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Be the first with the news that moves the market- Following a mandate from the Federal Government, Agnico Eagle Mines (TSX:AEM) is suspending all its Mexican operations
- The Pinos Altos, Creston Mascota and La India sites will be placed on care and maintenance until April 30, 2020
- Employees at these projects will continue to receive their base remuneration
- So far, the company has reported one case of COVID-19 at its Kittila mine in Finland
- Agnico Eagle Mines (AEM) is currently up 4.31 per cent to C$61.71 per share, with a market cap of $14.85 billion
Following a mandate from the Federal Government, Agnico Eagle Mines (TSX:AEM) is suspending all its Mexican operations.
A nation-wide shutdown extension has been announced for all non-essential businesses until April 30 which, unlike many other countries, includes the mining industry.
The decision comes as Mexico’s COVID-19 cases spiked to 1,094 earlier this week, with 28 confirmed deaths.
As a result, Agnico Eagle has said that its Pinos Altos, Creston Mascota and La India projects will be put on a care and maintenance schedule until the decree is lifted. Exploration activities at other sites will also be temporarily suspended.
The company says that its actions should allow for a timely and safe re-start when business resumes as normal.
Employees at the Mexican sites will continue to receive their remuneration packages for the duration of the suspension.
Agnico Eagle was quick to point out that, to date, no cases of COVID-19 have been reported at any of its operations in Mexico, Abitibi and Nunavut. However, one case has been reported at the company’s Kittila mine in Finland.
On March 28, the below-ground employee tested positive for COVID-19. Symptoms of the virus were originally reported on March 15, and Agnico Eagle says the worker was swiftly quarantined at home where they are recovering.
Following the diagnosis, the company suspended all of its underground operations at Kittila for a period of 72 hours while other workers were evaluated. Operations then resumed on March 31, with no material impact on any other processes.
In today’s announcement, the company stated that the pandemic is a rapidly evolving situation. Consequently, Agnico Eagle is continuing to assess its mining operations on an ongoing basis.
Agnico Eagle Mines (AEM) is currently up 4.31 per cent to C$61.71 per share at 1:26pm EST.
