Mexico-based Santacruz Silver Mining has reported the rupture of a pipeline connecting the Rosario Mine tailings impoundment to a secondary settling pond.

The pipeline rupture ocurred at the company’s Rosario Mine in San Luis Potosi, Mexico, causing water and some tailings material to be discharged outside of the treatment system.

Santacruz said it has notified all appropriate regulatory and governmental authorities.

Together with Mexico’s environmental authorities and tailings impoundment consultants, the company’s engineering team is working to ensure appropriate remediation procedures are followed and to determine the cause of the incident.

"Environmental matters are a priority for our company and as such we are taking all necessary steps to properly address this incident."

During this process, the company has closed its Rosario Mine milling facility, which will not resume production activities until remediation steps have been completed in-line with recommendations from technical consultants.

According to the company, production will be shutdown for several weeks.

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By GlobalData

Santacruz Silver Mining president Arturo Préstamo said: "Environmental matters are a priority for our company and as such we are taking all necessary steps to properly address this incident and resume operations promptly."

Santacruz has a producing mine, Rosario, two advanced-stage projects, San Felipe and Gavilanes, and an early-stage exploration project, El Gachi.

The company’s technical team develops, operates and discovers silver mines in Mexico.