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Newmont suspends operations at Peñasquito Mine in Mexico

Kitco News

Newmont (NYSE:NEM) announced today it has suspended operations at the company’s Peñasquito Mine in Mexico over a wage dispute.

Yesterday the National Union of Mine and Metal Workers of the Mexican Republic notified Newmont of strike action. In response Peñasquito operations were suspended by Newmont.

Newmont claims that the union is demanding an increase in the uncapped profit-sharing benefit negotiated through the collective bargaining agreement from 10 percent to 20 percent.

Peñasquito is the largest employer in Zacatecas, Mexico with a direct workforce of more than 5,000.

Peñasquitois the world's second largest silver mine, which had production of 29.7 Moz in 2022. Newmont’s Penasquito polymetallic mine consists of two open pits – Peñasco and Chile Colorado – containing gold, silver, lead and zinc. Penasquito employs flotation-and-grinding processing. Penasquito’s silver output declined by 5% y-o-y to 29.7 Moz in 2022.

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