Jaguar Mining to pay significantly reduced fine for tailings incident

Jaguar Mining (TSX: JAG) says it has negotiated a significantly reduced environmental fine with Brazil’s Minas Gerais state government related to a tailings rupture that occurred at the company’s MTL mine complex in late 2024.The penalty stems from an infraction notice issued by the State Secretariat for the Environment and Sustainable Development (SEMAD) following a partial rupture in the Satinoco tailings pile at the company’s Turmalina gold mine, part of the MTL complex located 130 km northwest of Belo Horizonte.The incident, which occurred in early December, displaced hundreds of local residents and affected multiple structures in the surrounding area. Jaguar was forced to suspend mine operations immediately and received a fine of 320 million reais ($52.5 million) in January.In a press release Monday, the company announced it has reached an agreement with SEMAD to pay a much lower fine of approximately 60 million reais ($10.8 million).Jaguar Mining traded 2.4% higher at C$3.78 as of 11:30 a.m. ET on the news, for a market capitalization of C$299.8 million ($219.3 million). The company has now recovered its losses from the tailings incident, which took its stock to as low as C$1.97 apiece.Landmark settlementThis landmark settlement underscores Jaguar Mining’s proactive engagement and unwavering commitment to responsible corporate conduct, strengthening its financial position and providing clarity for future operations, it said in a statement.The payment, it added, is structured with terms aimed at “supporting the company’s financial liquidity and operational continuity, while providing fair compensation for the recognized damages caused by the incident.” Nearly half of the fine (about 24.5 million reais) will go to specific socio-environmental projects within the state of Minas Gerais. The balance can be paid in monthly instalments, with grace periods.This agreement is an important milestone reached in our robust plan to resume operations in MTL … and is a clear testament to the company´s effort to address the Satinoco incident comprehensively and responsibly,” stated Albano Tondo, the newly appointed deputy CEO of Jaguar Mining.As disclosed earlier this month, the company has a “structured and comprehensive plan” to support the restart of operations at the MTL complex. This includes technical studies and construction adjustments to ensure the geotechnical safety factors at Satinoco meet or exceed industry standards.Last year, the MTL complex, which contains the Turmalina mine and processing plant as well as three satellite deposits, produced 23,710 oz. of gold, representing more than a third of Jaguar’s total output. The company also operates the Caeté complex, which hosts the Pilar gold mine.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com