The Canadian-owned company IAMGOLD announced last week that the proven gold reserves in the Rosebel mine in Suriname has increased by 19% from 3.2 million ounces to 3.8 million ounces, according to the Suriname daily de ware Tijd.
This news, the newspaper reported, combined with the announcement that the mine is operational again after a strike had closed it for almost a month, has brought about a 5% increase in IAMGOLD’s shares on the stock exchange in Toronto, Canada.
Meantime, following the strike, IAMGOLD`s shares on the Toronto Stock Exchange fell 3.73 percent 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.
Early February, the Associated Press had reported that IAMGOLD’s Rosebel gold mine had been closed after striking workers reportedly flooded part of the plant, welded shut some gates and doors, and damaged 17 all-terrain vehicles. The army was also called out.
AP had said that a number of workers began the strike one week earlier at the mine which is located at Brokopondo, some 60 miles south of the capital Paramaribo, after negotiations over a collective bargaining agreement were perceived to be going too slowly.
While the union had said that both sides had reached a deal to end the strike, the parent company IAMGOLD – which is also the parent company of Omai Gold Mines Limited in Guyana – had said that was not the case.
During the strike, the union’s board and more than 100 workers had remained in the plant at the mine site.
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.
The Suriname government has a 5 percent stake in Rosebel Gold Mines Inc., while 95 percent of the stock is owned by IAMGOLD. The government had to send extra troops to guard the mining plant in Brokopondo. And President Ronald Venetiaan had told the parliament that the military action at Rosebel Gold Mines was the result of threats made by the striking workers.
The Rosebel mine is the most important asset of IAMGOLD and was acquired in November 2006 with IAMGOLD’s acquisition of Cambior.
