NEM - Peñasquito strike is causing significant harm to Mexican mining group says

2023-07-05 19:47:23 ET

Talks this week between Newmont ( NYSE: NEM ) and workers at the Peñasquito mine have failed to resolve the strike that has lasted nearly a month, and Mexico's chamber of mines said Wednesday the ongoing stoppage will significantly harm the country's already-weak production.

The suspension of operations at Mexico's biggest mine in terms of production of gold and silver is expected to weigh on national mining production that already came in flat Y/Y in the four months between January and April, and Mexico's FY 2022 mining output fell 5.3% Y/Y to 317B pesos (~$15.8B), with gold production accounting for 30.6% of the total.

The National Union of Mine and Metal Workers claims the company has failed to make agreed payments and has not complied with the collective agreement signed a year ago.

Grupo Mexico's ( OTCPK:GMBXF ) San Martín mine, like Peñasquito in Zacatecas state, is also host to a labor dispute that prompted the U.S. to ask Mexico to review possible workers rights violations under the U.S.-Mexico-Canada Agreement.

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