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For the past ten days Inc. (TSE:G)(NYSE:GG) has had to shut down operations at its Penasquito gold mine in Mexico’s Zacatecas province due to a work stoppage and general blockade.
The closure has affected the construction of a hydraulic distribution plant and an electric substation for the property according to the daily ‘La Jornada’.
Landowners from the community of Matamoros in the municipality of Melchor Ocampo are angry with the Canadian transnational gold company for refusing to pay for the rights to transfer water to the Penasquito mine complex located in the municipality of Mazapil adjacent to Melchor Ocampo as well as for failing to offer a better price for the purchase of land.
bought the Matamoros property of about a hectare to build a power substation and a pump unit for driving piped water drawn from 25 wells to use in the mining process.
Felipe Pinedo Hernandez leader of the National Coordination Plan (CNPA) in Zacatecas an organization that supports the peasants said the problem is that refuses to "renegotiate" what he called "a predatory and disadvantageous contract" for the landowners of Matamoros.
According to the protesters negotiated a price of 3.5 million pesos (about US$230000) for the property. Now the 148 farmers have demanded US$1.5 million. They also demand that fulfill a list of demands including scholarships employment housing and transportation infrastructure.
But has not budged refusing to pay more and adding to tensions by starting to dismiss workers in the mine’s cafeteria while sending home Penasquito’s engineers living in housing rented by the company.
The standoff is destined to last longer than expected as neither side has acquiesced and without dialogue there can be no solution. There is an increased police presence but the protest is unusual because the protesters are safe in their homes – this also allows them to endure longer.
is Canada’s largest gold miner by market value and one of the world's fastest growing gold producers concentrating its activity in the Americas. Shares of were trading 1.63 percent lower at C$22.32 in Toronto this afternoon.
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