Mexico says Canadian mine in Sinaloa on track to reopen

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MEXICO CITY, June 15 (Reuters) - Mexico's government said on Tuesday a mine run by Canadian firm Americas Gold and Silver Corp in the northern state of Sinaloa is on track to reopen after a longstanding labor dispute.

"I've been informed of a decision taken to reopen the mine in Cosala, Sinaloa. A deal is being reached, it's moving forward," President Andres Manuel Lopez Obrador told reporters during a regular government news conference.

Still, the firm, which this year said it had been subject to "extortion and organized crime" and described the mine in Cosala as the target of an illegal blockade, did not immediately reply to a request for comment on his announcement.

In his brief remarks, Lopez Obrador did not mention the company by name, but two other officials in Mexico confirmed it was the Americas Gold and Silver operation in Sinaloa.

On Monday, the Mexican government said health and safety inspections would be carried out at the mine within the next three weeks, and that efforts by officials, the company and workers to allow the site to reopen were continuing. (Writing by Dave Graham Additional reporting by Jeff Lewis in Toronto and Sharay Angulo in Mexico City; Editing by David Gregorio)