Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Newmont has suspended operations at its Peñasquito mine in Mexico in response to a labor strike notice, the gold miner said on Thursday.
On June 7, the National Union of Mine and Metal Workers of the Mexican Republic notified Newmont of a strike action demanding an increase in the profit-sharing benefit provided for in the Collective Bargaining Agreement (CBA) from 10% to 20%, the company said.
The New York Stock Exchange had halted trading of Newmont’s shares briefly before the strike action.
In July last year, the company had reached an agreement to pay its represented workforce a profit-sharing bonus up to 10%.
The mine had an annual attributable gold production of 686,000 ounces in 2021.
The union did not immediately respond to a Reuters request for comment.
Newmont added it remains willing to participate in conciliation meetings to reach a resolution in accordance with the CBA.
(By Ankit Kumar and Niket Nishant; Editing by Krishna Chandra Eluri)
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