Threats to Lay Off 600 Workers at Carrizalillo Mine by Equinox Gold Amid Demands for Fair Land Lease Payments
By desdeabajo Staff
January 22, 2025
Chilpancingo de los Bravo, Gro.
Over 600 unionized workers are at risk of losing their jobs due to Equinox Gold’s threat to shut down the Carrizalillo mine after failing to reach an agreement on the extension of its annual contract. The company is reportedly trying to lower production costs at the expense of the community’s interests.
At a press conference, Jos Luis Rodrguez, commissioner of Carrizalillo, representing the communities of Xochipala and Mezcala in Eduardo Neri municipality, accused Equinox Gold of attempting to impose an exploitative contract. “They’re only offering 35% of the payment stipulated in the agreement signed over 15 years ago, citing the ‘high cost’ of introducing modern gold extraction methods,” Rodrguez said.
He explained that Equinox Gold requested that the three communities work together to conduct a study and determine a fair payment for land exploitation. “We want a fair, consolidated price. In the end, we agreed as three communities to demand 4% of production, but they remain obstinate, offering only 2%,” he added.
Carrizalillo, a community of approximately 3,600 residents and over 200 ejidatarios, currently produces 200,000 ounces of gold annually at the Equinox Gold mine.
Rodrguez stated that, despite the communities’ willingness to unite and negotiate collectively to avoid job losses, the mining company has continued with its mass layoffs, framing it as a tactic to pressure the ejidatarios into accepting its terms.
Key Issues
1. Environmental Contamination and Irreversible Damage:
Open-pit mining by Equinox Gold has rendered lands infertile and water supplies contaminated with arsenic, posing severe health risks, especially to children.
2. Economic Exploitation:
Despite generating over $13 billion in revenues over 15 years and an initial investment of $700 million, the company now seeks to reduce payments to the communities, claiming financial struggles.
3. Mass Layoffs:
Equinox Gold has already announced plans to lay off 83% of its workforce, retaining only 17% to operate the mine, as part of its pressure tactics.
4. Carrizalillo Mine’s Productivity:
As one of Equinox Gold’s most productive mines, it contributes 45% of the company’s global production, with reserves of 3.7 million ounces of recoverable gold and 500,000 ounces currently ready for processing. The ejidatarios argue that the mine remains highly profitable and that the company’s cost-cutting measures do not justify reduced payments.
Community and Government Demands
The ejidatarios made the following demands:
• Fair Payments: They insist on receiving 4% of the mine’s production instead of the 2% offered by Equinox Gold.
• Respectful Negotiations: They call for an end to intimidation tactics and layoffs.
• Environmental Accountability: They urge Equinox Gold to rehabilitate the damaged land and address water contamination.
• Government Intervention: They appealed to President Claudia Sheinbaum Pardo and Governor Evelyn Salgado Pineda to mediate and implement measures to protect their rights and livelihoods.
The ejidatarios remain firm in their stance, emphasizing that the Carrizalillo mine, as Equinox Gold’s second-most productive site globally, remains a highly lucrative operation, contrary to the company’s claims.