2023-06-23 08:36:55 ET
Newmont ( NYSE: NEM ) has declared force majeure on deliveries of some metal products from its Peñasquito mine in Mexico, due to interruptions in production caused by strike action, Reuters reported Friday.
Two weeks ago , Newmont ( NEM ) said Mexico's National Union of Mine and Metal Workers notified it of strike action in pursuit of an increase in the profit-sharing benefit provided for in the collective bargaining agreement to 20% from 10%.
Peñasquito is a major producer of zinc and lead, as well as gold; in February, Newmont ( NEM ) guided for full-year production from the mine of approximately 190K-208K metric tons of zinc and 77K-86K tons of lead.
Worries about zinc supply and the potential for tightness from production cuts have raised zinc prices on the London Metal Exchange, which at ~$2,420 have gained more than 7% since the end of May.
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Newmont declares force majeure on Peñasquito mine products