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 Tuesday that the company will scale back operations at its Canadian Malartic mine in northwest Quebec.
The decision follows discussions held with representatives of the government of Quebec, which ordered temporarily restriction to all non-essential business until April 13 due to the coronavirus outbreak. As a result, Yamana’s operations will be placed on care and maintenance, and minimal work will be taking place until the date specified in the order.
Canadian Malartic, a 50/50 joint venture with Agnico Eagle, is one of Canada’s largest gold mines. It produced 170,084 ounces of gold in the fourth quarter of 2019.
There are currently no suspected or confirmed cases of covid-19 at Canadian Malartic or any of Yamana’s operations, and a return to full capacity at Canadian Malartic is expected to occur in an expedited manner as soon as the temporary restriction is lifted, the company said.
Additionally, Yamana has temporarily demobilized operations at its Cerro Moro mine in Argentina due to the mandatory self-isolation period and travel restriction imposed by the national government.
