PRECIOUS METALS

"Underground mining was proactively paused [at Red Lake]"

Newmont Goldcorp expects partial underground operations to resume tomorrow

Staff reporter

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Newmont Goldcorp (NYSE: NEM) said on Sunday it had "proactively paused" underground mining on July 3, to allow for installing extra controls to further protect workers, in case water entered the mine through an historic stope at the Cochenour complex.

It said it decided to strengthen controls after an in-depth review of the historic stope.

It noted there were no known changes to conditions at the mine.

The company said processing and surface operations were uninterrupted and underground workers had been temporarily reassigned to other jobs on site.

"Partial underground operations at the company's Red Lake mine in Ontario, Canada will safely resume by Tuesday, July 9," Newmont said.

The former Goldcorp asset became part of the enlarged Newmont portfolio after the two companies merged earlier this year.

There have been issues at other former Goldcorp assets, with Newmont suspending the Peñasquito mine in Mexico in April due to an "illegal blockade" which it said was lifted in mid-June and operations were safely ramping up.  

An underground fire impacted operations at Goldcorp's Musselwhite mine in Ontario earlier this year and in an earnings call in April, Newmont president and COO Tom Palmer said "recent events have created headwinds to achieving Goldcorp's previously forecasted production levels".

Newmont Goldcorp will release its second quarter results on July 25 before market open.
 
Its shares closed down 0.88% in New York on Friday but remain near a one-year high.

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