Vancouver – IamGold (IMG-T, IAG-N, IGD-A) has suspended production at its Rosebel mine in Suriname due to what the company is describing as an illegal work stoppage by unionized employees.
“This is an unanticipated work stoppage and our sense is that it won’t be long in duration,” said Lisa Doddridge, a spokeswoman for IamGold, which has described Rosebel as its most important asset.
Ms. Doddridge estimates that it accounts for about 30% of the company’s global gold output and was expected to produce 335,000 oz in 2006, at a cost of about US$240 an oz.
In a press released Toronto-based IamGold said its Rosebel Gold Mines subsidiary is seeking an injunction to stop the illegal activity and will seek damages for all losses suffered. Meanwhile, Rosebel management has requested that employees voluntarily end the illegal work stoppage and return to work.
At December 31, 2005, Rosebel employed a workforce of approximately 949 national and expatriate employees.
Mr. Doddridge said the company is optimistic that the dispute would be resolved quickly because the two sides have been in negotiations since June 2006, and came close to striking a deal. “We don’t see this as a major problem.”
IamGold shares fell 38 to $9.82 in Toronto, January 26 following the announcement of the work stoppage.
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