Chilean strike, extreme weather interrupt Cerro Grande’s Pimenton mine
TORONTO (miningweekly.com) – Canadian miner Cerro Grande Mining expects its earnings in its fourth fiscal quarter ended September 30 to be adversely affected by the obstruction of the road serving its Pimenton mine, in Chile.
Striking subcontract workers at Chilean mining major Codelco’s Andina copper/gold mine and a six-day snowstorm had been the cause and as a result Cerro Grande was unable to make shipments of copper concentrate and gold doré, as well as receive a shipment of fuel oil for Pimenton.
Earlier this month, Cerro Grande accused the strikers of hijacking a Pimenton truck on route to the mine while it was waiting at a nearby rail crossing, stealing a load of timber to feed their roadside fires.
Compounding matters, a snowstorm that started on August 8 had dumped about 2.6 m of heavy wet snow on Pimenton, causing mine operations to shutter for three days and plant operations to be shut down owing to a lack of fuel.
The storm triggered a massive destructive avalanche that completely closed the road for days. The road was partially opened on Tuesday.
During the six months ended March 31, Cerro Grande had produced 3 499 oz of gold at Pimenton, down from 5 200 oz produced in the same period of 2014.
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