Orla Mining has reported that operations at its Camino Rojo mine in Zacatecas, Mexico, have been temporarily halted due to an illegal work stoppage and blockade initiated by unionised workers.
The stoppage and blockade followed talks over two forms of payment.
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One relates to a productivity bonus, and the other is a statutory profit-sharing benefit known in Mexico as Participación de los Trabajadores en las Utilidades (PTU).
The company had already calculated and paid the maximum profit-sharing amount permitted under Mexican law.
While discussions on the productivity bonus continued with union representatives, some unionised workers disputed the profit-sharing payment and then began the illegal stoppage and blockade.
The company is still operating and overseeing all the equipment needed to safeguard the site and surrounding environment.
Furthermore, the stoppage has not complied with the steps set out in Mexican law, including the requirement to submit a strike notice.
Orla is in talks with union leaders with the aim of getting staff back to work and restarting operations safely as soon as possible.
Representatives from the company and the union are due to meet the Department of Federal Labour Conciliation on 2 June.
The company will review whether the disruption could affect its full-year production guidance for Camino Rojo, taking into account how long the interruption lasts and the mine’s heap leach processing.
Meanwhile, in February 2026, Orla completed a preliminary economic assessment for an underground expansion at Camino Rojo.
The assessment considered a move away from the current open-pit heap leach activities towards a stand-alone underground sulphide operation.
Last month, Equinox Gold signed a definitive agreement with Orla to merge and create a new North American gold producer with an implied market capitalisation of $18.5bn (C$25.36bn).
