Newmont Goldcorp (NYSE: NEM) (TSX: NGT) confirmed on Wednesday the lift of an almost four-week illegal blockade affecting its Peñasquito gold-silver mine in Mexico, which will cost the company thousands of lost bullion output.
The world’s No. 1 gold miner said operations
remained temporarily halted at the northern Zacatecas mine, but noted it was working
closely with the federal and state governments toward a sustainable, long-term
solution.
The civil action, one of the many affecting the mine over the past three years, is expected to wipe out 11,000 ounces of gold, 1.7 million silver ounces, 13.7 million pounds of lead and 22.8 million pounds of zinc from Peñasquito’s third-quarter production, the company said.
While blockade has been listed, operations remained temporarily halted.
Truck drivers, landowners and residents, and truck drivers have now returned to the negotiation table, demanding compensation from Newmont Goldcorp for alleged environmental damages caused by the mine. They are also requesting access to clean water for local communities.
Their protest come on the heels of an earlier 80-day blockade, lifted in June.
The Canadian company said Peñasquito
has already improved water availability for the mine’s 25 neighbouring
communities through a number of projects, including water treatment plants, new
wells, pipelines and water trucks, along with 90 other infrastructure and
community development projects.
The operation directly employs more
than 6,500 people and supports another 20,000 indirect jobs in the region, Newmont
Goldcorp said.
The Vancouver-based miner said in September it had offered $25 million in community investments and land rental fees to resolve the conflict, but that the proposal was rejected.
Later the same moth, Mexican President Andres Manuel López Obrador accused some of the protest leaders of seeking money rather than legitimate social goals. He asked the parties involved in the conflict to resolve their differences.
The open-pit mine produced 272,000
ounces of gold last year, accounting for about 17% of the combined company’s
net asset value and 4.2% of the Newmont Goldcorp’s total projected 2019 gold
output of 6.5 million ounces.
About 70% of foreign-owned mining companies operating in Mexico, the world’s No.1 silver producer, are based in Canada.