Strike at Mexico Gold Mine
The strike at a gold mine in Mexico has been costing its owner, Canadian miner Alamos Gold Inc., an estimated $3.7 million a day in lost production. The strike began on August 1, 2023, and has been ongoing since then.
Background of the Strike
The strike is taking place at the Mulatos mine in Sonora, Mexico, which is owned by Alamos Gold. The mine is one of the largest gold producers in Mexico, and it has been in operation since 2004. The strike is being led by the National Union of Mine, Metal, Steel and Allied Workers of the Mexican Republic (SNTMMSSRM). The union is demanding higher wages and better working conditions for its members.
Alamos Gold’s Response
Alamos Gold has responded to the strike by offering a wage increase of 8.5 percent, which is in line with the inflation rate in Mexico. The company has also offered to improve working conditions, including better safety protocols and improved access to medical care. However, the union has rejected the offer, and the strike continues.
Impact of the Strike
The strike has had a significant impact on Alamos Gold’s operations. The company has had to suspend operations at the mine, resulting in a loss of production of approximately 3,000 ounces of gold per day. This has resulted in a loss of revenue of approximately $3.7 million per day.
Negotiations
Alamos Gold and the union have been in negotiations since the strike began. The company has offered to increase wages by 8.5 percent, as well as improve working conditions. However, the union has rejected the offer and is demanding a higher wage increase.
Outlook
It is unclear when the strike will end. Alamos Gold has said that it is committed to reaching a resolution with the union, but it is unclear if the two sides will be able to come to an agreement. If the strike continues, it could have a significant impact on Alamos Gold’s operations and profitability.