In Suriname the Canadian-owned IAMGOLD’s Rosebel gold mine has been temporarily closed after striking workers reportedly flooded part of the plant, welded shut some gates and doors, and damaged 17 all-terrain vehicles, accor-ding to a company official on Thursday.
The Associated Press (AP) reported on Thursday that a number of workers began the strike one week ago at the mine which is located at Brokopondo, some 60 miles south of the capital Paramaribo, stating that negotiations over a collective bargaining agreement were going too slowly.
The union had said earlier this week that both sides had reached a deal to end the strike, but parent company IAMGOLD – which is also the parent company of Omai Gold Mines Limited in Guyana – had said that was not the case, AP reported.
According to the Suriname newspaper de Ware Tijd (dWT), the special commission dealing with labour disputes had recommended on Monday that the workers begin working immediately and had told the company’s management to reopen operations. But the matters that had led to the strike are still standing, the Suriname daily said. But union leader Errol Snijders said that the workers were now waiting for management to reopen the company.
During the strike, the union’s board and more than 100 workers remained in the plant at the mine site. AP quoted a spokesman for Rosebel gold mine, Roy van Aerde as saying that “the damage was done during the first day of the strike. A group of workers were able to stop them from causing more damage.”
But Thursday evening on the Suriname Today talk show, union chairman Snijders, a former labour minister, denied that union members had damaged the equipment.
Meanwhile, Ivan Cairo, Caribbean Net News Suriname correspondent, reported that IAMGOLD in a press release had contended that the walkout was an illegal strike and the company would take legal action against the union to end the strike. But according to several workers, the strike was necessary because the management was dragging out negotiations for a salary hike and had refused to meet their demands.
However, the union leader had told reporters Sunday that this was a purely legal work stoppage. But workers who were united in the Rosebel Gold Mines Workers’ Organisation (RGWO) were reported to be furious with Snijders. According to de Ware Tijd the workers in a letter to management disassociated themselves from what they described as the “criminal actions” of the union boss. Snijders had been accused of allowing the sabotage of company property. In the letter the workers also indicated that they wanted to begin work immediately as they had fixed costs and their financial position would be worsening as the plant remained closed, de Ware Tijd said.
On Monday morning several of some 800 workers left the plant for the capital indicating that they could no longer agree with the tactics of the union in light of the alleged sabotage of mining equipment. According to reports, the electricity to the gold refinery was also sabotaged, as well as the water supply.
IAMGOLD to seek compensation
Caribbean Net News quoted Suriname Minister of Defence Ivan Fernald as confirming the damage. Meantime, company officials said they would be carrying out a stocktaking of all the damage and IAMGOLD will pursue legal steps to seek compensation from the union for all losses suffered.
Suriname Minister of Natural Resources and Energy, Gregory Rusland in an invited comment told Caribbean Net News that any stoppage of gold production at the Rosebel plant wouldn’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 the Canada-based IAMGOLD.
According to reports the government sent extra troops to guard the mining plant in Brokopondo. And on Tuesday afternoon President Ronald Venetiaan said in parliament that the military action at Rosebel Gold Mines last weekend was the result of threats made by the striking workers. According to de Ware Tijd, Venetiaan stressed that the reinforcements sent to the location in Brokopondo were to guard explosives and poisonous chemicals during the unrest at the gold company. However, the opposition remarked that the soldiers were not at the bunker but at the canteen while television pictures revealed what was described as the aggressive attitude of the soldiers towards the striking workers.
On the other hand, Snijders pointed out that “what we are doing now is fighting for the rights of the workers and putting some pressure to the management to negotiate.”
The miners union
previously went on strike last year in a bid to force then-owner Cambior to recognise its new union board.
According to Caribbean Net News, 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 labour 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. In February 2004 the facilities were completed at a cost of US$95 million.
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 takeover of IAMGOLD late last year.
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.
In Guyana, IAMGOLD has acquired Omai Bauxite Mining Inc. (OBMI) and Omai Gold Mines Ltd, where underground exploratory work is ongoing. Omai Gold officially closed its operations in 2005, but still has some 100 employees on site for exploration.
On Thursday IAMGOLD indicated that it wanted an “amicable” resolution to the sale of the Linden bauxite operations. It said it will incur a loss of over US$30M on conclusion of the transaction.
IAMGOLD which acquired 70% of OBMI when it took over Cambior Inc. last November, said Cambior had informed government of its intention since June 2006 to dispose of its interest in the loss-making operation.
IAMGOLD said that when OBMI’s proposed sale to Bosai Minerals Group Co Ltd of China was made known to government through the National Industrial and Commercial Investments Ltd (NICIL) late last year, the government said it was not provided with sufficient information to arrive at a considered decision.
As the 30% shareholder in OBMI, government is required, under the shareholders’ agreement it signed with Cambior, to either exercise its right of first refusal and purchase the 70% within 30 days or waive the right. It has done neither as yet having asked for an extension to the January 22 deadline to February 12 to which IAMGOLD and Bosai have agreed.
