Gold giant Newmont (NYSE: NEM) (TSX: NGT) has declared force majeure on deliveries of some metal products from its Peñasquito mine in Mexico, as a strike drags on.

The US-based miner has had operations suspended since June 8, a day after nearly 2,000 unionized workers downed tools at the mine over a dispute regarding profit-sharing and alleged contract breaches.

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The world’s no. 1 bullion producer’s decision, first reported by Reuters, comes as labour action at Peñasquito enters a third week.

The precious metals mine, located in the state of Zacatecas about 770km (480 miles) northwest of Mexico City, is the country’s largest gold operation and the world’s second largest silver mine.

The main bone of contention is a profit-sharing agreement between employees who are members of the National Union of Mine and Metal Workers of the Mexican Republic and Newmont.

Workers are demanding a larger share of the mine’s profit, from the 10% agreed in 2022 to 20%, the company says. The union’s secretary, Jorge Ramon Monsivais, said in an emailed statement that part of their demands are centred around a clarification on how the plan is calculated rather than a percentage increase.

more: https://www.mining.com/newmont-declares-force-majeure-on-penasquito-deliveries