PERTH (miningweekly.com) – ASX-listed Titan Minerals has announced that its 91%-held subsidiary Core Gold would indefinitely suspend all of its production operations and commercial activities in Ecuador, owing to a force majeure resulting from the Covid-19 pandemic.

The Canadian gold miner in March temporarily suspended operations at its Dynasty Goldfield mine, in Ecuador, after a government decree regarding gatherings, travel and transport within the country affected the company’s ability to operate the mine.

The company at the time said that it would maintain the workforce at Dynasty to conduct care-and-maintenance activities, and special projects in order to minimise the impacts of the temporary shutdown, while also conducting a workforce and working capital review.

However, Core this week said that effective immediately, all labour and contract relationships have been terminated.

The decision was taken as a direct consequence of the extended health emergency resulting from the Covid-19 pandemic, and the restrictions and measures taken to contain the spread of the virus.

“Ecuador continues to suffer the health and economic impacts of the Covid-19 pandemic. The government of Ecuador and the companies operating in the country have been obligated to take difficult decisions that impact everyone,” Core Gold CEO Mark Bailey said.

“The forced suspension of production operations plus the uncertainty as to when the government-mandated transportation and supply restrictions will end, have resulted in a situation that impedes restarting operations for an indefinite period.

“We understand the impact that the suspension of production will have on our employees and their families. This was a very difficult decision, the result of a deep and careful analysis of the current situation, various scenarios, and future prospects, but unfortunately there was no alternative action possible for the company,” Bailey noted.

Titan on Thursday said that it was continuing to engage with Core in respect to its operations and various corporate matters, and was monitoring and assessing Core’s operations and commercial activities.