First Majestic Plans Phased Restart Of La Encantada Operations
(Kitco News) - Operations at First MajesticSilver Corp.'s (NYSE: AG; TSX: FR) La Encantada Silver Mine in Mexico willbe restarted on a phased-in basis during the coming weeks, the company said.
Just ahead of the weekend, First Majestic Silver Corp. announced that it had reached atentative agreement with the National Union of Miners, Metallurgists,Steelworkers and Similar Workers of Mexico for the restart. The company saidworkers had halted activities through a blockade on May 20 after some did notagree with the bonus that the company and the union had previously agreed tooffer the miners in lieu of profit sharing.
Since then, First Majestic and the union worked together toresolve the dispute, the company said.
First Majestic's website says the mine is expected toproduce between 2.6 million and 2.9 million ounces of silver in 2017. Thecompany's first-quarter earnings report said output from January through Marchwas 707,479 silver ounces.
"I am very pleased by the responsiveness and cooperation wehave received from the National Union in working with us towards finding asolution that satisfies all parties," said Keith Neumeyer, president and chiefexecutive officer of First Majestic. "La Encantada is one of the largestemployers in the area and is crucial to the overall health of the localeconomy."
The company said it is planning to implement a reinductionand retraining process for the union miners as soon as this week. Mineproduction is now expected to restart by mid-June before ramping up to fullproduction by the end of June.
By Allen SykoraFor Kitco News
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asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities,securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |