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.
Shares in B2Gold Corp (TSE:BTO) lost more than 3% on Wednesday after the company said that violence broke out at its El Limon mine in Nicaragua when the national police attempted to clear access to the mine.
According to a press statement, one policeman died and there were “several injuries and significant material damages.”
Access to the mine has been blocked for nine days by “a small group of workers, community members, and other persons not affiliated with El Limon Mine”.
The town itself currently remains calm according to B2Gold, adding that hundreds of locals and mineworkers met on Tuesday to publicly ask for resumption of operations.
According to Vancouver-based B2Gold, the illegal blockade commenced at the conclusion of a legal process instituted to dismiss three employees who were complicit in initiating prior illegal blockades. The dismissal was reviewed and sanctioned by the Ministry of Labour.
The company is maintaining its 2015 production guidance “subject to a timely resolution, management expects output of 55,000 – 65,000 ounces of gold representing some 11% of 2015 consolidated guidance.
“Production year to date at the mine has met or exceeded budget,” B2Gold said.
In 2013 hundreds of small miners in Nicaragua protested against B2Gold’s expansion plans for its La Libertad mine in the central region of the central American country.
Comments
Dylan E McFarlane
could the artisanal mining have a greater multiplier and positive impact than the new mine? were the ‘barefoot prospectors’ responsible for the discovery of the mine?