Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
IRL’s Corihuarmi gold mine in Peru. (Image from 2013)
Canadian miner Minera IRL (TSX:IRL)(LON:MIRL) said Monday it has halted operations at its Corihuarmi gold mine in Peru after around 100 locals invaded the site over the weekend.
While the company did not specify what protesters were demanding, it did mention that officials were scheduled to meet with representatives of the town of Atcas later today to negotiate a solution.
The stoppage represents a new challenge for the Latin America-focused precious metals miner, which has also been struggling with community relations near its Ollachea exploration gold project in southern Peru.
Investors reacted negatively to the news. Shares were down around 13.7% in London at 11:30 am.
2 Comments
Matt
Its called communication and companies that cannot or will not do it properly are doomed to failure. CSR are as important as land tenure and Au price.
Christopher Kuntz
Matt – I just sent an email to the company indicating that I work with many First Nations here in Canada to help them create partnerships. I think you are correct with your statement on Communications……………I would also like to add that all companies now operating globally, need to have meaningful partnerships with the local Indigenous population, or projects are set to fail……………..the idea that rural people are uneducated is becoming rather obsolete. I hope to get a discussion with this company, based on my email, and qualified interest in mining projects around the world………….Talk soon.