Breaking: Newmont Shutdown Spikes Silver
Newmont Strike in Global Context
Silver had a strong day today up over 3.5%. Cheerleading aside, this rally had to be in part a product of the news out of Newmont Mexico (big silver producer) where the company retaliated against a striking union by announcing a shut down of operations.
Not too long ago, Ghana negotiated with Newport Mines to purchase a portion of its gold production directly. This was detailed in Five Reasons Why Ghana is Good For Gold. It would also seem that event may have been a sign of room for negotiation with the miner around the globe. Today we move to Mexico, and the re-negotiation is in Silver.
DENVER--(BUSINESS WIRE)--Jun 8, 2023--
Newmont Corporation announced today it has suspended operations at the Company’s Peñasquito mine in Mexico while refuting claims by the National Union of Mine and Metal Workers of the Mexican Republic (“the Union”) regarding violating legal regulations and labor agreements. The Company urged the Union to abide by the mutually agreed Collective Bargaining Agreement (“CBA”) negotiated and signed by both parties in June of 2022.
Apparently: Penasquito production comes in at around 30M+ ounces of Silver according to @TheLastDegree
This shutdown is significant for several reasons.
- First at the highest level the world is definitely moving towards what it feels are more equitable distributions of profits as evidenced between the BRICS and G7. This is that concept manifest in a national venue.
- Second and more industry focused, countries are moving to nationalize natural resources as mercantilism takes hold to various degrees. One can see it in Oil, Metals, and Lithium from Europe to China.
- Finally, and more tactically, while this strike may not work, it only entices others to follow suit. Especially in countries nationalizing and negotiating with the G7 for better deals in general.
Whatever the outcome, cost of production for Silver and Gold will rise.
Today’s GoldFix Posts
Newmont Announces it has suspended operations at Peñasquito Silver mine in Mexico
China’s Persistent Gold Accumulation: A Seven-Month Surge in Holdings
Research: The U.S. Told Russia to Link the Ruble to Gold in 1993
Gold: Little to no production hitting the market and somewhat inelastic demand from Central Banks
