Larco mining industry on brink of collapse

Larco mining industry on brink of collapse

The Larco General Mining and Metallurgical Company is one step from closure, after entering receivership status in March to be sold to a private investor or declare bankruptcy.

The problematic state company suffers losses of $8,000 per ton of nickel output, and with a daily output of 15 tons, the company is posting losses of $120,000 every day.

However, it has been paying some of its employees salaries normally associated with profit-making multinationals: There have been cases of workers who received handouts if they worked on their leave days, while one person collected handouts both as a director and as a supervisor.

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