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Sierra Metals suspends Yauricocha silver mine operations due to illegal strike

Sierra Metals Inc. suspended all mining and milling operations at its Yauricocha silver mine in Peru on March 19 after a majority of the workers started a strike.

Members of the Union of the Mine and Metallurgical Workers of Minera Corona, which represent about 66% of mine employees, initiated a strike in protest of contractor changes being made as part of regular operations.

The Peruvian Ministry of Labour deemed the strike illegal under current legislation, according to a March 21 release.

President and CEO Igor Gonzales said the strike will not materially affect the company's annual production guidance or mine budget.

In mid-February, Peru's National Environmental Certification Service approved the environmental impact assessment study for expanding the tailings deposition facility at the Yauricocha mine.