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Iamgold (TSX:IMG) resumes operations at Rosebel Gold Mine

Mining
27 July 2020 16:06 (EDT)
IAMGOLD - Executive Vice President & CFO, Carol Banducci

Source: The Financial Post

IAMGOLD (IMG) has resumed work at its Rosebel Gold Mine in Suriname after seven employees tested positive for COVID-19 in mid-June.

The mid-tier mining company announced the infections on June 16 this year, noting that, despite extensive steps to manage the outbreak, the Rosebel Union challenged the implementation of further policies in an effort to maintain operations.

According to the news release, the Union had elected to take action to reduce the number of people sharing accommodations, thereby forming a basis for a work stoppage.

“Due to Union resistance to the implementation of COVID-19 control measures, we are suspending operations until the appropriate controls are in place to protect the safety of all employees,” IAMGOLD said at the time.

Now, following an agreement between the company and the Rosebel Union, as well as clearance from the COVID-19 Outbreak Management Team of Suriname, the Rosebel Gold Mine has restarted its operations.

A workforce recall process began earlier this week, while the site’s mill has recommenced the processing of stockpiled material and Saramacca ore. Diamond drilling activities have also resumed, and contractors at Saramacca are continuing their road construction.

Despite the restart, IAMGOLD cautioned that it continues to face uncertainties regarding its operating activities and financial results.

The company cited the prevailing uncertainty surrounding the extent of the COVID-19 pandemic and the potential impact on gold prices and suppliers, as reasons for the cautious outlook.

Located in the mineral-rich Brokopondo district in north eastern Suriname, South America, the Rosebel Gold Mine is owned 95 per cent by IAMGOLD, with the remaining five per cent held by the country’s government.

IAMGOLD (IMG) is currently up 2.75 per cent and is trading at C$6.73 per share at 2:55pm EDT.

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