Avocet, Iamgold stop work at Burkina Faso mines

Avocet Mining plc and Iamgold Corp have temporarily halted work at their gold mines in Burkina Faso due to labour unrest.

AIM-listed Avocet said it stopped work at its Inata gold mine in Burkina Faso due to unrest over illegal labour.

The unrest is resultant from a breakdown in on-going discussions involving wage reclassifications, general salary increases and other benefits, the gold miner said.

Avocet added it is continuing discussions with a committee representing the Inata mine’s workforce, and is being assisted by various ministries and departments in the Burkina Faso government in an effort to mediate an amicable resolution of the situation.

The company said it “is confident that this work stoppage will not be prolonged” and that further updates would be provided “in due course”.

Inata is Avocet’s sole producing asset in West Africa. The company said last week the operation produced almost 48,000oz of gold in the first quarter of 2011, slightly exceeding forecasts.

Meanwhile, Iamgold said work was stopped at its Essakane mine pending resolution of some labour unrest.

Steve Letwin, Iamgold president and chief executive officer, said: “We are currently in negotiations to resume operations as quickly as possible and are confident that this work stoppage will not be prolonged nor have a material impact on the company.

“We intend to provide further updates when there are any significant changes to the current situation.”