Tuesday, January 30, 2007

by Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com

PARAMARIBO, Suriname: For a fourth consecutive day production at IAMGold’s Rosebel gold mine in Suriname was suspended Monday after workers went on strike late Thursday afternoon. Meanwhile, the company’s management have terminated all activities at the plant and called on the workers to stay home and not to report for duty until further notice.

In a press release, IAMGold contend that the walk out is an illegal strike and that the company will take legal action against the union to end the strike. According to several workers, the strike is necessary because the management is dragging out negotiations for a salary hike and has refused to meet their demands. Meanwhile there is no indication that the sides are closer to an agreement. “This is a pure legal work stoppage,” union leader Errol Snijders told reporters Sunday.

Monday morning several of the 800 workers left the plant for the capital, indicating that they could no longer agree with the tactics of the union. It’s alleged that over the weekend some mining equipment was damaged by workers. Reports indicate that 17 All Terrain Vehicles and 3 haul pack trucks were disabled, while the tyres of 6 other haul pack trucks were punctured. The electricity to the gold refinery was also sabotaged, as was the water supply.

Minister of Defence, Ivan Fernald, confirmed the damages. According to company officials, the company will perform a stocktaking of all the damages. IAMGold will take legal steps to seek compensation from the union for all losses suffered.

Gregory Rusland, minister of Natural Resources and Energy, in an invited comment, said that any stoppage of the gold production at the Rosebel plant won’t hurt only the company, but also the government’s interests. The government has a 5 percent stake in Rosebel Gold Mines Inc, while 95 percent of the stock is owned by IAMGold.

According to reports the government sent extra troops to guard the mining plant in Brokopondo, about 100 kilometers south of the capital Paramaribo. Union leader Snijders said that the workers are willing to talk. “What we are doing now is fighting for the rights of the workers and putting some pressure to the management to negotiate,” he argued.

The miners union previously went on strike last year in a bid to force then-owner Cambior to recognise its new union board.

Union leader Snijders further noted that taking this issue to the court won’t solve the problems. “Judges don’t resolve labour disputes,” he said, noting that labor conflicts should be tabled at the Intermediation Commission for Labour Disputes.

Union leaders and management of the mining company were summoned to appear before the Commission on Monday night, in order to broker a solution. “We will adhere to any decision taken by the Commission,” said the union president.

The Rosebel mine is the most important asset of IAMGold and was acquired in November 2006 with IAMGOLD’s acquisition of Cambior. Cambior began its involvement in the Rosebel project in 1994, earning a 50 percent interest through the funding of exploration and development and in 2002, acquired the remaining interest in the project from Golden Star Resources Ltd. In 2003 construction and development of a 14,000 tonne-per-day mine began. On February 11, 2004, at a cost of US$95 million, the facilities were completed on time and on budget.

IAMGold`s shares on the Toronto Stock Exchange fell 3.73 percent on Friday to C$9.82/share. Rosebel produces about 341,000 ounces gold annually, making it Cambior Inc.’s most profitable gold mine before the C$1.17 billion take over of IAMGold in late 2006. The acquisition boosted IAMGold`s resources to 1.1 million ounces per year to become the tenth-largest gold producer in the world with enlarged reserves containing an estimated 9.7 million ounces of gold, within measured and indicated resources of almost 21 million ounces.

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