Excellon Resources Denies Discrimination Against Workers
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Excellon Resources Denies Discrimination Against Workers

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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Tue, 03/29/2022 - 14:08

Excellon Resources denied having discriminated against the workers of the La Platosa mine, after Carlos Pavón Campos, Leader, National Metallurgical Mining Union, accused the company of trying to incriminate miners who support the strike. The company stressed that it remains open to dialogue and aims to reach a resolution soon.

In March, the National Metallurgical Mining Union, also referred to as the Platosa Union, initiated labor action at Excellon Resources' La Platosa mine in Durango after the company refused to increase workers' wages. Excellon explained that it is currently facing serious problem at its mine, such as drainage issues, price increases and legislative changes, adding it hopes that miners can understand the company’s situation.

Last week, Pavón denounced that after the start of the strike, miners from the Platosa Union have been harassed and sabotaged by the company Servicios San Pedro, which is part of Excellon. The union argued that the company uses its permission to provide maintenance to the mine granted by the Federal Board of Conciliation to take away objects and damage infrastructure to blame strikers. Pavón said the union is considering going to the Canadian Human Rights Commission to file a complaint against Mine Manager John Graham for not respecting their right to strike and framing them.

Excellon highlighted that its mines in Mexico operate under the principles of inclusion, respect, dialogue and equality among all stakeholders. In addition, the company highlighted that miners at La Platosa mine have one of the most generous compensation structures in the Mexican mining industry and have benefited greatly from both improved metal prices and productivity in recent years.

“Graham has always treated all collaborators with total respect in accordance with our values as an organization. In addition, he has allocated resources to provide support, not only to members of the local union but also their families and the community in general. He has done an incredible job that has allowed workers in 2021 to earn double what they earned in 2017,” said Brendan Cahill, CEO, Excellon.

Adding to this tense situation, Excellon Resources announced that the company would evaluate the economic viability of operating its Platosa project beyond 2H22 at the start of this year. Over the past two years, the company has faced the impact of dropping rates, an increase in consumables prices, legislative changes and now union action. The company said it would provide an update on its decision as its mining plans for 2022 are being carried out, which include advanced exploration work and strategic alternatives to unlock the value of its main assets.

Photo by:   Excellon Resources

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