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Jaguar 'significantly' scales back Brazil ops as strike bites

TSX-listed gold producer Jaguar Mining (JAG) said late on Thursday it was “significantly” scaling back its underground mining activities at the Pilar and Turmalina gold mines, in Brazil, as an ongoing truck drivers’ strike is crippling the Brazil economy.
Jaguar 'significantly' scales back Brazil ops as strike bites Jaguar 'significantly' scales back Brazil ops as strike bites Jaguar 'significantly' scales back Brazil ops as strike bites Jaguar 'significantly' scales back Brazil ops as strike bites Jaguar 'significantly' scales back Brazil ops as strike bites

Jaguar Mining's Brazil operations have been hamstrung by a national truck drivers' strike

Henry Lazenby in Vancouver

Self-employed truck drivers walked off their jobs on May 21, demanding a decrease of the diesel price, exemption from certain tolls, as well as a legal and tax reform related to truck driving.

Truck drivers have taken to demonstrations on the country's roads, which have paralysed many critical roads and caused a shortage of food, medicines, and oil across Brazil, with long queues of vehicles to petrol stations. 

Jaguar advised it had experienced delayed fuel deliveries and other critical mining consumables needed to sustain normal course mining activities over the past several weeks. It said gold processing facilities would remain operational, while equipment maintenance and administrative oversight activities at both sites would continue.

The Toronto-based miner said it had enough cash in the bank to meet its obligations. It continues to monitor the status of the strike and will provide an update on the resumption of full production of the underground mining operations once availability and the supply chain for mining consumables returns to normal levels.

The company advised it wouldl assess the strike's impact on its production guidance when it had restarted operations.