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La Guitarra silver mine in México state. La Guitarra silver mine in México state.

Economics triggers temporary shutdown of Canadian-owned silver mine

Owner First Majestic will explore the potential for selling the property

The Canadian mining firm First Majestic Silver Corporation has announced the temporary suspension of work at its México state silver mine La Guitarra, located in the municipality of Temascaltepec.

The suspension is scheduled to start on August 1 and will continue until economic conditions improve or the property is sold.

The company said the allocation of capital and resources to projects with better economics were taking priority.

Production began to drop in 2016, at a time when operation costs surged and silver prices plunged, leading to an “unsustainable” situation.

A skeleton crew will be kept on to perform maintenance.

“We value our relationship with our employees and local communities,” said the firm. “Taking this decision has not been easy. During this period, we will honor the terms of the agreements we have with nearby communities and will work with them to manage this situation in the best way possible.”

The firm will also offer its laid off employees guidance and training so that they can find employment quickly elsewhere.

“As part of our permanent commitment with transparency and legality, we will continue to report in a timely manner on the conditions and situation at the mine, as well as all processes related to this suspension,” concluded the statement.

The mine was founded in 2003 and purchased by the Canadian firm nine years later.

Source: Milenio (sp)

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