UPDATE 2-Newmont Goldcorp suspends Peñasquito mine operations in Mexico due to blockade – by Nichola Saminather (Reuters U.K. – April 29, 2019)


April 29 (Reuters) – Newmont Goldcorp Corp said on Monday it plans to suspend operations temporarily at its Peñasquito mine in Mexico due to a blockade by a trucking contractor and some members of the Cedros community.

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 blockade began on March 27, the company said in a statement, adding that it was working with Mexican authorities to resolve the issue.

Newmont Goldcorp shares fell 1.9 percent to $30.88 in morning trade in New York, compared with a 1.7 percent decline in the benchmark S&P/TSX Global Gold Index.

“This increases uncertainty surrounding 2019 operating outlook, and the company has not provided guidance on potential timing for a restart of normal operations or expected impact on 2019 production,” Stephen Walker, head of global mining research at RBC Dominion Securities, said in a note.

For the rest of this article: https://uk.reuters.com/article/newmont-goldcorp-mexico-idUSL3N22B35Q

Comments are closed.