VIDEO: Critical minerals race driving resource nationalism
Jimena Blanco, chief analyst at Verisk Maplecroft, says that geopolitical tensions are causing major shifts in global mining policies.
The Turmalina gold mine, operated by Jaguar Mining (TSX: JAG), has been suspended by the Regional Superintendence of Labor of Minas Gerais (SRTE/MG) due to safety risks stemming from a recent tailings pile collapse.
Located in the community of Casquilho de Cima, in Conceição do Pará, the mine—part of Jaguar’s MTL mining complex—was deemed an “unfeasible work environment” following inspections conducted by labor auditors.
The suspension comes after a partial rupture in the tailings pile on December 7 that displaced 255 residents and affected multiple structures in the surrounding area.
According to Brazil’s Ministry of Labor, there remains a significant risk of further collapses within the tailings structure, prompting immediate action to safeguard workers and nearby communities.
News of the suspension caused Jaguar Mining’s stock to fall 3.6% on Tuesday morning. The company’s market capitalization now stands at C$191.9 million ($134 million).
The company said that no workers have been present at the site since the incident, in compliance with a prior directive from the National Mining Agency (ANM).
Jaguar Mining told newspaper Estado de Minas that stabilization efforts are ongoing, stating that the work is “being carried out with the best practices to ensure the health and safety of its workers.”
The Turmalina mine is located approximately 130 kilometers northwest of Belo Horizonte.
In 2022, the underground mine produced 33,117 ounces of gold, accounting for nearly half of the company’s total output. It is part of the broader MTL complex, which includes a 2,000-tonne-per-day processing plant and three satellite deposits—Faina, Pontal, and Zona Basal—alongside the Onças de Pitangui project.
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