Excellon Resources Inc. (TSX: T.EXN, Stock Forum) is under pressure from landowners and workers who live in the vicinity of its Mexico mine after they filed a complaint against the company, alleging that their rights are being violated.
Stockhouse has obtained a copy of the complaint which has been filed under the Organization for Economic Co-operation and Development (OECD) guidelines for multinational corporations with government offices in Ottawa and Mexico City.
It raises concerns about the company’s La Platosa mine in Durango, about 45 kilometres outside the city of Torreon, alleging that the company continues to violate OECD guidelines by allegedly failing to honour local land rental contracts, and failing to negotiate a collective agreement with 120 miners.
La Platosa is described on Excellon’s website as one of the highest grade, producing silver, lead and zinc deposits in Mexico.
Jennifer Moore, a Latin American Program co-ordinator with MiningWatch Canada, said a key concern is the company’s alleged failure to build a water treatment plant to allow for water removed from the mine to be used for agriculture in the area.
Company officials could not be reached for comment yesterday.
In a bid to reinforce their concerns representatives of the local landowners attended the company’s annual meeting in Toronto, Thursday, a meeting that was held in a law office in the city’s Bay Street financial district.
According to statements posted on the MiningWatch Canada website, there is no opposition to the mine itself. “What we want is that Excellon acknowledge its (alleged) misconduct, negotiate with us as equals, and resolve these issues,’’ said Daniel Pacheco a local resident and former President of the General Assembly of Ejido (an area designated under Mexican law as a communally-owned land structure).
The hope is that Excellon President and Chief Executive Officer Jeremy Wyeth and company directors will be prepared to travel to Mexico and participate in negotiations to end the dispute. However, sources who attended the company’s annual meeting Thursday, say it is unclear that Wyeth is prepared to comply with this request.
The mine workers formed a local of the National Mining Union following the death of Jose Paulin Contreras Romero in February 2009. He was killed when he was hit by a rock fall inside the mine.
MiningWatch Canada says the miners are paid an average of about 1,000 Pesos per week, which works out to be about $72.
Trading at 53 cents on Thursday, Excellon has a market cap of $147.7 million, based on 278.7 million shares outstanding. The 52-week range is 85 cents and 46.5 cents.