Newmont Declares Force Majeure On Deliveries From Mexican Zinc Mine After Strike

Newmont (TSX: NGT) is currently unable to deliver contracted metal from its Penasquito Mine in Mexico. Reuters this morning has reported that the company has declared force majeure on certain deliveries.

“Due to interruptions in production caused by the union strike at Newmont’s Peñasquito mine in Mexico, force majeure has been declared with certain customers for some of the mine’s products,” Newmont reportedly said in a statement to the outlet.

The declaration is a result of ongoing strike action that is reducing output from the mine. Penasquito produces zinc, lead and gold, with the mine expected to produce somewhere between 190,510 and 208,654 tonnes of zinc in 2023, and between 77,111 and 86,183 tons of lead.

READ: Newcrest Takes Newmont’s “Best And Final” $19.2 Billion Acquisition Bid

The mine saw a strike begin on June 7, when the company was notified by its union that it was to strike in an effort to get Newmont to meet their demand of increasing a profit-sharing benefit under the collective bargaining agreement from 10% to 20%. The profit sharing benefit was implemented in July 2022, however it seemingly was too little for the satisfaction of the union.

Discussions on the matter are said to be ongoing.

Newmont last traded at $55.32 on the TSX.


Information for this briefing was found via Reuters, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Altamira Gold Encounters Porphyritic Intrusive Rocks In Initial Scout Drilling At Regional Targets

Related News

Newmont Cuts Management Jobs, Merges Units After Newcrest Deal

Gold miner Newmont Corp (TSX: NGT) has dismissed nearly a dozen managers including one executive...

Sunday, December 15, 2024, 07:42:00 AM

Strike At Newmont’s Mexican Mine Nears End After 8% Salary Boost Agreement

After four long months of labor strikes, operations at Newmont’s (TSX: NGT) Penasquito gold mine...

Monday, October 9, 2023, 11:44:00 AM

Newcrest Mining Enters Exclusivity Period With Newmont

It appears that Newcrest Mining (TSX: NCM) was enticed by the final offered made by...

Friday, April 14, 2023, 09:03:06 AM

Newmont Q1 Earnings: Gold Boom Masks Production Problems

Gold may have taken a bit of a beating in the spot markets on Wednesday...

Saturday, April 26, 2025, 12:24:00 PM

Emerita Resources: Aznalcóllar Zinc Project Offers Significant Opportunity

Emerita Resources Corp.(TSX-V:EMO), a Canadian natural resource development company, is preparing to commence development on...

Sunday, April 18, 2021, 02:05:00 PM