Argentina’s largest gold mine restarts operations

Operations at Argentina’s largest gold mine at Cerro Negro in Santa Cruz have recommenced from today following a stoppage led by the Asociacion Obrera Minera Argentina (AOMA) Union. Mining operations came to a complete halt after the union began a strike on March 8.

Canada’s Goldcorp Inc. owns the mine. Santa Cruz provincial government stepped in and issued a conciliation resolution which Goldcorp accepted. Analysts believe any prolonged stoppage could be detrimental to the mine meeting its production target of 2.2-2.4m ounces this year. The mining company increased its production in the latter part of 2018, at 4,000 tons of ore per day.

The same union went on a strike in 2015, over working conditions. This was resolved by the provincial government laying out measures to be implemented by Goldcorp.

The mine produced 489,000 ounces of gold in 2018 at an all-in sustaining cost of $535 per ounce. Newmont Mining Corp has recently approached Goldcorp with a friendly takeover bid, valued at US$10bn.

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