https://www.engineeringnews.co.za

Peñasquito ramp-up to take several weeks - Newmont

17th October 2023

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

Font size: - +

The four-month strike at Newmont’s Peñasquito mine, in Mexico, is officially over, but it will take several weeks for the mining operation to ramp up to stable production levels, the US-based gold major said on Monday.

The company stated that its priority was to safely return the workforce to Peñasquito and that it would provide a status update next week during its third-quarter earnings call.

“This unnecessary strike has caused significant hardship for all of our employees, contractors, host communities, suppliers and customers,” said president and CEO Tom Palmer. “We will continue to honour our commitments, comply with the law and the collective bargaining agreement, and work to protect the long-term value of Peñasquito.”

Newmont and the National Union of Mine, Metal and Allied Workers submitted their agreement to the Mexican Labour Court on October 13, officially ending the strike that started on June 7 over demands for additional profit sharing.

Newmont said that, in terms of the agreement reached with the union last week, the miner would not pay any additional incremental profit sharing for 2022.

Also, as a consequence of the strike, if the Peñasquito mine reports no profit in 2023, then Newmont will pay an additional bonus in the second quarter next year, equivalent to two months’ wages as the company recognises the hardship employees have experienced given the duration of the strike.

Newmont will also pay employees a fixed amount, roughly equivalent to 60% of wages lost, since the strike began on June 7. This payment is intended to mitigate the financial impact that the strike has had on the workforce.

In addition, as part of the separate, yearly, wage negotiations under the collective bargaining agreement, Newmont and the union have agreed to an 8% wage increase, in line with Mexican mining industry wage increases for 2023. These wage negotiations are not part of the union’s claims as grounds for taking the strike action.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Alcohol Breathalysers
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.054 0.917s - 140pq - 2rq
Subscribe Now