Unionized Workers Halt Operations at Mexico's Camino Rojo Gold Mine

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Operations at Orla's Camino Rojo gold mine have been halted by protesting workers over bonus payments since June 1. A meeting between the company, the union and federal labor authorities was scheduled for June 2. Camino Rojo produced 96,764 ounces of gold in 2025 and is one of the key projects in the Equinox acquisition of Orla mining.

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Work Stoppage

Orla Mining reported that unionized workers launched a work stoppage and blocked access to the Camino Rojo gold mine in Zacatecas, Mexico, temporarily halting operations at the mine on June 1.

Industrial Info Resources data find planned Orla Mining project totaling more than US$1.1 billion, including an addition at Camino Rojo. Orla has described the actions as illegal, stating "the work stoppage has not followed the procedures required under Mexican law, including the filing of a strike notice."

The work stoppage arose amid negotiations on workers' productivity bonus and a profit-sharing entitlement. Orla said it had already paid workers the maximum profit-sharing entitlement stipulated under Mexican law, while the company and union representatives negotiated the productivity bonus.

Sources told El Sol de Zacatecas that workers considered the payment of the profit-sharing bonus insufficient.

A meeting between the company, the union, and the department of labor was scheduled for June 2.

The company's shares dropped from C$18.50 (US$13.37) on Friday, May 29, to C$16.48 (US$11.91) on Tuesday, June 2.

Throughout 2025, Orla produced 96,764 ounces of gold from Camino Rojo, while in Q1 this year the asset had an output of 18,221 ounces.

In February, the company published its preliminary economic assessment of Camino Rojo's underground mine addition project with a forecasted average yearly production of 215,000 ounces over the first 10 years and initial capital costs of US$608 million.

Including Camino Rojo's underground development, Industrial Info Resources is tracking five Orla projects between Mexico and the United States amounting to investments of US$1.15 billion.

Equinox's Acquisition of Orla

In May, Equinox announced the acquisition of Orla Mining, creating a company with a production of 1.1 million ounces of gold and a market capitalization of US$18.5 billion. With the completion of its planned growth projects, the combined company could produce more than 1.9 million ounces annually.

Special meetings of Equinox and Orla shareholders are expected to take place in July, and the transaction is expected to close in Q3 this year.

Key Takeaways

• Orla's Camino Rojo gold mine operations halted by workers.
• Workers protest for better bonus payments.
• Restart of operations remains unknown.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).