Avocet closes mine due to labour dispute

13th May 2011 12:14

Avocet Mining has halted operations at its Inata mine in Burkina Faso due to what the firm called "illegal labour unrest". The gold mining company said problems began as a result of a breakdown in on-going discussions involving wage reclassifications, general salary increases and other benefits.Discussions were ongoing with a committee representing the Inata mine's workforce, assisted by various ministries and departments in the Burkina Faso government in an effort to mediate an amicable resolution of the situation, the firm said. Avocet added it was confident that the work stoppage would not be prolonged and it will provide further updates in due course."This is not an isolated incident," said Ambrian Capital's mining analyst Duncan Hughes."We note that Iam Gold announced a similar situation at its Essakane Mine yesterday, and believe other mines in the country are dealing with a similar situation."On Thursday South African miner, Eastern Platinum, said its flagship Crocodile River Mine had been damaging following a wage dispute with members of the National Union of Mineworkers. It said following a break down in wage negotiations on 6th May employees drove mine vehicles through the security gate to the Zandfontein Mine. They then occupied the mine in what the company called "illegal action". After staff vacated the mine the following day the firm said a safety inspection uncovered sabotage of underground electrical and pumping equipment that resulted in flooding, as well as damage to the ventilation system. The Crocodile River Mine has now reopened.