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(Kitco News) - Fresnillo (LSE: FRES) announced today that operations at the Herradura mine operated by the company's wholly owned subsidiary, Minera Penmont ("Penmont") were temporarily suspended following an illegal stoppage by a very small group of Penmont's unionized personnel.
“The stoppage, which prevented site access for other workers, was not approved by the union, nor supported by the vast majority of unionized workers at Herradura, with whom Penmont has a very constructive and long-term relationship,” the company said in a statement.
Fresnillo noted it confirms the stoppage has now ended and workers have returned safely to the site, with all production activities having re-started immediately, adding that all environmental monitoring and other safety measures were retained during the temporary suspension.
Importantly, the company said the stoppage is not expected to have a material impact on overall production (estimated to be around 1% of total sales volume in terms of annual equivalent gold ounces).
“As such, there is no change to our 2023 full year production guidance,” Fresnillo said.
Herradura is one of Mexico’s largest open-pit gold mines, producing 55.0% of the group’s total gold (2022) and generating 24.4% of total adjusted revenue.
Fresnillo is the world's largest primary silver producer and Mexico's largest gold producer.
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