Mandalay Resources says ops resume at Chile mine

Fri Mar 9, 2012 8:02am EST
 
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(Reuters) - Operations at Mandalay Resources' (MND.TO: Quote) Cerro Bayo project in Chile resumed after protestors removed blockades, allowing supplies in and out of the mine, and the Canadian miner said the disruption will not affect its annual production or outlook.

The protestors have begun negotiations with the local government, Mandalay said in a statement, adding that the fortnight-long disruption had minimal impact on production.

Last month, protestors in the Aysen Province of Chile closed the port and several roads reacting against the government's move to reduce fuel subsidies.

The company said it is going ahead with its ramp up plans for the project and working to return to normal production levels.

Shares of the company, which also has assets in Australia, closed at 85 Canadian cents on Thursday on the Toronto Stock Exchange.

(Reporting by Abhiram Nandakumar in Bangalore; Editing by Brenton Cordeiro)