How ‘resource debt’ chips away at miners’ growth and investor trust
Over the past decade, resource misclassification has saddled the mining industry with a costly problem.
Newmont, (NYSE: NEM, TSX: NGT) announced Friday that its Mexican subsidiary, Newmont Peñasquito, has agreed on a new collective bargain agreement with its miners’ union for 2024-2026.
The new agreement, Newmont said, reflects the mutual commitment of all parties and is the outcome of open dialogue and safeguards the rights of all workers and provides a solid foundation for continuing operations at Peñasquito.
In 2023, employees at Peñasquito, Mexico’s largest gold mine, downed tools for over four months.
Newmont pegged the financial impact of the dispute at approximately $1 million a day in maintenance costs and $2.7 million a day in lost revenue.
The work stoppage was the third labour dispute at Peñasquito since the company acquired the mine through its merger with Goldcorp Inc. in 2019.
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