Make Kitco Your Homepage

Iamgold Reports Work Stoppage At Rosebel Gold Mine

Kitco News

(Kitco News) - Iamgold Corp. (TSX: IMG; NYSE: IAG) late Tuesday reported that union workers began a work stoppage at the company's Rosebel Gold Mine in Suriname.

The company argued that the strike was a breach of a labor agreement that outlines a number of procedures that are to occur in the event of a dispute between the company and union. The agreement was finalized in September.

“As a result, Iamgold has triggered force majeure to suspend operations at Rosebel,” the company said in a prepared statement. “Meanwhile, Rosebel has prepared legal actions against the union.”

In Iamgold’s third-quarter earnings report, guidance for Rosebel production was put at 280,000 to 295,000 ounces for 2018. This was roughly one-third company-wide output guidance of 850,000 to 900,000 ounces.

In September, Iamgold reported a 51% increase in reserves at Rosebel, with Saramacca accounting for nearly two-thirds of the increase. Once Saramacca is in or close to full production, Rosebel’s average annual attributable production is expected to increase by 11% to 295,000 ounces from 2020 to 2032, with Rosebel’s mine life extended by five years to 2033, the company said. Production at Saramacca is expected to begin in the second half of 2019.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.