Newmont hands $70 million to Peñasquito mine workers

The uncapped profit-sharing bonus of up to 10% is valued at $70 million, the company said.

“We are pleased to have reached this agreement with the National Union of Mining, Metallurgical, Iron and Steel and Similar Workers of the Mexican Republic (…) without interruption to the operation,” Newmont CEO Tom Palmer said in a statement.

The Greenwood Village, Colorado-based miner spent last year building a pipeline of new exploration targets at Peñasquito, where just 20% of the 650km2 property has been drilled.

The gold miner expects to extend the operation’s productive life beyond 2040.

Peñasquito, located in Mexico’s Zacatecas state, is forecast to produce 475,000 ounces of gold this year.

The open pit mine is the world’s fifth largest silver mine and Mexico’s second biggest.