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First Majestic Plans Phased Restart Of La Encantada Operations

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(Kitco News) - Operations at First Majestic Silver Corp.’s (NYSE: AG; TSX: FR) La Encantada Silver Mine in Mexico will be restarted on a phased-in basis during the coming weeks, the company said.

Just ahead of the weekend, First Majestic Silver Corp. announced that it had reached a tentative agreement with the National Union of Miners, Metallurgists, Steelworkers and Similar Workers of Mexico for the restart. The company said workers had halted activities through a blockade on May 20 after some did not agree with the bonus that the company and the union had previously agreed to offer the miners in lieu of profit sharing.

Since then, First Majestic and the union worked together to resolve the dispute, the company said.

First Majestic’s website says the mine is expected to produce between 2.6 million and 2.9 million ounces of silver in 2017. The company’s first-quarter earnings report said output from January through March was 707,479 silver ounces.

“I am very pleased by the responsiveness and cooperation we have received from the National Union in working with us towards finding a solution that satisfies all parties,” said Keith Neumeyer, president and chief executive officer of First Majestic. “La Encantada is one of the largest employers in the area and is crucial to the overall health of the local economy.”

The company said it is planning to implement a reinduction and retraining process for the union miners as soon as this week. Mine production is now expected to restart by mid-June before ramping up to full production by the end of June.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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