliance with required permits and government authorisations.

Later in the day, nongovernmental organisation MiningWatch Canada said that New Gold's Mexican subsidiary was informed on October 14 of the ruling by the court to remove the EIS, and that the mine has been operating illegally since then.

In a statement, the organisation said that lawyers for Frente Amlio Opositor, the local coalition that took New Gold to court, were preparing criminal charges and civil suits against New Gold and its Mexican subsidiary.

MiningWatch Canada also said that workers from the mine had attacked villagers in retaliation for the mine's closure.

New Gold shares slid C$0,61 on Thursday, to C$3,93 apiece by 14:42 in Toronto.

The gold miner, which was formed last year from the three-way merger of juniors Metallica Resources, New Gold and Peak Gold, also has mines in the US and Australia and development projects in Canada and Chile.