Jaguar Mining (TSX: JAG) indicated this morning that operations remain halted at its Turmalina Mine, part of the MTL Complex in Brazil, following a landslide experienced by its dry-stack tailings pile on December 9.
The company stated that operations remain “temporarily suspended,” as it continues to work with authorities on dealing with the incident. A total of seven houses were impacted by the slide, while 85 families from the nearby community remain relocated under temporary accommodations. No injuries were reported in connection with the slide, and waterways are said to not be impacted.
Following the event, a 400-metre long containment barrier has been constructed out of waste rock from the mine in an effort to contain future movement. Next steps are said to consist of removing the material that slide off the tailings pile, as well as the process of removing material from the remaining pile to ensure long-term stability of the tailings stack.
WATCH: Jaguar Mining: Disaster In Brazil
While jaguar has said that infrastructure at the mine itself is reparable, the timing and cost of resuming operations is currently being assessed, with any resumption to be based on ensuring the future stability and safety of the area. In the interim, the complex has moved towards care and maintenance, with expenses now reduced at the complex and plans underway to relocated personnel to the nearby operating Pilar mine, as well as the Santa Isabel mine where is a test mining project is planned.
Finally, the company indicated that while no fines or lawsuits have occurred as of yet, historical precedent suggests that fines will be levied against the company. Jaguar anticipates that any fines levied will be paid in installments over a period of time, rather than all at once in a lump sum payment.
“We were entering 2025 with plans for significant growth. While these growth plans will now be delayed, we expect to fully recover and be back on track for significant growth looking ahead to the next five years. At the Pilar mine, we are confident we can expand additional development and diamond drilling capacity as we reallocate resources and equipment from the Turmalina mine. Pilar is a lower-cost operation and therefore, we aim to produce more profitable ounces to offset overall lower production levels in 2025,” commented Vern Baker, CEO of Jaguar.
Jaguar Mining last traded at $2.19 on the TSX.
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