Canadian-owned gold mine in Mexico shut down as protesters blockade site

VANCOUVER—GoldCorp Inc. is shutting down operations at its Peñasquito mine in central Mexico temporarily as “illegal” protesters continue to block access to the site.

The blockade has been in place since Sept. 26—and according to the Canadian gold miner, is the result of a dispute with a local trucking contractor triggered when the company made changes to its supply chain. Reuters, meanwhile reported late last week the blockade also involves demands for jobs and compensation for water use and environmental damage.

“Goldcorp remains committed to respectful negotiations with the trucking contractor’s representatives,” the Vancouver-based mining firm said in a statement. “The Company has taken all necessary legal steps, including filing criminal charges against the protest leaders and awaits legal enforcement to ensure a swift and orderly end to the illegal blockade.”

Located in the province of Zacatecas, northwest of Mexico City, the company said the mine supports 10,000 direct and indirect jobs and is a major driver of the region’s economy. The company has a contingency plan in place and said it will restart mining and processing operations immediately after resolving the dispute.

Goldcorp said it does not expect the ongoing blockade to impact its overall production or cost guidance for 2016.