SMM compiled, McEwen Mining Inc. (NYSE:MUX) (TSX:MUX) reported on Monday that its El Gallo project in Mexico was suspended because nearby community members illegally blocked the main access to the property.
According to McEwen, some members involved in the blockade believe that McEwen should increase its annual payments to local communities and improve infrastructure.
, El Gallo has been living in harmony with the local community since it began mining in 2012 and has maintained long-term support for the local community, the company said in a statement. Under the circumstances, the current situation is surprising.
The site has the least staff, who are responsible for maintaining appropriate safety and security as well as environmental systems. The company is currently negotiating a peaceful settlement of these issues.
The El Gallo mine in Sinaloa, Mexico, has been carrying out residual heap leaching of gold since the third quarter of 2018 and is expected to contribute 3-4 per cent of its gold production by 2021.
