TORONTO (miningweekly.com) – Silver producer Fresnillo does not expect any material financial impact or loss of production after a pipe carrying nontoxic waste between the plant and tailings dam at the Saucito mine, in Mexico, burst on Sunday.
Fresnillo on Wednesday said the Mexican Environmental Authority had concluded in its initial review that the situation was of limited scale and, as a result, operations had not been suspended.
The LSE- and Mexican Stock Exchange-listed miner said 85% of the affected area had already been remediated and that it expected to conclude all the remediation activities by Friday.
Fresnillo’s LSE-listed stock slid 6p on Tuesday, to 662.50p apiece.
The company, which operated six mines in Mexico, said an investigation into the cause of the incident was under way.
The Saucito mine produced 4.74-million ounces of silver and 19 254 oz of gold in the quarter ended September 30.