Newmont Peñasquito signs new agreement with Mexican union

US miner Newmont, its Mexican subsidiary Newmont Peñasquito and the national union of mining, metallurgical, steel and similar workers of Mexico, have agreed on a new collective bargaining agreement (CBA) for 2024-26.

The deal was reached “reflecting the mutual commitment of all parties” and it “safeguards the rights of all workers and provides a solid foundation for continuing operations that secures a sustainable future for Peñasquito,” Newmont said in a statement.

The new agreement “is the outcome of a collaborative process characterized by open dialogue and a shared focus on the safety and well-being of our workforce,” Newmont Peñasquito said.

The deal includes a 7.5% direct salary hike and a 5.89% increase in benefits, which include a savings fund, attendance bonus, productivity bonus, life insurance, vacations, and other bonuses and benefits, the union said later.

Operations at Newmont's Peñasquito gold and silver mine in Zacatecas state were halted from June to October last year due to a labor conflict. The suspension of work at the mine was one of the major factors weakening Mexico's mining output for 2023, leading it to fall 2%, according to statistics agency Inegi’s official data. 

The strike at the mine cost the company an estimated US$3.7mn per day, Newmont claimed. 

As a consequence of the stoppage, the El Limón-Guajes (ELG) mining unit of Canadian firm Torex Gold Resources overtook Peñasquito mine as Mexico's biggest gold producer last year.

According to the 2023 annual report from Mexican mining chamber Camimex, ELG, located in Guerrero state, produced 453,800oz of the yellow metal, down 4.3% from 2022.

Peñasquito slipped to fifth in the ranking of Mexican gold mines last year, with output reaching 143,000oz, plummeting almost 75% versus the 566,000oz it churned out in 2022.

Peñasquito produces gold, silver, lead and zinc. It employs nearly 5,000 people directly and 28,000 indirectly.