Mexico grants Fresnillo explosives permit for gold mine

LONDON, Feb 26 (Reuters) - Mexico has granted precious metals miner Fresnillo FRES.L a new explosives permit, allowing it to resume operations at one of its gold mines, the company said on Wednesday.

A ban on the use of explosives imposed in October after a dispute with the local community had paralysed production at Fresnillo's Herradura mining unit of the Minera Penmont, and forced it to lower its 2013 gold output targets.

The world's largest primary silver producer now expects to resume operations at the mine next week.

Shares in the London-listed miner were little changed by 0830 GMT, after rising more than 2 percent in early trade.

(Reporting by Silvia Antonioli; editing by Mark Potter)

((silvia.antonioli@thomsonreuters.com)(+44)(0)(20 7542 1755)(Reuters Messaging: silvia.antonioli.reuters.com@reuters.net))

Keywords: FRESNILLO EXPLOSIVES/