Brazilian authorities shut Jaguar mine after tailings slide

Local labour officials shut Jaguar Mining‘s (TSX: JAG) Turmalina gold mine in Brazil due to safety risks stemming from a recent tailings pile collapse.

The mine—part of Jaguar’s MTL complex in Minas Gerais state 130 km northwest of Belo Horizonte—was deemed an “unfeasible work environment” following inspections by labour auditors overseen by the Regional Superintendent of Labour. 

The suspension comes after a partial rupture in the tailings pile on Dec. 7 that displaced 255 residents and affected multiple structures in the surrounding area. There’s still significant risk of further collapses within the tailings structure, prompting immediate action to safeguard workers and nearby communities, Brazil’s Ministry of Labour said.

News of the suspension caused Jaguar Mining’s stock to fall 2.8% on Tuesday afternoon to $2.44 apiece in Toronto. The company’s market capitalization stands at $193.7 million. They’ve traded in a 52-week range of $1.43. to $5.92. 

Stabilization efforts

The company said that no workers have been at the site since the incident, in compliance with a prior directive from the National Mining Agency.

Stabilization efforts are using best practices to ensure the health and safety of workers, Jaguar Mining told newspaper Estado de Minas.

In 2022, the underground Turmalina mine produced 33,117 oz. of gold, accounting for nearly half of the company’s total output. The broader MTL complex includes a 2,000-tonne-per-day processing plant and three satellite deposits—Faina, Pontal, and Zona Basal—alongside the Onças de Pitangui project.