Vidal Backs Cerro Negro Workers and Demands Labor Quota Compliance

The governor of Santa Cruz, Claudio Vidal, again addressed the conflict at the gold deposit Cerro Negro, following working meetings and inspections that the provincial Government has been conducting at Newmont's operations. The governor backed the mining unions' claims and stressed that the province acted only after months of unresponsiveness from the company.

"The work we are doing with the different unions linked to mining activity is important. This did not happen overnight. We heard the demands of workers through the different unions in the sector. There are claims that are extremely logical and concerning due to the operator's lack of response," Vidal said when asked about the situation at the deposit.

Negotiation meeting, following the work stoppage at Cerro Negro.

The conflict escalated in recent weeks after Newmont decided to suspend operations at Cerro Negro and demobilize part of its workforce following a series of safety and hygiene inspections conducted by the provincial Government, which generated tension with the union sector and raised concerns about the continuity of jobs in the region.

Law 90/10, at the center of the demand

Vidal placed special emphasis on compliance with Law 90/10, the Santa Cruz regulation requiring mining operators to have 90% of their workforce comprised of province residents. "There is a law that all operators must respect, which is Law 90/10, which benefits workers living in Santa Cruz province. That is something key, fundamental, because we know there is unemployment throughout the country and in the province as well, we are not an isolated case. This is worth emphasizing," the Governor stated.

The regulation—which in its latest update raised the local employment quota from 70% to 90% and extended the effective residency requirement from three to six years—has been generating debate in the sector, between those who view it as a necessary tool to guarantee roots and genuine employment in the province, and those who warn about the technical and legal difficulties of implementing it in an industry that often requires specialized labor from other regions.

An extensive meeting as a first step

Regarding the steps taken so far, Vidal explained: "We did what we had to do after several months of demands and the operator not listening. Fortunately, yesterday was an extensive meeting where the parties presented different issues that we will have to resolve in the coming days."

The Cerro Negro deposit, located in the Macizo del Deseado, is one of the country's main gold operations and the most important in Santa Cruz, with annual exports between US$400 and US$600 million. The company had announced at the beginning of the year an investment of around US$800 million to extend the deposit's mine life beyond 2035, as part of the Cerro Negro Expansion 1 (CNE1) project, which includes the creation of new direct jobs.