Receive our newsletter – data, insights and analysis delivered to you
May 6, 2014

Goldcorp restarts operations at Los Filos mine in Mexico following land settlement

Canada-based gold producer Goldcorp has signed a five year land occupancy agreement with the land-owner group of Mexico, Carrizalillo Ejido (Ejido), and has resumed all operations at its Los Filos mine in Guerrero state.

By admin-demo

Canada-based gold producer Goldcorp has signed a five year land occupancy agreement with the land-owner group of Mexico, Carrizalillo Ejido (Ejido), and has resumed all operations at its Los Filos mine in Guerrero state.

Ejido had suspended Goldcorp’s Los Filos mine operations on 1 April when talks failed over the renewal of the company’s land-use contract, which expired on 31 March.

Ejido submitted a proposal for Goldcorp to increase the rental price per hectare by 1.5oz in addition to the existing 2.5oz rate, and to add a productivity bonus of 1.8oz for each 100,000oz produced per year.

The land-owner group also reported increasing incidences of health and environmental problems due to mining activities at Los Filos mine and urged the company to take remedial action.

"The new agreement will create transport concessions and increase the land rate, employment opportunities and income for communities around Ejido."

Ejido’s negotiating team consisted of individuals, organisations, mining workers and members of the Mexican Network of People Affected by Mining (REMA), and the Mesoamerican Movement against the Extractive Mining Model (M4), which claimed that Goldcorp had cancelled their proposal despite reaping huge profits from Ejido’s lands.

The team alleged that: "We have given our lands and even our lives to your company, for which we deserve dignified and respectful treatment."

Content from our partners
Digitalisation and its impact on the mining industry
Case study: how to save time, cost, and mining interaction for service and dewatering bores
Innovations in mining and the future of the industry

After 33 days of continuous negotiations Goldcorp decided to renew the occupancy agreement, which would allow Ejido to monitor and prevent environmental consequences and health contingencies associated with mining activities, and to improve the social, educational, economic and health benefits of its communities.

Additionally, the new agreement will create transport concessions and increase the land rate, employment opportunities and income for communities around Ejido.

The break from operations at the Los Filos mine is expected to reduce Goldcorp’s estimated gold production for the year, which is between 330,000oz and 345,000oz.

The company has also reconfirmed its overall guidance of between 2.95m ounces and 3.10m ounces of gold for the year.

Los Filos mine in Guerrero State, Mexico, employs more than 2,600 people from the surrounding communities with an estimated 10,000 additional jobs created as a result of the mine’s presence in the region.

Energy

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU