Newmont Corp. has suspended operations at the Peñasquito mine in Mexico in response to a strike action received from the National Union of Mine and Metal Workers of the Mexican Republic. The company said that operations at Minera Peñasquito were suspended in a safe and orderly manner and essential activities related to safety, security and environmental monitoring and protection continue. A timeline for resuming operations was not provided.

Newmont said it had urged the union to abide by the mutually agreed collective bargaining agreement (CBA) negotiated and signed by both parties in June of 2022. On June 7, 2023, however, the union notified the company of a strike action demanding an increase in the uncapped profit-sharing benefit provided for in the CBA from 10% to 20%.

Prior to the strike action, the company said it attempted, in good faith, to resolve disputes regarding the provisions in the CBA, which expires in June 2024.  It said in a statement that it remains willing to participate in conciliation meetings to reach a resolution in accordance with the CBA, and will continue to adhere to legal procedures, respecting the rights of all its employees, inviting the union to engage in a constructive dialogue, and providing the authorities with all requested information.

According to Newmont, last year Peñasquito contributed $1.9 billion in economic value to Mexico, including $643 million in employee wages and benefits, tax and royalty payments to federal, state and local governments, and investments in community infrastructure and water projects. Minera Peñasquito is the largest employer in Zacatecas, Mexico with a direct workforce of more than 5,000. The mine supports another 28,000 people and their families in neighboring communities and across the country who are part of the mine’s local and national supply chain.