Goldcorp shuts Mexico gold mine after week-long blockade (Reuters U.S. – October 3, 2016)

Canada’s Goldcorp Inc (G.TO) said on Monday it was temporarily shutting down operations at its Peñasquito gold mine in Mexico, following a week-long blockade by a trucking contractor to protest the miner’s plans to diversify its local transportation supply chain.

Its shares fell more than 3 percent. The Peñasquito mine in northern Mexico produced 860,300 ounces of gold in 2015, a quarter of Goldcorp’s total output.

The world’s third-biggest gold producer by market value said it did not expect the shutdown at its biggest mine to impact overall production or cost estimates for 2016.

A contingency plan was in place that would allow mining and processing to be restarted immediately once the issue was resolved, Vancouver-based Goldcorp said.

The temporary shutdown was a “slight negative” for Goldcorp’s shares, RBC Capital Market analyst Stephen Walker said in a note to clients. Last Thursday, Goldcorp said it expected to resolve the blockade, which started on Sept. 26, quickly.

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