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Equinox Gold’s Los Filos mine suspends operations over blockade

The Los Filos mine’s reputation has been tainted by a history of disagreements with landowners. (Stock Image)

Operations at the Los Filos mine in Mexico have been suspended, after blockades by a group of unionized employees and members of the Xochipala community, Equinox Gold announced on Tuesday.

The group is demanding payments in excess of their contractual agreements.

The Canadian miner had already suspended activities at the operation in September after locals blocked access.

The company withdrew 2020 production and cost guidance for the mine, which had been expected to produce 90,000-110,000 ounces of the company’s 470,000-530,000 total guided ounces of gold for the year.

The Los Filos complex began commercial production in 2008. The operation consists of two large open pits (Los Filos and Bermejal) and one underground mine. 

Midday Tuesday, Equinox’s stock was down nearly 4% on the TSE. The company has a C$2.8 billion market capitalization.