Newmont mining company reached a deal with the workers' union at its Peñasquito gold mine in Mexico, putting an end to a four-month-long labor strike that, as was reported earlier, cost the company $3.7 million a day.
According to the statements of the parties cited by Reuters, they agreed to an 8% salary increase for workers, a figure below the 10% to 20% hike proposed by the union initially. Meanwhile, employee profit sharing this year will stand unchanged at 10%.
In a brief statement, Newmont confirmed that a "preliminary" deal was reached and said it hoped it would be approved in a federal labor tribunal so that activities at the mine could restart, without providing further details.
Peñasquito, a gold mine in the center-north region of Mexico, is a major supplier of gold, silver, zinc and lead. On June 7, some 2,000 members of the union of mining, metallurgical and steelworkers voted to go on strike after claiming the company had not complied with the collective bargaining agreement and PTU payments, and demanded an increase in the profit-share payments from 10% to 20%.
Earlier it was reported that the action cost Newmont $1 million a day in maintenance costs and $2.7 million a day in lost revenue. The financial impact of the strike will likely lead to mine not turning a profit this year, the company said earlier. During the second quarter of 2023 when the strike began, Peñasquito incurred $23 million of operating costs and $15 million of depreciation and amortization due to the suspension of operations.
Peñasquito produced 566,000 ounces of gold and 29.7 million ounces of silver last year.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
