MEXICO CITY (Reuters) -Mexico’s government said on Tuesday a mine run by Canadian firm Americas Gold and Silver Corp in Cosala 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.

The mine produces silver, lead and zinc, according to the company’s website.

The firm, which says it has been subject to extortion and organized crime and that the San Rafael mine in Cosala has been the target of an illegal blockade for over a year, said it welcomed Mexico’s commitment to reopening the mine.

“The company … remains committed to the community of Cosala, the company’s workers and their families, and stands ready to bring the workers back to work as soon as possible once the illegal blockade is removed,” it said in a statement.

Americas Gold and Silver said it looked forward to re-gaining control of the mine, inspecting the facilities and recalling all of the workers within a month of possession.

“Ultimately, the company must continue to rely on the authorities in Mexico to ensure this occurs according to desired timing,” the company added.

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 GrahamAdditional reporting by Jeff Lewis in Toronto and Sharay Angulo in Mexico City; Editing by David Gregorio and Lisa Shumaker)

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