Newmont Announces End of Strike at Peñasquito Mine in Mexico
16 Outubro 2023 - 7:30AM
Business Wire
Newmont focuses on a safe return-to-work plan
and a quick ramp up of operations while strengthening workforce
relationships
Newmont Corporation (NYSE: NEM, TSX: NGT) announces it has
reached a definitive agreement (“Agreement”) with the National
Union of Mine, Metal, and Allied Workers of the Mexican Republic
(the “Union”) to end the strike initiated by the Union on June 7,
2023, at the Company’s Peñasquito mine located in the Mexican state
of Zacatecas. On October 13, 2023, Newmont and the Union submitted
the Agreement to the Mexican Labor Court, which gave its approval,
thus ending the strike.
The strike was initiated by the Union demanding the Company pay
additional profit sharing, equivalent to double the amount agreed
upon one year ago, along with other alleged violations of the
Collective Bargaining Agreement.
“This unnecessary strike has caused significant hardship for all
of our employees, contractors, host communities, suppliers and
customers,” said Tom Palmer, Newmont’s President and Chief
Executive Officer. “We will continue to honor our commitments,
comply with the law and the Collective Bargaining Agreement, and
work to protect the long-term value of Peñasquito.”
Key terms of the Agreement include:
- Newmont will not pay any additional incremental profit sharing
for 2022. This was the basis for the strike, and the profit sharing
paid by the Company this year fully complied with Mexican law and
the Collective Bargaining Agreement.
- If, as a consequence of the strike, the Peñasquito mine reports
no profit in 2023, then Newmont agrees to pay an additional bonus
in Q2 next year, equivalent to two months’ wages as the Company
recognizes the hardship employees have experienced given the
duration of the strike.
- Newmont will pay employees a fixed amount, roughly equivalent
to 60% of wages lost, since the strike began on June 7, 2023. This
payment is intended to mitigate the financial impact that the
strike, initiated by the Union, has had on the Company’s
workforce.
In addition, as part of the separate, annual wage negotiations
under the Collective Bargaining Agreement, Newmont and the Union
have agreed to an 8% wage increase, in line with Mexican mining
industry wage increases for 2023. These wage negotiations were not
part of the Union’s claims as grounds for taking the strike
action.
Newmont’s priority is to safely return the workforce to this
Tier 1 operation while ensuring an orderly ramp-up in production.
It is expected to take several weeks to achieve stable production
levels and a status update will be provided during the Company’s Q3
earnings call on October 26, 2023.
In 2022, Peñasquito contributed US$1.9 billion in economic value
to Mexico, including US$643 million in employee wages and benefits,
taxes, and royalty payments to federal, state, and local
governments, and investments in community infrastructure and water
projects. Minera Peñasquito is the second largest employer in
Zacatecas, Mexico with a workforce of more than 5,000 individuals.
The mine supports another 28,000 people and their families, in
neighboring communities and across the country, who are part of the
mine’s local and national supply chain.
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, silver, zinc, and lead. The Company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in North America, South America, Australia, and
Africa. Newmont is the only gold producer listed in the S&P 500
Index and is widely recognized for its principled environmental,
social and governance practices. The Company is an industry leader
in value creation, supported by robust safety standards, superior
execution, and technical expertise. Newmont was founded in 1921 and
has been publicly traded since 1925.
At Newmont, our purpose is to create value and improve lives
through sustainable and responsible mining. To learn more about
Newmont’s sustainability strategy and initiatives, go to
www.newmont.com.
Cautionary Statement Regarding Forward-Looking
Statements
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbor created by such
sections and other applicable laws. Where a forward-looking
statement expresses or implies an expectation or belief as to
future events or results, such expectation or belief is expressed
in good faith and believed to have a reasonable basis.
Forward-looking statements may include, without limitation,
expectations regarding return-to-work plans and next steps, timing
of restart and ramp-up of operating activities, future production
levels, future costs, including wages and other expenses, ability
to achieve operating and financial targets and outlook, future
union and labor relations and other forward-looking expectations
related to Peñasquito. Expectations of future events are based upon
certain assumptions, which may prove to be incorrect, and remain
subject to risks, which could cause actual results to differ
materially. For a discussion of risks and other factors that might
impact future looking statements, see the Company’s Quarterly
Report on Form 10-Q for the quarter ended June 30, 2023, filed with
the U.S. Securities and Exchange Commission (the “SEC”), under the
headings “Forward-Looking Statements” and “Risk Factors," including
under Part II – Item 1A under the heading “Our Peñasquito operation
in Mexico is subject to social, political, regulatory, and economic
risks,” which is available on the SEC website or www.newmont.com,
and other recent SEC filings.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231016543931/en/
Media Contact Omar Jabara
720.212.9651 omar.jabara@newmont.com
Investor Contact Daniel Horton
303.837.5468 daniel.horton@newmont.com
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