Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) has decided to shut down its Cerro de Mercado iron ore mine in the city of Durango.
The mine belongs to AHMSA’s subsidiary, Minera del Norte (MINOSA), and was shut down following protests led by union leader Napoleon Gomez Urrutia.
AHMSA said the protests led by Urrutia made the mine’s operations “too costly.” The mine employed 500 people and produced iron ore, which was processed and then sent by railroad to Monclova to supply AHMSA’s blast furnaces.
“Continuous labor problems caused by union leaders supporting Gomez Urrutia, who even blocked the company’s efforts to modernize the mine, contributed to a highly negative workplace, with the constant rupture of discipline, boycotts, damages to equipment as well as other inadmissible behaviors,” AHMSA said.
AHMSA announced on Monday it resumed operations at several coal plants as well as at its Hercules iron ore unit owned by MINOSA, following protests and blockades in recent weeks.