Newmont Goldcorp (NYSE: NEM) (TSX: NGT) is re-starting production at its Peñasquito gold-silver mine in Mexico, after the second blockade at the operation this year was lifted in early October.
The world’s No. 1 gold miner has started
a 10-day process of bringing the operation back to full production, with
support from the state and federal governments and an ongoing police presence.
“We appreciate the
government’s efforts to uphold the law by assuring ongoing access to and from
Peñasquito while continuing to sponsor the dialogue process, should that
continue to be needed,” president and CEO Tom Palmer said in the statement.
The Canada-based miner had resumed operations at Peñasquito in June after a 80-day blockade, one of the many affecting the mine over the past three years. However, it halted it again on September 14 as the blockade returned.
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 month, 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 dispute 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.
It directly employs more than 6,500
people and supports another 20,000 indirect jobs in the region, according to Newmont
Goldcorp.
About 70% of foreign-owned mining
companies operating in Mexico, the world’s No.1 silver producer, are based in Canada.