Holt-McDermott strike draws nearer

Workers at Barrick Gold‘s (ABX-T) Holt-McDermott gold mine in Kirkland Lake, Ont., voted 96% in favour of a strike on Friday.

Picket lines won’t start forming just yet, the United Steelworkers local 6409, which represents the workers, must wait until a conciliation officer is appointed to try solve the stalemate, which is hung up on wage dispute.

If the conciliation officer fails to make any inroads into solving the situation, and files a no board report the two sides have to wait 17 days before starting a strike or lockout action.

Barrick says it met with union leaders three times in February, but talks fell apart over union wage demands, which the company called far and beyond anything reasonable.

The old contract covering 140 workers at the mine expired on Sunday, March 31.

The mine churned out 83,577 oz. gold at a total cash cost of US$165 per oz. during 2001. Production in 2002 is expected to climb to 90,127 oz. at a total cash cost of US$148 per oz. The increase is anticipated as a result of higher grades mined from the lower ore zones.

At the end of 2001, the mine had reserves of 1.4 million tons grading 0.21 oz. per ton, or 294,000 contained ounces. Surface exploration this year will concentrate on east-west extensions of the South zone and on geophysical anomalies outlined by induced-polarization surveys. Underground exploration will test depth extensions and potential continuity between known zones.

In all, 84,000 ft. of diamond drilling are planned.