The El Limón-Guajes (ELG) mining unit of Canadian firm Torex Gold Resources overtook the Peñasquito mine owned by US company Newmont as Mexico’s biggest gold producer in 2023, mainly due to a four-month strike at the latter.
Last year, ELG, located in Guerrero state, produced 453,800oz of the yellow metal, according to the 2023 annual report of Mexican mining chamber Camimex, although the amount was 4.3% lower than in the 2022 report.
Peñasquito in Zacatecas state slipped to fifth in the ranking of Mexican gold mines last year, with output reaching 143,000oz and plummeting almost 75% versus 566,000oz in 2022.
Impact of the Strike at Peñasquito
On June 7 last year, some 2,000 members of the Peñasquito mining, metallurgical, and steelworkers’ union voted to go on strike after alleging that the company had breached the collective bargaining agreement and the profit-sharing scheme with employees.
Operations at the mine were halted until mid-October, when workers finally approved an offer from the company and agreed to lift the strike.
As a consequence of the stoppage at Peñasquito, Sonora also displaced Zacatecas as the top gold-producing state in the country, according to Camimex.
Total Gold Production and Leading Mines
According to data from statistics office Inegi cited in the Camimex report, Mexico’s total gold production was down 6.3% in 2023 at 4.47Moz.
Second in the list of the top-producing mines was La Herradura, owned by Fresnillo plc, followed by Mulatos, belonging to Alamos Gold, and Los Filos, owned by Equinox Gold.
Leading Gold Producers
By company, Fresnillo plc was the largest gold producer in 2023, with Torex ranked second, then Alamos Gold, First Majestic, and Agnico Eagle Mines. Together, these five companies accounted for 36.4% of total output, according to the chamber’s annual report.
Insight:
It’s important to note that labor disputes and strikes can have a significant impact on the production and ranking of mines in the industry. Understanding the dynamics between companies and labor unions is crucial for predicting potential disruptions in production and output.
Furthermore, the shift in top gold-producing states highlights the evolving landscape of mining activities within Mexico, indicating the importance of monitoring regional developments and their implications for the industry.
Additionally, the concentration of gold production among a few key companies underscores the competitive nature of the market and the strategic positioning of these industry players in shaping the overall output levels.
