By Ian Walker
LONDON–Fresnillo PLC (FRES.LN) said Wednesday the Mexican Ministry of Defense has granted a new explosives permit for the Herradura mining unit at Minera Penmont and the company expects to resume normal operations next week.
The Mexican gold and silver miner said that Penmont will place the explosives orders “without delay” and it expects to begin operations next week at Herradura, where drill holes are already available in preparation for blasting.
“The Company looks forward to resuming normal operations at Herradura as soon as possible and confirms its guidance for gold production as announced in its recent production report of 450,000 attributable ounces,” the FTSE 100 London-listed company said.
The Ejido El Bajio agrarian community previously obtained a temporary stay order that prevented the lifting of suspension of Fresnillo’s explosives permit covering the Dipolos, Herradura and Soledad pits. The company said in November the court was reviewing the case and at that time confirmed that the stay order requested by the Ejido would only apply within the boundaries of the Ejido and not outside of the Ejido, where Herradura and Soledad are located.
Fresnillo shares in London at 0805 GMT were up 23 pence, or 2.43%, at 991 pence in a lower FTSE 100 Index–down 0.009%.
Write to Ian Walker at [email protected]
