Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Yamana Gold (TSX: YRI; NYSE: AUY) announced on Friday a temporary, partial demobilization of its workforce at its gold-silver Cerro Moro mine in Santa Cruz Province, Argentina, in response to the government’s declaration of mandatory social isolation to combat the spread of covid-19.
Until March 31, the day the mandatory self-isolation period is scheduled to end, the company will demobilize local employees and contractors and continue to work with a limited workforce comprised of employees and contractors primarily from out of the province, Yamana said.
Underground operations will be reduced and Cerro Moro will operate during this period largely from its open-pit operations and from stockpiled material.
“These actions are not expected to have a meaningful impact on the company’s production and cash flows as Cerro Moro has performed well so far in the quarter,” the Canadian gold miner said.
Cerro Moro is expected to produce 117,000 ounces of gold and 7.5 million ounces of silver in 2020.
Yamana will also reduce operations at its Agua Rica project in Catamarca.
