Goldcorp Resumes Work at Mexican Mine

resources | BCBusiness
Protestors camped at the Los Filos mine site in April

Goldcorp has resumed work at its Los Filos mine in Mexico after resolving a one-month dispute with local landowners

Goldcorp Inc. has resumed operations at its Los Filos gold and silver mine in Mexico after concluding an agreement with local landowners.
The mine, which has been in operation since 2007, suspended operations on April 2 this year when Goldcorp and local landowners failed to come to terms over renewal of Goldcorp’s five-year land-occupancy agreement. The landowners were seeking an increase in payment for use of the land, in addition to attention to health and environmental concerns.
According to the Ejido Carrizalillo, the group representing local landowners, the agreement reached this week includes an increase in rent from the equivalent of 2.5 ounces of gold per hectare to 4 ounces of gold per hectare, plus an annual six-per-cent increase. The Los Filos mine consists of 20 concessions totalling 4,622 hectares. The group also says the agreement includes broader social benefits in education and health, and improvements in worker conditions.
Goldcorp was unable to confirm the monetary terms by deadline, but a spokesperson said that the negotiations were primarily economic, and that the agreement would not significantly affect Goldcorp’s previously projected production cost at Los Filos of $1,002 per ounce of gold in 2014.
The Los Filos mine produced 332,400 ounces of gold in 2013, 12.3 per cent of Goldcorp’s total annual gold production. The company expects the mine to produce between 330,000 and 345,000 ounces of gold in 2014. At the end of 2013 the mine employed 1,900 people, including full-time salaried non-union staff, hourly union workers, and contractors.