Minera Peñasquito reaches settlement with Cerro Gordo Ejido of Mexico over land rights issue

12 March 2015 (Last Updated March 12th, 2015 18:30)

Goldcorp subsidiary Minera Peñasquito has reached a definitive court approved settlement with the Cerro Gordo Ejido, a group of Mexican locals, relating to surface land rights to 600ha of land located within the confines of the Peñasquito Mine site.

Penasquito

Goldcorp subsidiary Minera Peñasquito has reached a definitive court approved settlement with the Cerro Gordo Ejido, a group of Mexican locals, relating to surface land rights to 600ha of land located within the confines of the Peñasquito Mine site.

The mine is expected to produce 700,000oz and 750,000oz of gold in 2015.

Cerro Gordo Ejido commenced an action against Peñasquito in Mexico's agrarian courts in 2009 challenging the land-use agreement, when the company negotiated for use of the land prior to the mine construction.

"According to Goldcorp, the settlement that was reached resolves the dispute completely."

On 18 June 2013, the agrarian courts ruled that the agreement was null and ordered the land to be returned to the Cerro Gordo Ejido, following a series of legal proceedings.

According to Goldcorp, the settlement that was reached resolves the dispute completely.

Concurrently, a new thirty year surface land use agreement has been signed by the parties on commercial terms for the land.

Goldcorp Latin America senior vice-president Joe Dick said: "We are pleased to have reached a resolution to this issue and wish to thank the Mexican Government, in particular the Secretariats of Economy (SE), of the Interior (SEGOB) and of Agrarian, Territorial and Urban Development (SEDATU), and the State Government of Zacatecas for their efforts to help bring these negotiations to a successful conclusion."

Peñasquito Mine employs approximately 4,250 employees and contractors and is the largest gold producer in Mexico.


Image: Peñasquito Mine will produce 700,000oz and 750,000oz of gold in 2015. Photo: courtesy of Goldcorp.