The Peñasquito mine, located in Mexico, recorded a 74.7% year-on-year drop in its gold production in 2023, to 143,000 ounces, affected by a four-month strike.

At the same time, its silver production fell by around 40% to 18 million ounces. 

To highlight: the Peñasquito mining unit ranked as the largest gold producer in Mexico in 2022 and also as the main silver producer.

This mine belongs to Newmont, a U.S. company and one of the largest gold miners in the world.  

How did the strike develop?

On June 7, 2023, the Sindicato Nacional de Trabajadores Mineros y Metalurgicos de la Republica Mexicana (the «Union») notified the Company of a strike action. 

In response to the strike notice, the company suspended operations at Peñasquito. 

Operations remained suspended throughout the third quarter of 2023. 

On October 13, 2023, Newmont reached a final agreement with the Union, which also received approval from the Mexican Labor Court. 

Peñasquito Mine

Under the agreement, the company will pay Peñasquito workers a fixed amount equivalent to approximately 60% of wages for the duration of the strike, and an additional bonus of two months’ wages to be paid in the second quarter of 2024, given that the Peñasquito Mine did not report earnings in 2023 as a result of the strike. 

In addition, as part of a separate annual negotiation under the Collective Bargaining Agreement, the Company agreed to an 8% annual wage increase effective August 1, 2023, which is in line with Mexican mining industry wage increases for 2023. 

Zacatecas

The Peñasquito mine is an open pit operation located in the northeast corner of the state of Zacatecas, approximately 125 miles (200 kilometers) northeast of the city of Zacatecas and is accessible by paved roads with a private airport near the site. 

The property commenced production in 2009 and commercial production was achieved in 2010. 

Goldcorp acquired ownership of the mine in 2006 when it acquired Glamis. In 2019, Newmont acquired Goldcorp, gaining full ownership interest in Peñasquito. Peñasquito consists of the Peñasco and Chile Colorado open pit mines.