Euridice González
Country Manager Mexico
Coeur Mining
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Mining Responsibly While Achieving Production Goals

By José Escobedo | Thu, 03/24/2022 - 16:44

Q: How did the company perform in 2021?

A: 2021 was an especially important year for Coeur Mining, characterized by elevated levels of investment, both in our multiyear exploration program and robust pipeline in the US. In 4Q21, our Palmarejo mine delivered strong results with a 14 percent increase in its throughput. The Palmajero mine’s 2021 total gold production was at the high end of guidance, while silver was also in line with our expectations. Our strategic planning for operations, underground mining and development also progressed significantly, in part leading to this increase in production.

Q: Why did Coeur sell its La Preciosa project and how did it allocate the resources it gathered from this transaction?

A: The sale of the La Preciosa project to Avino was a strategic decision. The company believes it will accelerate value creation from this asset via this transaction by supporting Avino’s team to incorporate La Preciosa into its nearby operation. The transaction is consistent with our capital allocation framework and allows us to prioritize a higher return on growth from our US and Canada-based development projects.

Q: What were the company's main social achievements at the Palmarejo mine?

A: Palmarejo continues to operate in a socially responsible manner. In 2021, Palmarejo once again was the recipient of the Socially Responsible Enterprise award. It was the 11th time that we received this honor. Coeur aims to continue and build upon its efforts to support the communities surrounding Palmarejo, including our social responsibility programs. Last year, Coeur was able to start a crucial program to support vulnerable families. We have a list of 42 families from communities around San Jose de Guazapares and started a program called “Dignified Housing.” Through this program, we help families refurbish their houses by providing proper ceilings and floors. Furthermore, we supply them with the necessary tools to create spaces in which they can grow some fruit and keep farm animals. This helps communities to build small farms and boosts their economic development.

Q: What are the other benchmarks of Coeur’s social approach?

A: Another important project was the upgrade of the Hydraulic water infrastructure system in the communities of Santa Clara and San José de Guazapares. In partnership with Franco Nevada (Barbados) Corporation we installed a reliable water source doubling the water supply and providing over 270 people access to clean water.

We also created a Community Center, where we aim to organize training to boost the community’s technology and computer abilities. Due to the pandemic, neither students nor teachers were able to take proper school classes or other types of training, so we plan to offer online courses for specific school subjects, while also creating other online and hybrid programs.

For more over a decade Coeur has provided free medical care to the surrounding communities in the region between the two municipalities that we operate in Chinipas and Guazapares district. Approximately 40 communities surrounding Palmarejo receive this assistance.

Q: What are the company's 2022 exploration plans for Palmarejo?

A: In 2021, we successfully completed the largest exploration program in the history of our company. Our yearly exploration investment in Palmarejo increased 31 percent from 2020 to 2021, up to US$14 million. We expect to have a lower exploration investment in 2022, with approximately 22 percent of our investment targeting Palmarejo.

Q: How is the company providing a safe environment for employees, preventing both accidents and COVID-19 infections?

A: The health and safety of the company’s team is a top priority. During this unprecedented global pandemic, we implemented safety plans that kept our employees secure at our operational mine sites. In fact, the U.S. National Institute for Occupational Safety and Health (NIOSH), part of the U.S. Centers for Disease Control and Prevention, acknowledged our COVID-19 safety plans and presented us with the 2021 Mine Safety and Health Technology Award.  

Q: What is the status of the company’s relationship with the state government?

A: Mining is an important industry in Mexico. Coeur Mining has a long history of mining gold and silver at the Palmarejo complex in Chihuahua. Since September 2021, we have taken the opportunity to collaborate with the new Chihuahua state administration and introduce our business to those with direct responsibilities in the mining sector. This includes the local Ministry of Innovation and Economic Development and Gov. María Campos, who we believe to be. supportive of mining.

Q: What factors make 2022 a promising year for Coeur Mining?

A: We are looking ahead and will work to maintain a focus on our health and safety protocols. Coeur will continue to bolster its ESG initiatives. Our largest project, in Nevada, continues to be our focus as we remain on schedule and budget. Once completed, this expansion project is expected to represent a major change for our company.

 

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with four wholly-owned operations: the Palmarejo silver-gold complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the Wharf gold mine in South Dakota.  In addition, the Company wholly-owns the Silvertip silver-zinc-lead development project in British Columbia and has interests in several precious metals exploration projects throughout North America.

Photo by:   Coeur Mining
José Escobedo José Escobedo Senior Editorial Manager