Grupo México: Cananea back to normal in 3 mths - Mexico
Published: Monday, January 14, 2008 14:47 (GMT -0400)
bnamericas.com
Mexican miner Grupo México's (BMV: GMEXICOB) expects its Cananea copper mine in Sonora state to be producing at normal rates in about three months after a strike paralyzed operations for nearly five months, Grupo México international relations VP Juan Rebolledo told BNamericas.
"It will take 7-10 weeks to rehabilitate the installations. It's going to take time and a return to production will be gradual," Rebolledo said.
"Although not all the workers in each shift have come back, there are enough people to carry out the work that needs to be done now, mainly inspection work," Rebolledo said.
On Friday (Jan 11) the country's labor ministry through its federal arbitration and reconciliation council declared the strike, which began July 30, illegal and asked workers to be back at their posts within 24 hours.
The strike, staged by national mining-metalworkers union STMMRM, was related to collective contract issues and mine safety and hygiene. It also shut down Grupo México's San Martín zinc and Taxco silver-lead-zinc mines.
The strikes at San Martín and Taxco were not included in the council's decision, but a ruling is expected by the end of the month, Rebolledo said.
At Cananea, groups of union workers are checking and cleaning some of the equipment and industrial installations.
"Independent experts will supervise mine security and hygiene conditions starting Monday," a company statement said.
Dupont and Safety Solutions International have been hired to carry out an independent inspection. Their report is due in about two weeks and will make recommendations to help the company become fully compliant with mine hygiene and security standards, Rebolledo said.
A summary of the report will be made available to the public shortly after it is produced and the full report published some time thereafter, Rebolledo said.
Grupo México said it will pay employees who arrive for work at Cananea their salaries, as well as production bonuses.
Due to the prolonged strikes Grupo México postponed plans last year to invest US$1.14bn to increase copper production at Cananea from 186,000t/y to 442,000t/y.
By Anthony Esposito
Business News Americas |
