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.
A couple of days after negotiations started at Goldcorp’s Peñasquito mine in Mexico, the bullion producer announced it reached an agreement with protesters blockading the site.
Landowners, truck drivers, and residents of the nearby town of Mazapil had been protesting since September 26th in demand for jobs, compensation for environmental damages, and clean water for their communities.
According to Reuters, the state government mediator in the conflict, Julio César Chávez, said the company promised to renew contracts with carriers, expand and establish two health centers, improve infrastructure in the nearby city, and study the water and air to assess whether it should compensate communities for alleged contamination.
The Vancouver-based giant, on the other hand, issued a statement Friday saying it had commenced ramp up mining operations at Peñasquito, following the controlled shutdown it had to implement on October 3rd. “The Company is expected to meet its overall production and cost guidance for 2016 of between 2.8 and 3.1 million ounces of gold at all-in sustaining costs of between $850 and $925 per ounce,” the press release reads.
Comments
J. D. Baker
How – specifically – is Goldcorp responsible for commitments to:
“expand and establish two health centers, improve infrastructure in the nearby city”?
How and why does MX federal and local government feel these are Goldcorp responsibility? What is cost for these? Are costs properly accounted for in project budget, negotiations and detailed contract with MX federal, local government? If so has government met all its obligations and commitments?