A man who died in a shootout in western Michoacan state yesterday "has been identified as Nazario Moreno," also known as "El Chayo," a government official said ahead of a press conference set to take place at 7:00 pm.
The previous Mexican government reported that Moreno, a leader of the La Familia cartel, was killed in December 2010. But his body was never located and reported sightings fueled speculation he was alive.
"All signs point to this being 'El Chayo,'" a government official had said earlier on condition of anonymity about the suspect killed yesterday.
Michoacan is known as Mexico's lime-and-avocado heartland, but it is also the country's top producer of iron ore, extracting four million tonnes in 2012, or 27 per cent of national output, according to the economy ministry.
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The Knights Templar gang snatched the underground riches to diversify its business, which includes the production of crystal meth and extortion rackets against fruit growers, tortilla makers and municipal officials.
The drug cartel has illegally extracted iron ore, using the Pacific port of Lazaro Cardenas to export the mineral to China, officials say.
Moreno was a founder of La Familia Michoacana, which spawned the Knights Templar after his presumed death.
He was considered the cartel's spiritual leader, having penned a "bible" used to indoctrinate recruits.
The Knights' current leader is Servando "La Tuta" Gomez.
After Moreno's alleged death in 2010, he was turned into a saintly figure in Michoacan, with shrines built in his honor.
Yet people in Michoacan were always convinced that Moreno had survived the 2010 shootout with federal police. Vigilante militias that formed last year pressed the government to arrest him.