Los Filos Mine Will Continue Operating

The Canadian company Equinox Gold announced it will continue its operations at the Los Filos mine, despite previous blockades that caused delays in investment and halted operations. 

The company had planned to invest US$318 million in the property to build a carbon-leaching plant, with which production would increase from 200,000oz/y of gold to 280,000oz/y. Los Filo’s peak production is estimated between 2025 and 2030 when the company predicts to produce 360,000oz/y. The processing plant will start operating in 2H24. 

Greg Smith, CEO, Equinox Gold, said that the company does not yet have immediate plans to continue with the expansion due to various reasons, of which two were decisive: The need for capital in other projects such as Greenstone and the continuing community blockades, which the company has denounced as illegal.

Recently, Smith announced that any decision to proceed with the Los Filos expansion would be made considering the operating stability of the region, market conditions and availability and cost of capital. Moreover, “Equinox Gold is currently focused on the construction of its Greenstone Mine in Ontario, Canada, and advancing the permitting to expand its Castle Mountain Mine in California, USA,” added Smith.

Los Filos has been a challenge to operate. Nevertheless, the mining company continues to invest in the mine and its promising underground deposits. It is expected to produce between 155,000 and 170,000oz this year. 

On Sept. 8, 2022, the company reported that its Los Filos operations were suspended because of a blockade by inhabitants of the Mezcala community, which impeded the company from receiving supplies essential to its operations. Equinox did not report why the protests were taking place. The company said that even though the blockade is unlawful, it is nevertheless committed to surrounding communities and open to dialogue.

This is not the first time that Los Filos has grappled with blockades. In the past, Equinox Gold faced both community disputes and unionized worker protests. On Sep. 3, 2020, inhabitants of the El Carrizalillo community blocked access to the mine for two months, as the inhabitants argued that the company did not comply with their social collaboration agreement. The situation escalated, leading President López Obrador to offer to mediate.