Newmont Goldcorp offered $25m in social projects to end mine conflict
MEXICO CITY – The world's top gold producer, Newmont Goldcorp, said on Wednesday it had offered $25-million in community investments and land rental fees to resolve a conflict at its Penasquito gold mine in Mexico, but activists said they are unsatisfied.
Operations at the openpit mine located in northern Zacatecas state, which produced 272 000 oz of gold last year, have been suspended since last weekend because of a blockade by protesters.
"We have made a very generous offer of social investment, but the blockade leaders are demanding hundreds of millions of dollars in cash for themselves," said Michael Harvey, director of external relations for Newmont Goldcorp Mexico.
Felipe Pinedo, a local leader who has helped organize blockades of the mine in the past, denied Harvey's allegation in a phone interview with Reuters.
"The problem isn't an issue of money; it's an issue of life," said Pinedo. "The people here are clear: They will accept the projects but give us back our water."
He argued that the company's spending in the surrounding Cedros community was a fraction of the profits from the mine that leave Mexico.
The Newmont Goldcorp proposal put forward at negotiations with the community include a 30-year pledge to operate a water treatment plant, a 12-year deal to lease local land and the promise to invest in a production or infrastructure project, the company said in a statement.
The mine directly employs more than 6 500 people, including 315 local residents, the company added.
Penasquito accounts for about 17% of Newmont Goldcorp's net asset value, according to a Scotiabank estimate from earlier this year.
Operations at the mine have been intermittent since March due to protests. Some protest leaders said they wanted payment to compensate for damage to the local water supply.
The mine was part of the portfolio of Goldcorp, whose acquisition by Newmont was completed in April to form the world's biggest gold producer.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation