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Oct 12, 2012 11:25PM
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On Oct. 4, ProDESC issued a press release on their website stating that protesters were blocking off the La Platosa mine for a second time in two weeks. The press release has since been removed from their website.
Some media outlets published a story based on the press release, but Excellon executive management said the NGO’s press release was erroneous.
“To say that there was a second blockade in two weeks is wrong, the first one was also a demonstration,” said Joanne Jobin, vice president of investor relations at Excellon. “There was no blockade whatsoever (on Oct. 4); we had 100% access to our mine.”
A ProDESC representative clarified that it was not a blockade during an interview with Kitco News.
“It was the community that has continued to maintain a demonstration camp outside the mine which is continual and right at the entrance of the mine on private property that is not property of Excellon’s,” said ProDESC representative Christopher Benoit.
The first blockade ProDESC referred to in its Oct. 4 press release occurred Sept. 26 at La Platosa, which involved members of the USW Union and members of the Ejido. Excellon said that both groups are advised by ProDESC. Excellon also said this was not a blockade, rather a demonstration.
The second demonstration took place Oct. 4, but was far from a blockade, said Brendan Cahill, executive vice president of Excellon.
“We got to the mine in the morning, the protesters were visited by AFL-CIO, a US umbrella labor organization, and in a demonstration of solidarity they claimed that they were not going to let any contractors or suppliers into the mine,” Cahill said. “We had no problem getting any of our workers in, the first shift was fine, the second shift was fine, there’s just no truth to say that there was a second blockade within two weeks.”
Benoit said that workers have been taking part in work stoppages.
“My understanding is that the community has conducted several work stoppages at this point after the two-month work stoppage that had occurred between July and the end of August,” Benoit said. “Since then they’ve been conducting six to eight hour work stoppages off and on over the last several weeks to get the company to sit down at the negotiation table.”
Excellon maintains that they have addressed the issues brought up by ProDESC and the Ejido, among the issues being an increase to the current land package deal.
“What is never raised is the fact that the Ejido, with the help of ProDESC, have demanded surface rent payments that would total about $1.5 million. We currently pay them almost $600,000 a year,” Cahill said. “Since 2008, we’ve paid them $2.7 million. It’s one of the richest surface rights for exploration rental agreements in Mexico.”
Cahill believes that the acrimony from the unions began after the July 1 Mexican presidential elections which saw a change in leadership.
Felipe Caldéron and his Partido Accion Nacional lost his six-year position as president of Mexico to Enrique Peña Nieto’s Institutional Revolutionary Party. Peña Nieto will assume control as Mexico’s acting president on Dec. 1.
This five-month lull between Caldéron’s stepping down and Peña Nieto’s stepping in is seen as a small open window for unions to try and muscle in on mines, according to Cahill.
“I think everybody had a sense it was coming, there’s always this lag before the new government takes over,” said Cahill.
Excellon executive management said they followed the rules when it came to allowing the USW union the opportunity to become the mine’s major workers union by putting it to a vote. Roughly 60% of Excellon workers did not select the USW union to represent them.
From there, Excellon alleges that ProDESC is using the Ejido as a means to continue causing strife and unrest at La Platosa.
Excellon has been targeted in media releases by the USW Union as well with a Sept. 27 press release aimed at the company’s shareholders. The press release began with “just like poor landowners and miners in Mexico, Canadian shareholders deserve much better from mining company Excellon Resources.”
Ken Neumann, USW National Director for Canada, said in the release that, “we are communicating directly with Excellon shareholders to document a litany of management problems that have led to festering conflicts in Mexico and a depressed share price for shareholders.” The release said Neumann sent a letter to major shareholders.
Cahill believes that the window for ProDESC and the unions to cause problems is closing.
“We’ve spoken with absolutely every single level of Mexican government and they all know it’s an issue, they know the source of the issue,” Cahill said. “Mexico will hopefully be undergoing some positive changes in the next two to three months and when the new government gets into power, everyone expects things to improve significantly.”
“The union leaders know this is the last hurrah and they’ve got a window that’s closing quickly,” Cahill added.