Cosalá Operations To Resume in 2021By Paloma Duran | Tue, 05/18/2021 - 11:07
Americas Gold and Silver released its financial and operating results for 1Q21, as well as the company's plan to reopen its Cosalá Operations, which are expected to be fully operational by 3Q21.
Americas reported revenues of US$10.2 million and a net loss of US$91.8 million during this year´s first quarter. The company announced it expects to reach a resolution to resume activities at Cosalá Operations, with the objective that all workers return to work and achieve full production in 3Q21. Americas emphasized that the long-term stability of operations will also depend on the government support.
Cosalá Operations comprises 67 mining concessions covering approximately 19,385ha in Sinaloa. It includes the San Rafael mine where, since Jan. 26, the company’s mining operations have been illegally blocked by its union, under the argument that the company must improve working conditions. However, Americas has explained that these are false accusations and that it is being extorted, reported MBN.
Previously, the company met with Mexican officials in an effort to resolve the dispute at its San Rafael mine. Americas Gold and Silver President & CEO Darren Blasutti, announced it has spoken with the Mexico´s Interior Minister Olga Sánchez, Economy Minister Tatiana Clouthier, Labor Minister Luisa Maria Alcalde and the Canadian Ambassador to Mexico, Graeme Clark, to come up with strategies and solutions to the union problem. Americas highlighted that it has worked with the Canadian government and the SRE to provide more solutions and avoid an arbitration process between Canada and Mexico, reported MBN.
In the press release, Blasutti said the company is close to reaching a resolution to the illegal blockade of its mine and having its employees return to work in the coming months. . The resolution comes after several efforts made by the company and the federal government, who have sought to address the conflict with key decision makers, including President López Obrador, and establish an effective framework to return and maintain operations in the long term.
Americas explained that the resolution was mainly achieved thanks to the commitment and support for the first time from the state and federal government. The company said that if all goes according to plan and the law is enforced, the company is expected to resume full operations this year.
Americas also noted that silver prices will help the company target higher-grade silver minerals in San Rafael and develop its silver-copper project. These silver-rich areas are expected to increase silver production to 2.5Moz per year, following the lifting of the illegal blockade.