Mexico miners hit by blockades

Residents have set up blockades at several Mexican mining assets in recent weeks, impeding operations despite calls for dialog.

Access is being blocked to at least three mines in some cases over alleged environmental impacts – which miners claim to have mitigated.

PEÑASQUITO

The most high profile blockade is at Newmont Goldcorp's Peñasquito mine, one of Mexico’s biggest gold, silver, lead and zinc producers.

Members of the San Juan de Cedros community blocked access to the Zacatecas state asset in mid-September, after lifting a previous three-month blockade in June.

Community leaders rejected an offer by the company which included construction of sports and recreation facilities, local press reported, claiming they have not been compensated for impacts on water resources.

Newmont Goldcorp said it has invested in measures to improve water availability in communities around Peñasquito, as well as 90 other infrastructure and community development projects.

The original blockade, by a trucking company and residents, followed former owner Goldcorp's refusal to meet demands for cash payments or a monopoly on haulage work, the company told BNamericas previously.

President Andrés Manuel López Obrador this week called on both parties to resolve the dispute, calling Peñasquito an important provider of employment.

While reasonable demands should be considered, the president said corrupt community leaders have at times used blockades – apparently linked to environmental issues – to seek personal gain.

SIERRA MOJADA

Silver Bull Resources halted work on its Sierra Mojada silver-zinc project in Coahuila state due to a blockade by local miners group Sociedad Cooperativa de Exploración Minera Mineros Norteños.

The blockade is related to an ongoing lawsuit by the group, which is seeking wage and royalty payments for its members, despite no work being carried out by the group and the fact the project has yet to enter production, the company said in a release.

A final court ruling is pending.

"In an attempt to force Silver Bull into making a settlement before this final court ruling is issued, Mineros Norteños has undertaken to illegally block access to the project," the release said.

All operations have been stopped to ensure safety while a resolution is sought.

The company said it remains committed to dialog to seek a solution acceptable to both parties.

Silver Bull last year granted South32 an option to form a 70:30 JV to progress Sierra Mojada to production.

MINERA AUTLÁN

A group of truckers and residents has blocked access to a manganese mine in Hidalgo state-run ferroalloy producer Minera Autlán since September 10, local press report.

Truckers are demanding haulage contracts, while residents complain of negative environmental impacts, including pollution of the Claro river, local news website am.com reported.

The company has denied causing environmental impacts, stating that it has always operated in accordance with regulations, the report said.

Manganese mining is a key plank in Autlán’s business, which also includes ferroalloy, gold mining and hydroelectric divisions.

OUTLOOK

Blockades have long been a thorn in the side of Mexico's miners.

At Peñasquito, operations have been halted on numerous occasions over the past five years as truckers and residents have blocked access routes.

Torex Gold also suffered repeated blockades at its El Limón-Guajes gold mine in Guerrero state, most notably a three-month stoppage by supporters of an outside union around end-2017.

While environmental damage and worker rights are often the reasons given by the groups behind the blockades, the root cause is often financial.

Many mining operations are located in remote areas with acute levels of poverty, and blockades can be viewed – rightly or wrongly – as an easy way to secure cash.

Aside from tabling talks, Mexican authorities have been unwilling to intervene by lifting blockades by force.

The recent spate of blockades is further evidence of the willingness of communities to take on mining companies in the hope of securing a payout.