Lundin Gold Sees Local Unrest Directed At Firm At Fruta del Norte Operation
Lundin Gold (TSX: LUG) is facing local community unrest near its Fruta del Norte gold mine in Los Encuentros, Ecuador. The unrest is related to a public bridge that has collapsed and fallen into the river below. While no injuries were reported, Lundin is being viewed as partially responsible due to inaction on its part, for which it is now facing direct civil unrest.
Responsibility for the bridge collapse has partially been aimed at Lundin as a result of commitments made by the company in 2018 to fund the construction of a new bridge. Funding was to come from Lundin in addition to certain local and national stakeholders.
While reconfirming its commitment to construct the new bridge following the collapse, locals view actions as being louder than words, and as such are not happy with the response from the gold miner. Lundin in its defense has stated that, “this construction was and remains the responsibility of the provincial government.”
In direct response to the collapse of the bridge, a group of local community members have established a road blockade on the public road leading to the Fruta del Norte mine. A variety of demands are being made, with Lundin not providing further color on the topic. The company as a result of the blockade however is unable to move personnel and goods, which includes concentrate, into and out of the Fruta del Norte mine. Operations are currently said to be uninterrupted and continuing on site, however it is unclear what, if any, impact will be felt by the company as a result of the impeded access to site.
Lundin Gold last traded at $11.80 on the TSX.
Information for this briefing was found via Sedar and Lundin Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
