TSX-listed miner Sierra Metals has suspended all mining and milling activity at its Yauricocha mine, in Peru, after unionised workers downed tools over contractor changes in a strike that is deemed illegal.
The employees belong to the Union of the Mine and Metallurgical Workers of Minera Corona, which represent about 66% of the employees at Yauricocha.
Mining and milling activities were suspended early on Tuesday, for the safety of employees, Sierra Metals said in a statement late on Thursday.
“Precautions have been taken to safeguard all employees as well as the plant, property, and equipment during the strike. Management believes that this strike action will not materially affect the company’s annual production guidance or mine budget,” said president and CEO Igor Gonzales.
The guidance for the group, which also includes the Bolivar and Cusi mines, in Mexico, is silver-equivalent production of between 19.5-million and 21.8-million ounces, copper equivalent production of between 107-million to 119.9-million pounds, and zinc equivalent production of between 261.5-million and 292.9-million pounds.
When the company provided its guidance for 2019 in February, it said that Yauricocha should realise higher copper production, owing to consistent copper head grades and improvement to recoveries expected from the various areas planned to be mined from the copper areas in the Esperanza zone.