Land Deals Unlock Los Filos
Equinox Gold Secures 20-Year Land Access, Enabling Phased Los Filos Mine Restart
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Key Points
1
In Mexico, the ejido land tenure system creates surface-access sovereignty that federal mining rights cannot override, meaning social and local access remains a gatekeeper for restarting Los Filos.
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Restarting Los Filos' heap-leach operations is capital-intensive and technically complex, requiring recommissioning of lined pads and careful management of cyanide solution as part of the restart process.
3
Insider activity at Equinox Gold shows three insider buying transactions over the past three months totaling 11,922 shares, indicating insider confidence in the Los Filos restart.
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Los Filos is reported to contain 5.4 million ounces of reserves, 7.9 million ounces of measured and indicated resources, and 3.2 million ounces of inferred resources, underscoring substantial growth potential for a future restart.
Equinox Gold has signed 20-year land access deals with all three communities surrounding its Los Filos mine in Guerrero, Mexico, ending a suspension that began April 1, 2025. The agreements cover the Carrizalillo, Mezcala, and Xochipala communities and clear the biggest legal hurdle for restarting one of Mexico's largest gold mines, according to Mining Weekly.
CEO Darren Hall called the deals a "shared commitment to responsible operations and sustainable benefits over time." Los Filos holds 5.4 million ounces of gold reserves, but Equinox is keeping it out of its 2026 production guidance of 700,000 to 800,000 ounces while it works through a phased restart, TipRanks reported.
Why Mexico's Ejido System Held Los Filos Hostage
In Mexico, communal land groups called ejidos control surface land even when a company holds federal mining rights below ground. Without ejido approval, there are no roads, no waste pads, and no heap-leach operations. When the Carrizalillo community's access agreement expired on April 1, 2025 without renewal, Equinox had no choice but to shut the entire mine down, according to Discovery Alert.
The history here is messy. Investigators found that roughly 70% of clauses in a 2019 social agreement were allegedly never fulfilled by Equinox. That failure eroded community trust and triggered repeated blockades in 2020, 2021, and 2022. The new 20-year framework is designed to fix that by locking in labor hiring rules and local supply contracts from the start, Discovery Alert reported.
Restarting the Mine Is Far Harder Than Signing a Deal
Getting Los Filos back online is a major technical undertaking. The heap-leach pads — where crushed ore is stacked and sprayed with cyanide solution to extract gold — have sat idle for over a year. Workers must clean the site, recommission lined pads safely, and manage stored cyanide solution before any gold flows again. Equinox must also get fresh environmental permits from Mexico's federal regulator, SEMARNAT, according to GuruFocus.
The workforce was largely disbanded when operations stopped. Rehiring and retraining hundreds of workers takes time. Equinox expects to restore about 800 direct jobs in Guerrero, one of Mexico's poorest states, and unlock roughly $340 million in previously frozen investment, according to MarketWatch.
A 5.4-Million-Ounce Asset With Room to Grow
Los Filos is no small operation. Beyond its 5.4 million ounces of proven and probable reserves, the mine holds 7.9 million ounces of measured and indicated resources and another 3.2 million ounces of inferred resources, TipRanks reported. Those numbers make the restart financially compelling despite all the complexity.
Equinox is also studying a carbon-in-leach, or CIL, processing plant for Los Filos. An earlier feasibility study suggested a 10,000-tonne-per-day CIL plant could push production to 280,000 ounces per year and extend mine life to 14.5 years. The company now hints at a larger throughput. Meanwhile, three Equinox insiders bought a combined 11,922 shares in the three months before the announcement, a sign of internal confidence, according to TipRanks.
Community Critics Warn the Real Test Starts Now
Not everyone sees the 20-year deal as a clean fix. Activists at the Mexican Network of People Affected by Mining point to cyanide heap-leach pads sitting 500 meters from a community health clinic. They describe the mine's legacy as "unpunished destruction" and warn that past agreements meant little once operations resumed and local promises went unmet, according to Discovery Alert.
Equinox's own timeline shows the pattern. Blockades hit in 2020, 2021, and 2022 — each one tied to unfulfilled contract commitments. The Guerrero state government had to step in as mediator during the 2025 shutdown to prevent permanent job losses. Hall acknowledged the stakes, saying the new agreements foster "an environment that supports future investment" — but analysts note that every major blockade started the same way: with a broken local promise, Mining Weekly reported.
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