Pan American Silver halts ops at Argentina mine as union, workers clash

TORONTO (miningweekly.com) – Primary silver producer Pan American Silver on Sunday reported that operations at its Manantial Espejo mine, in the province of Santa Cruz, Argentina, had come to a halt since last week Wednesday, after a labour conflict with the union of mineworkers had resulted in a work stoppage.The Vancouver-based company reported that essential power supply, mine dewatering, maintenance and safety-related work activities at the mine continued normally.

Pan American said it remained open to dialogue with the union and that it hoped for a prompt resolution to the conflict.

“At the moment, management believes that the situation can be resolved without jeopardising its full-year consolidated production projections,” the company said in a statement.

Manantial Espejo last year produced 3.58-million ounces of silver, 183 700 oz of gold at cash costs of $7.33/oz of payable silver, net of by-product credits. The mine was expected to produce between 3.6-million and 3.8-million ounces of silver this year, and between 64 600 oz and 68 100 oz of gold at cash costs of $9.25/oz to $10.75/oz of payable silver, net of by-product credits.

On a consolidated basis, Pan American expected to produce between 24-million and 25-million ounces of silver in 2016, and between 175 000 oz to 185 000 oz of gold at cash costs of $9.45/oz to $10.45/oz of payable silver, net of by-product credits.