Wednesday, May 27, 2020

Peñoles subsidiary mine suspends operations in Zacatecas, 500 employees laid off

Industrias Peñoles explained that the decision was due to the drop in the price of zinc, which was combined with the high cost of operating the Madero Mining Unit. ZACATECAS, Zac.- Industrias Peñoles announced that due to the abrupt drop in the price of zinc, the Madero Mining Unit, located 20 kilometers from the capital, will suspend operations. The company announced the liquidation of more than 500 people, not counting the staff of the contractor companies that worked in it. The company said in a statement that it has been declared temporarily suspended indefinitely after the mine ceased to be affordable due to the high cost of operation due to its low depth, coupled with the abrupt drop in the price of zinc.

The company reported that an agreement was reached with the National Metallurgical Mining Union to settle 440 unionized people “offering them their liquidation in accordance with the agreement signed with conditions superior to what is established by law.” Likewise, the vast majority of them were given the opportunity to join a plant position in the operating units of the Fresnillo company, a subsidiary of Peñoles. This would imply that the workers moved to said municipality. Likewise, the 105 non-union employees were offered a relocation option in other Peñoles operations. Meanwhile, the contractors who worked in the unit were opened with job options in other operations in both Peñoles and Fresnillo.

The mine remained in operation for 20 years. The temporary suspension of operations of the mine does not imply the total closure of the same since it must retain a minimum staff to attend to administrative matters. Juan de Dios Magallanes, professor at the Faculty of Mining of the Autonomous University of Zacatecas, explained that this implies maintaining the administrative operation before the instances related to mining. Among them are the Secretariats of Environment and Natural Resources; National Defense; Treasury and Public Credit, and Labor and Social Security. “Monthly, quarterly, semi-annual reports are made to about 20 instances,” he said.

Source: El Financiero

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