ELG Ousts Newmont as Top Gold Mine Producer in 2023

Torex Gold’s El Limón-Guajes (ELG) displaced Newmont’s Peñasquito mine as the largest gold producer in Mexico in 2023. The decline in Newmont’s production is primarily attributed to labor disputes at Peñasquito, resulting in a four-month blockade. The strike also caused Sonora to displace Zacatecas as the leading gold-producing state, after Zacatecas held the top rank in 2022.

According to the 2023 CAMIMEX Report, ELG produced 453,800oz of gold, although this volume represented a 4.3% decrease compared to 2022. Fresnillo’s La Herradura followed in second place with 355,550oz, Alamos Gold’s Mulatos was third with 212,800oz, while Equinox Gold’s Los Filos came in fourth with 151,100oz. Peñasquito fell to fifth place, producing 143,000oz —a decline of almost 75% from the 566,000oz produced in 2022.

By company, Fresnillo was the top gold producer in Mexico in 2023, followed by Torex Gold, Alamos Gold, First Majestic, and Agnico Eagle Mines. These five companies represent 36.4% of the Mexico’s total gold production in 2023.

What Happened at Peñasquito?

On June 7, 2023, 2,800 Newmont workers demanded higher profit payments from the company and went on strike. The SNTMMSSRM accused Newmont of violating their 2022-2024 collective labor agreement, arguing that profit payments (PTU) should increase from 10% to 20%. 

Newmont highlighted that the company will not pay any additional profit sharing for 2022, which was a key factor that prompted the workers to initiate the strike. This decision, according to Newmont, was based on the legality of the PTU distributed in 2022. 

After reaching an agreement, the company officially declared the strike ended on Oct. 16, 2023, while SNTMMSSRM announced the end of the strike on the night of Oct. 5, 2023. The resolution of this conflict represents a relief to both Newmont and Zacatecas’ finances, as the strike cost over US$3.7 million per day and represented a decrease of 72% in gold production in June 2023.