Canada’s IAMGOLD Corp. (TSX
IMG), (NYSE: IAG) denied
Thursday news of illegal miners forcing the company to halt operations at
its Rosebel gold mine, in Suriname, for the second time this year, saying it
continues to resume mining activities at the asset.
Local news site Starnieuws
had reported that a fresh influx of illegal miners had prompted the miner
to stop work and remove equipment and workers from the mine’s southern pits.
The Toronto-based firm suspended work at the mine in early August, following an
incident involving police that caused the death of an artisanal miner and left
some equipment unusable.
Shortly after, IAMGOLD laid off 325
contractors for the South American mine and lowered its production
forecast for the year to between 765,000 to 810,000 ounces of gold, to reflect
the operation’s halt.
The company has since resumed
operations in
the northern pits and its getting close to fully ramp up activities at Rosebel’s
southern pits.
“We continue to work closely with,
and have the full support of, the local community, the union and the highest
levels of the government,” it said
in the statement.
Last month, the company said it
would rehire the dismissed workers after reaching an agreement with the local
community. The deal will enable the haul of Saramacca ore to the mine’s mill in
early November.
Rosebel, located in the
mineral rich Brokopondo district, about 85 km south of the capital city of
Paramaribo, has often been a target for illegal miners. This has led the
company to allow some artisanal miners to work on the concession.
The Canadian company owns 95% of
the gold mine and the government of Suriname holds the remaining 5%.
IAMGOLD made
headlines in September after China Gold International Resource said
the Canadian miner would “fit well” with its acquisition strategy.
Following the highly publicized
multi-billion mergers of Barrick
– Randgold and Newmont – Goldcorp, rising gold prices have spurred
an anticipated wave of consolidation in the sector, which
has favoured Canada and Australia.