Newmont Goldcorp gradually resuming operations at Mexico mine
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 US-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 Denver- headquartered company 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 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, the company says.
About 70% of foreign-owned mining companies operating in Mexico, the world’s No.1 silver producer, are based in Canada.