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Suspension over sinkhole lawsuit ‘significantly’ jeopardizes Lundin’s mine in Chile
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Two Canadian-listed miners, together with the world’s largest gold producer, have suffered setbacks at their operations down south, as a Chilean courtroom prolonged the closure of Lundin Mining Corp.’s copper mine as a consequence of a sinkhole whereas labour considerations pressured Newmont Corp. to droop exercise at its gold mine in Mexico.
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An environmental courtroom in Chile on June 8 stated operations at Lundin’s Alcaparrosa copper mine might stay suspended till a trial linked to a lawsuit filed in opposition to the corporate is accomplished. The transfer might “significantly jeopardize” the way forward for the mine, which has remained suspended since July 2022, Lundin’s Chilean subsidiary Minera Ojos del Salado stated in an announcement. It added that it will attraction the courtroom’s determination.
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Lundin suspended underground operations at Alcaparrosa after a 36.5-metre-wide sinkhole appeared close to the mine, which is in Chile’s Atacama Area. The mine is a part of the corporate’s Candelaria mining complicated, which is chargeable for about 44 per cent of its income.
Chile’s State Protection Council (CDE), a authorities company, in Could blamed Lundin for the sinkhole, stating that the corporate was concerned in overexploitation on the mining website. It filed a lawsuit in opposition to the corporate and in the identical month requested the courtroom make sure that the mine remained suspended throughout the interval of the trial.
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“Our firm regrets that, within the first place, the CDE has requested such a measure that significantly jeopardizes the way forward for the mine,” Lundin’s Minera Ojos del Salado stated in an announcement on June 8. “That the environmental courtroom has adopted this determination primarily based on data offered by the CDE that may be certified as, notably, incomplete.”
Different Chilean our bodies have additionally blamed Lundin for the sinkhole. The nation’s environmental watchdog, SME, filed 4 prices in opposition to the Toronto-based miner final 12 months. It stated Lundin extracted extra minerals than approved from the Gaby 4 cave, an space 200 metres beneath the sinkhole. It additionally stated the corporate constructed underground swimming pools to handle floor water in the identical space, which it didn’t have a allow for.
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Lundin, nevertheless, had stated there have been “a number of components” again then that induced the sinkhole, “with mining exercise being a related one.”
At 10:35 a.m. on June 9, Lundin shares had been buying and selling at $9.98 on the Toronto Inventory Change, down 13 cents or 1.2 per cent.
In the meantime, Newmont, the world’s largest gold producer, needed to droop operations at its Peñasquito mine in Mexico after its employees went on a strike. The employees’ union has demanded a doubling of an annual profit-sharing provision to twenty per cent, Newmont stated in a press launch.
“Newmont stays prepared to take part in conciliation conferences to succeed in a decision,” the corporate stated in an announcement.
Newmont added that it tried to resolve the dispute previous to the strike.
Lundin Mining faces $13-million high quality over sinkhole
Newmont set to develop into a serious participant in Canadian mining
The Peñasquito accounts for about six per cent of Newmont’s anticipated gold manufacturing this 12 months. The mine, which employs about 5,000 individuals, additionally produces silver, lead and zinc.
At 10:30 a.m. on June 10, Newmont shares had been down about 1.2 per cent to $55.45.
• E mail: nkarim@postmedia.com | Twitter: naimonthefield
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