/Silver Production Halted at Mexico’s San Dimas Mine
Silver Production Halted at Mexico’s San Dimas Mine
By Vince Lanci
on
Strike Halts Gold and Silver Extraction at Mexico’s San Dimas Mine
GFN – DURANGO: Gold and silver extraction at First Majestic’s San Dimas mine has been halted by a labour dispute that began September 18 and became a formal strike October 8. The dispute remained unresolved as of October 19.
La Jornada reported October 8, translated from Spanish:
“Since the stoppage began, gold and silver extraction has remained halted at the mine, owned by First Majestic.”
AI-generated editorial illustration of the San Dimas shutdown.
An October 18 POSTA report, citing Durango Economic Development Secretary Fernando Rosas Palafox, confirmed negotiations had yet to produce a settlement.
First Majestic’s October 8 production release showed San Dimas produced 859,869 silver ounces in Q3, down 41% year over year. Gold output fell 26% to 10,386 ounces. The company reported 12 days of operational disruption and attributed lower production primarily to reduced grades as the dispute slowed fresh-ore throughput. These quarterly figures include production before the stoppage.
Workers cited safety deficiencies, collective-contract violations and an unpaid productivity bonus. First Majestic disputed that safety triggered the stoppage, identifying disagreement over income tax on the bonus as the principal issue.
CEO Keith Neumeyer said in the release:
“our team is working diligently to resolve the situation and return to normal operations as quickly as possible.”
The release provided no restart date.
About the Author
Vincent Lanci is a commodity trader, Professor of MBA Finance (adj.) , and publisher of theGoldFixnewsletter.
