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Released October 24, 2023 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Newmont Corporation (NYSE:NEM) (Greenwood Village, Colorado) is restarting the Peñasquito gold mine in Mexico following a workers' strike that started on June 7. Operations at the mine were shut down for more than four months while the union demanded better compensation.
The mining company announced an agreement with the workers union on October 16. As part of the deal, Newmont will pay its employees 60% of the wages lost since the start of the strike and an 8% wage increase as part of the new collective bargaining agreement. Additionally, the company will pay an extra bonus equivalent to two months of wages by the second quarter of next year if the mine reports no profit this year due to the stoppage.
"This unnecessary strike has caused significant hardship for all of our employees, contractors, host communities, suppliers, and customers," said Tom Palmer, Newmont's President and Chief Executive Officer. "We will continue to honor our commitments, comply with the law and the collective bargaining agreement, and work to protect the long-term value of Peñasquito."
The restart of operations will take several weeks to reach stable production. A new update on the mine will be announced during Newmont's third-quarter financial results conference call this month.
Peñasquito is Mexico's largest gold mine, though it also produces silver and zinc. The operations include an open pit mine and two processing facilities.
Last year, Peñasquito produced 566,000 ounces of gold and contributed US$1.9 billion in value to Mexico, including US$643 million in wages, taxes, and royalties. In the first six months of 2023, the mine produced 123,000 ounces of gold, compared to 258,000 ounces during the same time last year.
For 2023, the company reduced its production guidance to 330,000 to 370,000 ounces. The company said it would reassess Peñasquito's guidance, which could lead to a lower guidance amount.
Industrial Info is tracking three active capital projects at the Peñasquito mine, with a total investment value of US$34 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals project and plant databases can click here for the project reports and click here for the related plant profile.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
The mining company announced an agreement with the workers union on October 16. As part of the deal, Newmont will pay its employees 60% of the wages lost since the start of the strike and an 8% wage increase as part of the new collective bargaining agreement. Additionally, the company will pay an extra bonus equivalent to two months of wages by the second quarter of next year if the mine reports no profit this year due to the stoppage.
"This unnecessary strike has caused significant hardship for all of our employees, contractors, host communities, suppliers, and customers," said Tom Palmer, Newmont's President and Chief Executive Officer. "We will continue to honor our commitments, comply with the law and the collective bargaining agreement, and work to protect the long-term value of Peñasquito."
The restart of operations will take several weeks to reach stable production. A new update on the mine will be announced during Newmont's third-quarter financial results conference call this month.
Peñasquito is Mexico's largest gold mine, though it also produces silver and zinc. The operations include an open pit mine and two processing facilities.
Last year, Peñasquito produced 566,000 ounces of gold and contributed US$1.9 billion in value to Mexico, including US$643 million in wages, taxes, and royalties. In the first six months of 2023, the mine produced 123,000 ounces of gold, compared to 258,000 ounces during the same time last year.
For 2023, the company reduced its production guidance to 330,000 to 370,000 ounces. The company said it would reassess Peñasquito's guidance, which could lead to a lower guidance amount.
Industrial Info is tracking three active capital projects at the Peñasquito mine, with a total investment value of US$34 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals project and plant databases can click here for the project reports and click here for the related plant profile.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
