Mexican govt orders Torex to suspend ops at Morelos complex after 3 workers die

Mexico's director general of mines at the economy ministry has ordered Toronto-based miner Torex Gold Resources to suspend all activities at its Morelos complex temporarily for an inspection after an accident killed three workers at the El Limón Guajes (ELG) underground mine.

“As a result, all operational and project activities within the Morelos Complex have been temporarily halted pending permission from officials to resume activities,” the Canadian company said in a statement.

Torex reported that during the day shift on December 5, two employees and a contractor were fatally exposed carbon monoxide gas at the facility.

“Officials from the Mining Unit are expected to arrive to our operations on Tuesday and they will receive our full cooperation. We will work with officials to expedite all information they require to allow for the re-start of operational and project activities,” said Jody Kuzenko, president and CEO of Torex.

The suspension order comes after Mexican President Claudia Sheinbaum criticized the behavior of Canadian mining companies in the country in response to the fatal accident at ELG.

"I asked Marath [Bolaños], the labor minister, to increase inspections and to make thorough review because... it cannot be that some standards are applied here by Canadian companies and others are applied in Canada," the president said at her morning conference on Friday.

The Morelos complex, Torex's principal asset, includes the ELG mine complex, the Media Luna project, a processing plant and related infrastructure

Torex's full-year 2024 production guidance and schedule for the US$950mn Media Luna project remain unchanged, the company said.

In a statement issued on Monday, Kuzenko said that while a full investigation into the fatal incident is just beginning, the early indications are that the exposure was an isolated accident in an area of the mine that was being prepared for ventilation following a stope blast.

“Two experienced individuals went into a restricted area where carbon monoxide was present, and in an effort to rescue their colleagues who suffered exposure, two other individuals entered the area as well. Three of the individuals passed away as a result, while the fourth was transported to a local hospital and is now at home recovering,” the CEO said.