Canadian Mining Journal

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Primero’s future uncertain after San Dimas strike actions



VANCOUVER — Primero Mining‘s (TSX: P) future hangs in the balance following 18 months of operational inefficiencies and labour-related work stoppages at its flagship San Dimas operation, 125 km northeast of Mazatlán, Mexico.

… Primero has been dealing with sociopolitical issues in Mexico since it was slapped with a legal claim from the Mexican tax authorities in early 2016.

The company then tangled with San Dimas’ local union in February, after employees initiated a strike action resulting in the “complete stoppage of mining and milling activities at the site.”

San Dimas was offline for around two months during negotiations and only resumed production in late April. Primero had hoped to smoothly navigate its restart plan, but union relations soured again in July when labour disruptions reignited over proposed bonus payments under a newly-minted collective bargaining agreement.

Continue reading at The Northern Miner.