Orla Mining Resumes Camino Rojo Ops After Illegal Blockade

Orla Mining resumed operations at its Camino Rojo gold mine in Zacatecas on June 5, 2026, following a four-day illegal blockade by unionized workers disputing a productivity bonus and profit-sharing payment, resolved through federal labor mediation. The incident adds to the mine's elevated labor compliance profile, which already includes a March 2026 USMCA Rapid Response Mechanism ruling finding severe violations of workers' freedom of association. 

Orla Mining resumed operations at its Camino Rojo gold and silver mine in Zacatecas, Mexico on June 5, 2026, after an illegal work stoppage and blockade by unionized workers that halted production for four days. With operations back online, the company reiterated its 2026 gold production guidance for the mine of 110,000oz to 120,000oz.

"We are pleased to welcome our employees back to work and thank the union and the Mexican Labour Authority for their partnership in resolving the matter," said Jason Simpson, President and CEO, Orla Mining. "We look forward to continuing our dialogue with the employees and union partners to reach a mutually beneficial agreement on the productivity bonus."

From Stoppage to Resolution

The blockade began June 1, when unionized workers initiated a work stoppage that did not follow the procedures required under Mexican law, including the filing of a strike notice. The action stemmed from two separate disputes: ongoing negotiations over a worker productivity bonus and disagreements over a profit-sharing payment, known in Mexico as PTU. The company said it had previously calculated and paid workers the maximum profit-sharing entitlement stipulated under Mexican law, but members of the unionized workforce objected to that amount and initiated the stoppage.

A meeting between Orla Mining, the Mining Workers' Union, and the Mexican Department of Federal Labour Conciliation, originally scheduled for June 2, took place on June 3. During that session, the Labour Authority confirmed that the blockade was illegal and directed union leadership to communicate that determination to its members and lift the blockade. All parties ratified that the action fell outside the bounds of the collective bargaining framework.

By June 4, union leadership had committed to instruct workers to end the blockade and return to normal operations. Orla stated that should the blockade not be lifted in line with the agreement, the company would pursue additional steps in coordination with labour authorities. Operations resumed on June 5.

Bonus negotiations between Orla and the union are set to continue, with a future date agreed upon contingent on the restoration of normal mine operations.

A Mine With Elevated Labor Exposure

The stoppage is the latest in a series of labor-related developments at Camino Rojo. In March 2026, a panel established under the USMCA's Rapid Response Labor Mechanism issued a ruling finding a "severe" denial of labor rights at the mine, determining that Camino Rojo had interfered in union activities by favoring the Minas Union over the then-incumbent Los Mineros union through coercion and intimidation. The panel proposed nine remedial measures, including reinstatements, compensation, and a public apology.

"Today's determination further underscores the important role of the RRM in leveling the playing field for American workers and ensuring that facilities in Mexico cannot gain an unfair advantage by violating workers' rights to freedom of association and collective bargaining," US Trade Representative Ambassador Jamieson Greer said at the time. "I intend to continue to use the RRM to the fullest extent to enforce Mexico's labor obligations under the USMCA."

Operations and Strategic Context

Camino Rojo is an open-pit, heap leach gold and silver mine covering more than 139,000ha in Zacatecas. The property contains both oxide and sulphide mineral resources. A February 2026 Preliminary Economic Assessment for an underground project beneath the existing open pit outlined an after-tax net present value of US$1.3 billion and a 30.2% internal rate of return at a base gold price of US$3,100/oz, with average annual production of 215,000oz. At a spot price of US$5,000/oz, the after-tax NPV reaches US$3.3 billion.

The mine's labor situation carries additional significance in light of Equinox Gold's announced acquisition of Orla Mining in a transaction valued at approximately US$18.5 billion, disclosed on May 13, 2026. The combined entity is expected to produce 1.1Moz of gold annually, with Camino Rojo serving as a material component of the merged asset base alongside Equinox's Los Filos complex in Guerrero. Existing Equinox shareholders will hold approximately 67% of the combined company, with Orla shareholders retaining the remaining 33%.

Orla said it remains committed to respecting the labor and union rights of its employees while maintaining compliance with Mexican law and its own internal policies. The company said it would provide further updates as bonus negotiations advance.