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(Alliance News) - Fresnillo PLC on Wednesday said its 44%-owned Juanicipio silver project continues to face delays due to pandemic related difficulties.
The remaining 56% of the project is owned by Canada-based development and exploration firm MAG Silver Corp.
The Mexican state-owned electricity utility, Comision Federal de Electricidad told the FTSE 100 precious metals miner that approval to complete the tie-in to the national power grid cannot yet be granted, meaning that the mill commissioning timeline will need to be extended by six months.
"This is directly related to knock-on effects of the pandemic on the CFE's operations, predominantly related to a lack of CFE staff which limits its ability to oversee three key tasks to: review the existing installation; supervise physical connection to the active power grid; and approve required blackout prevention devices," Fresnillo stated.
The miner said it will "do all that it can to expedite these necessary approvals".
Full load commissioning activities are now expected to be approved sometime after the first week of May 2022.
The company still notes that this estimate is subject to potential Covid-19 related realities.
Fresnillo Chief Executive Octavio Alvidrez said: "As an industry, we continue to manage the ongoing impact of the pandemic and while frustrating for all concerned, we recognize this situation is beyond the control of all parties."
Shares were up 0.3% at 895.52 pence each on Wednesday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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