Renewable Energy

Newmont Goldcorp resumes operations at Peñasquito gold mine in Mexico

Newmont Goldcorp said on Monday it had resumed shipping concentrate from the Peñasquito gold mine in Mexico after a blockade by a trucking contractor and some members of the Cedros community was lifted.

Adds details on resumption, background on blockade

June 17 (Reuters) - Newmont Goldcorp NEM.N said on Monday it had resumed shipping concentrate from the Peñasquito gold mine in Mexico after a blockade by a trucking contractor and some members of the Cedros community was lifted.

Operations at the mine were temporarily suspended since April 29.

Delivery of supplies to the site have also resumed, Newmont said, adding that the downtime from the suspension was used to bring forward maintenance on some systems and equipment.

Truck drivers have blocked access to the mine since March 27 and the protesters say its operations caused a water supply to dry up. At the end of April the company suspended production, then payments and benefits to villages surrounding the site.

The temporary shutdown had worried some analysts on the expected impact on 2019 production. However, the company has so far provided any figures surrounding it.

The open-pit mine, in northern Zacatecas state, produced 272,000 ounces of gold in 2018, company figures show. It accounts for about 17 percent of Newmont Goldcorp's net asset value, according to Scotiabank.

The mine was part of the portfolio of Goldcorp, whose acquisition Newmont completed in April to become the world's biggest gold producer.

(Reporting by Arathy S Nair in Bengaluru; Editing by Shailesh Kuber)

((arathys.nair@thomsonreuters.com; within U.K. +44 020 7542 1810, outside U.K. +91 80 6749 3863; Reuters Messaging: arathys.nair.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More