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.
Impulsora Minera Santa Cruz, a mining company that operates its namesake silver-lead-zinc mine in Mexico’s Zacatecas state, decided to shut down operations for six months due to an environmental investigation that is being carried out by the Federal Attorney for Environmental Protection.
In a press conference reported by local media, Miguel Adalberto Díaz, Santa Cruz’s general manager, explained that the investigation started in 2014 -when the mine had a different owner- and is related to the permitting of the tailings facility.
According to Díaz, since Santa Cruz has invested $9.5 million to improve the plant, buy new equipment and finance exploration activities, the halt only responds to the need to assess the operation’s compliance with Mexico’s environmental regulations, update the permits and present the required reports.
In the meantime, however, 319 workers will be laid off but some will be given the option to relocate to other operations owned by Santa Cruz near the towns of Charcas, San Luis Potosí and Zimapan.
Located in the Vetagrande municipality, Santa Cruz produces 15,000 tonnes of silver, lead and zinc concentrate per month.
