Hochschild Mining said Wednesday it would suspend operations at its Arcata precious metal mine, in south west Peru, and place it on care and maintenance amid continuing low silver prices and adverse geological conditions.
The company forecasts that full care and maintenance would be in effect by the second quarter of 2019.
'This decision has been expected but is still disappointing for the organisation,' said Ignacio Bustamante, Chief Executive Officer.
'Arcata was the Company's first mining operation and started producing in 1964. It has been an excellent operation with an outstanding workforce and supportive communities but the continuing low silver price over some years and current geological conditions leaves us no option.'
'We have recently been making the necessary preparations and will work closely with our employees and key contractors to mitigate the impact and manage carefully the staged shutdown of operations whilst maintaining our community programmes.'
At 8:01am: (LON:HOC) Hochschild Mining PLC share price was -2.15p at 188.25p