BUENOS AIRES – The provincial government of Argentina repealed a mining legislation last week, putting a silver mine belonging to Pan American Silver (NASDAQ 🙂 back in limbo.

The law was repealed by Chubut Province in Argentina’s Southern Patagonian Region after violent protests and demonstrations. Open-pit mining would have been allowed in two locations, which includes the location of Pan American Silver’s Navidad Silver project.

The law was approved last week. Government buildings in Rawson, the provincial capital, were set ablaze, roadblocks were erected, and there were clashes in the streets.

Navidad was put on hold in 2013 after it violated provincial regulations banning open-pit mining. Due to the possibility of contamination, locals and environmental groups oppose the mining of silver or lead.

On Monday, Chubut Governor Mariano Arcioni tweeted that “We have decided not to repeal the law” and promoted a plebiscite in the provinces to hear all voices.

Pan American Silver didn’t immediately respond to our request for comment.

Argentina, which is one the 10 largest silver producers in the world, has announced that it will increase mining production to support its fragile economy.