Denver, CO

Gold miner Newmont to pay Mexican workers $70 million in union deal

Matt Whittaker

By Matt Whittaker / NewsBreak Denver

(Denver, Colo.) Newmont Corp. and a union representing workers at a mine in central Mexico reached a profit-sharing agreement that averts a strike.

Denver-based Newmont – the biggest gold miner in the world, both by stock market value and ounces produced – will pay the workers a profit-sharing bonus of the equivalent of $70 million, the company said this week.

Workers at the Peñasquito mine – which produces gold, silver, lead and zinc – had threatened to strike, according to Business News Americas, citing local press reports. 

The threat came amid broader labor pushback against mining companies after Mexican profit-sharing rules changed last year, the website reported. Although Mexican law entitles mining workers to 10% of company profits, an overhaul of the rules in 2021 capped how much of that bonus they could earn based on certain criteria.

The Newmont and union agreement allows workers to earn up to the full 10 percent share.  

“Through a respectful dialogue and the active participation of union leadership including Senator Napoléon Gómez Urrutia, we reached this agreement without interruption to the operation, ensuring a lasting relationship for the future of Peñasquito,” Newmont CEO Tom Palmer said.

The $70 million payout averting the strike is based on results from 2021 when Newmont reported a profit of more than $2.3 billion.

Newmont operates mines in North and South America, Africa and Australia. Last month, the company said it completed the acquisition of mining claims in Canada to make them available for indigenous land planning.

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Matt Whittaker writes about natural resources industries, including oil and gas, mining, renewable energy, agriculture and cannabis. He's been based in the Denver metro area since 2013. You can follow him on Twitter @mattswhittaker.

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