MEXICO CITY (Reuters) -A four-month-long labor strike has been lifted at Newmont’s Penasquito gold mine in Mexico after a deal was reached between workers and the company, according to statements from the union and Mexico’s labor ministry released on Thursday.
Mexico is a top 10 gold miner, and Penasquito ranks among the country’s most productive precious metals projects.
Both parties agreed to an 8% salary increase for workers, both statements said, a figure below the 10%-20% hike asked by the union initially.
The union’s statement said the salary raise is retroactive to Aug. 1.
Workers will also receive a 152 million peso ($8.3 million) bonus, the statements noted.
Peñasquito incurred a $23 million hit to operating costs, as well as $15 million in depreciation and amortization due to the work stoppage, according to company data released after the second quarter.
The mine is located some 485 miles (780 km) north of Mexico City in Zacatecas state and primarily produces gold and silver.
($1 = 18.2971 Mexican pesos)
(Reporting by Daina Beth Solomon; Editing by David Alire Garcia)
