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.
Canadian miner Mandalay Resources (TSX: MND, MND.WT) resumed operations at its Cerro Bayo project in Chile today, after protestors removed blockades, allowing supplies in and out of the mine.
In the statement, the company said the interruption would not affect its annual production or outlook, adding that protestors have begun negotiations with the local government.
Demonstrations in the Aysen Province of Chile began in mid-February, closing the local port and several roads in reaction against the government’s move to reduce fuel subsidies.
The company said it is going ahead with its ramp up plans for the project and working to return to normal production levels.
For the three months ended Dec. 31, 2011, the Cerro Bayo mine produced 2,109 ounces of gold and 395,296 ounces of silver.
Residents in Aysen, a sparsely populated Chilean Patagonian realm of glaciers and forests, have triggered controversy by asking neighbour Argentina to “adopt” them because they feel forgotten by Chile’s government. They have lit bonfires, blocked roads and clashed with police in a campaign for more support from the capital Santiago, 1,300km to the north.
