{"id":1175650,"date":"2020-04-02T07:45:35","date_gmt":"2020-04-02T13:45:35","guid":{"rendered":"https:\/\/www.mining.com\/?p=1019048"},"modified":"2020-04-02T07:45:35","modified_gmt":"2020-04-02T13:45:35","slug":"mexicos-mining-halt-to-hit-silver-supply","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1175650","title":{"rendered":"Mexico\u2019s mining halt to hit silver supply"},"content":{"rendered":"<p>Mexico, the world\u2019s largest silver<br \/>\nproducer, has become the latest country to enforce a suspension of<br \/>\nnon-essential activities in response to the outbreak of the coronavirus<br \/>\npandemic, after confirmed cases climbed above 1,000, with 29 deaths.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>The government decree, effective until<br \/>\nApril 30, is expected to have a significant impact on the supply of silver<br \/>\nat a time when demand for silver coins is high.&nbsp;<\/p>\n<p>With the exception of Newmont<br \/>\nMining (NYSE: NEM),&nbsp;<a href=\"https:\/\/www.mining.com\/argonault-suspends-mining-in-mexico\/\">Argonaut<br \/>\nGold<\/a> (TSX: AR), <a href=\"https:\/\/www.panamericansilver.com\/news\/news-releases\/detail\/99\/2020-04-02-pan-american-silver-provides-operations-update-in-response-to-covid-19\">Pan<br \/>\nAmerican Silver<\/a> (TSX: PAAS) and <a href=\"https:\/\/www.sierrametals.com\/investors\/news-releases\/news-release-details\/2020\/Sierra-Metals-Announces-30-Day-Suspension-of-Its-Mexican-Mining-Operations-in-Accordance-With-the-Government-Suspension-of-Non-essential-Activities-to-Contain-the-Advancement-of-the-COVID-19-Virus-in-Mexico\/default.aspx\">Sierra<br \/>\nMetals<\/a> (TSX: SMT), which have all announced temporary&nbsp;suspensions of<br \/>\nits Mexican mines, resource companies present in the country have yet to react<br \/>\nto the government\u2019s order, despite a warning that those flouting the order will<br \/>\nface fines or prosecution.<\/p>\n<p>Newmont, which operates the Pe\u00f1asquito mine in the state of Zacatecas, said it was taking steps towards a safe and orderly ramp down of operations at the asset, which is the country\u2019s largest gold mine, second biggest silver mine and one of the top producers of zinc and lead.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Mexico is the world&#8217;s largest silver miner, accounting for roughly 23% of world production.<\/p>\n<\/blockquote>\n<\/figure>\n<p>Argonaut has <a href=\"https:\/\/www.mining.com\/argonault-suspends-mining-in-mexico\/\">confirmed<br \/>\nthat it is stopping mining<\/a>, crushing and stacking activities, but given<br \/>\nthat it operated heap leach mines, metal production and metal sales will<br \/>\ncontinue during the suspension.<\/p>\n<p>Pan American, which operates<br \/>\nthe La Colorada (Zacatecas, pictured) and Dolores (Chihuahua)&nbsp;mines, has<br \/>\nalso begun to voluntarily reduce throughput by about 10% to 20% at its&nbsp;Timmins&nbsp;operation<br \/>\nin&nbsp;Canada,&nbsp;hoping to further enhance physical distancing at<br \/>\nthe site.<\/p>\n<p>Last year, La Colorada produced 8.2<br \/>\nmillion ounces of silver, while Dolores\u2019 output came in at 5.1 million ounces.<\/p>\n<p>Toronto-based Sierra Metals is only<br \/>\nmaintaining an essential services crew at its Bolivar mine site until April 30<br \/>\nand its Cusi mine site has already been placed into care and maintenance.<\/p>\n<p>Bolivar, an underground mine with a<br \/>\n3,600 tonnes-a-day processing capacity, had previously been expected to produce<br \/>\n16,402 &#8211; 18,225 tonnes of copper-equivalent this year, while the Cusi<br \/>\nunderground mine was slated to generate between 1,732 and 2,126 silver ounces.<\/p>\n<h2><strong>Pushing for an exemption<\/strong><\/h2>\n<p>Mexican industry leaders are<br \/>\npushing for an exclusion to the temporary halt of non-essential activities.<br \/>\nThey argue that mining should be allowed to continue due to its importance to<br \/>\nnational supply chains and the wellbeing of host communities.<\/p>\n<p>Mexico is responsible for nearly<br \/>\n23% of world production of silver, churning out more than 200 million ounces last<br \/>\nyear, up from 196.6 million ounces in 2018. It also has major copper and zinc<br \/>\nmines, operated by Grupo Mexico and Southern Copper, and produces a significant<br \/>\namount of gold, making the mining sector responsible for about 4% of the nation\u2019s<br \/>\ngross domestic product.<\/p>\n<p>&#8220;To define the mining sector<br \/>\nas non-essential, is not only to economically affect thousands of workers, but<br \/>\nalso to leave 656 communities alone where we operate and to whom we provide<br \/>\nbasic health services,&#8221; Fernando Alan\u00eds, president of the Camimex Mexican<br \/>\nmining chamber, <a href=\"https:\/\/twitter.com\/falaniso\/status\/1245140148272144384\">said via Twitter<\/a>.<\/p>\n<p>The industry body\u2019s call was<br \/>\nmirrored by the Sonora state branch of the Mexican association of mining<br \/>\nengineers, metallurgists and geologists (AIMMGM).<\/p>\n<p>\u201cWithout the operation of the<br \/>\nmining industry various isolated communities would be affected by a decrease in<br \/>\nhealth services which are so important in the current situation. It is<br \/>\nimportant to find a balance,\u201d mining representatives of Sonrora, Mexico\u2019s top<br \/>\ngold and copper producing region,&nbsp;<a href=\"https:\/\/twitter.com\/AIMMGMSonora\/status\/1245182026736717830\">said on<br \/>\nTwitter<\/a>.<\/p>\n<p>Scotiabank&nbsp;analysts Ovais<br \/>\nHabib and Trevor Turnbull said in a note they believed businesses that would<br \/>\nsuffer irreparable harm as a result of the suspension should be exempted.<\/p>\n<p>\u201cIn our opinion, mining could fall<br \/>\nunder this on a case-by-case basis,\u201d they added.<\/p>\n<p>People close to the matter, who<br \/>\nasked to remain anonymous, <a href=\"https:\/\/www.mining.com\/web\/mexican-miners-to-keep-working-essential-projects-during-coronavirus\/\">told<br \/>\nReuters<\/a> that some companies will be allowed to continue with some activities<br \/>\nin an effort to avoid the \u201cparalyzation\u201d of future operations, as well as to<br \/>\npromote mine safety.<\/p>\n<p>The measure would also save about<br \/>\n2.6 million direct and indirect jobs, the sources noted, adding that an<br \/>\nofficial decision on the matter is expected as early as next week.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The country is the world&#8217;s largest miner of the metal, accounting for roughly 23% of world 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