VANCOUVER (miningweekly.com) – Canadian miner Kinross Gold has laid off about 300 workers at its Maricunga mine, in Chile, after it was forced to suspend operations earlier than planned, owing to a court ruling upholding a local regulator’s resolution to close the mine’s water pumping wells.

Kinross previously stated that it planned to suspend mining at Maricunga in the fourth quarter, owing to other capital priorities in its global portfolio. However, Reuters reported last week that Kinross was looking to sell the asset in a bid to exit the jurisdiction.

Chile’s environmental regulatory authority started a legal proceeding in March to force closure of the pumping wells. The sanction, issued in July, substantially reduced water pumping at Maricunga, which caused the mine to suspend mining and crushing activities and to curtail processing at the end of that month.

Kinross does not expect its overall production and cost guidance to be impacted despite the earlier suspension.

The company adds that it continues to vigorously oppose the regulator’s “unprecedented actions” and has various appeals pending with Chile's environmental tribunal. Kinross says it disagrees with the original resolution on which the subsequent orders are based as it is, in its opinion, technically and legally flawed and relies on contested scientific findings.

The Atacama region, where Maricunga is located, has also suffered from a protracted drought for many years, resulting in a drop in groundwater levels across the region that is unrelated to the mine's operations.

At December 31, the Maricunga mine had estimated proven and probable mineral reserves of 1.04-million ounces, estimated measured and indicated mineral resources of 4.28-million ounces and estimated inferred mineral resources of 1.05-million ounces.

Kinross resumed operations at its Tasiast mine, in Mauritania, in mid-August, following its temporary suspension caused by an expatriate work permit issue.