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Sierra Metals suspends production at its Yauricocha mine due to community protests

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(Kitco News) - On Thursday, Sierra Metals (TSX: SMT) reported that a group of residents from the nearby town of Alis have illegally blocked the main access road to the Yauricocha mine, operated by the company’s subsidiary, Sociedad Minera Corona.

According to the company’s statement, the mine production continues to be suspended with activities limited to critical operations to ensure proper safety and maintenance.

The company said that its representatives have taken part in constructive dialogue with the members of the group, including requests organized by the Peruvian government.

“As a road blockade is a matter of public concern, the company has involved the local authorities for their mediation and assistance in resolving this matter,” Sierra
Metals noted in a press-release.

The company also said that due to the uncertainty of timing on the resolution of this dispute and the potential delay in the progressive restart of production at the mine, 2022 production and financial guidance has been suspended.

Sierra Metals is a diversified Canadian mining company with green metal exposure including increasing copper production and base metal production with precious metals byproduct credits, focused on the production and development of its Yauricocha mine in Peru, and Bolivar and Cusi mines in Mexico.

Yauricocha is an underground polymetallic mine located in western central Peru in the Yauyos province, approximately 12 km west of the Continental Divide. Yauricocha is Sierra Metals’ flagship operation with over 70 years of continuous production. The mine produces zinc, copper, silver, lead, and gold.

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