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.
The world’s most valuable gold miner Goldcorp (TSE:G) (NYSE:GG), said that despite the suspension of its Sauzal mine in Mexico, it expects to produce around 1 million ounces of the precious metal in the region this year.
The figure, Reuters reports, represents about a third of the Canadian miner’s total estimated gold output for 2014.
The Vancouver-based company suspended mining at El Sauzal a month ago, as a safety precaution after instability in the pit wall.
But local press is reporting the miner has already abandoned the operation, which is in its last year of active mine life.
“About 400 workers have been informed of the decision and the Mexican company backed by Canadian capital has committed to spend three years in remediation activities,” Luis Alba Solis, director of mines at Mexico’s Minister of Economic Affairs, was quoted as saying by El Diario mx (in Spanish).
El Sauzal, in Chihuahua State, in the western part of the Sierra Madre mountain range, was expected to produce between 60,000 and 70,000 ounces over the remainder of 2014.
Goldcorp expects to produce between 2.95 million and 3.10 million ounces of gold this year, up on 2.67 million ounces in 2013.
Image: Independence Monument in Mexico city, via Wikipedia.
