The Mexican state of Durango is reportedly in talks with Mexican integrated steelmaker AHMSA to revert the shutdown of an iron ore mine in the city of Durango, in the state of same name.
AHMSA decided to shut down its Cerro de Mercado iron ore mine, following protests led by union leader Napoleon Gomez Urrutia. AHMSA said the protests led by Urrutia made the mine’s operations “too costly,” making it difficult for MINOSA, the AHMSA subsidiary that owns the mine, to afford it.
The mine employed 500 people and used to produce iron ore, which was processed and then sent by railroad to Monclova to supply AHMSA’s blast furnaces.
A media report noted conversations between the government of Durango and AHMSA did not advance, but will continue.
“We’re still negotiating, we’ll seek today an agreement between the company and the local union,” the governor of Durango, Jose Rosas Aispuro Torres told local media.
“We can’t believe it. They have a concession from the government of Durango, we’ve invested a lot at the Cerro de Mercado mine, which is an icon in the history of both the city and the state [of Durango],” he said.