UPDATE 4-Tanzania's Barrick strike on till demands met-union

Fri Nov 2, 2007 11:20am EDT
 
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(Adds other mines request to join strike)

By George Obulutsa

NAIROBI, Nov 2 (Reuters) - A strike disrupting Tanzania's Bulyanhulu gold mine, owned by Canada's Barrick Gold Corp (ABX.TO), will continue until workers' grievances on pay, health and risk allowances are met, a union official said on Friday.

"We have said that we will strike until the employer abides (by) our agreements," Mbaraka Igangula, chairman of Tanzania Mines and Construction Workers Union (TAMICO), told Reuters by telephone from Dar es Salaam.

"From our union, we say we are ready for a round-table negotiation to resolve this problem."

On Tuesday, Barrick said about 1,000 of its 1,971 workers had walked off the job last Thursday in what it termed an illegal strike. Barrick said it had fired half the mine's workforce, and production had been halted.

Igangula said he had received requests from workers in other mines to join in the strike, but had asked for restraint.

"They want to join in the strike. They said 'You injure one, you injure all'. I said it has not gone that far but if the situation worsens we may call for a whole country strike," he told Reuters without saying which mines could be affected.

Barrick has two other operational gold mines in Tanzania, and is in the process of developing a third, as well as a nickel project.

Igangula said all legal procedures were followed in organising the strike.

"The strike is legal. According to the law, you need to register with the commissioner for arbitration, which we did. According to the law, you give a minimum of 48 hours, but we gave seven days notice," he said.

Barrick, the world's top gold producer, said in its statement on Tuesday that some areas of the mine were still functioning, but the operation had produced almost no gold since the strike began.

The firm said some operations, including blasting and support services, were continuing, but milling was not operational. If its remaining employees failed to show up to work, they would also be fired, it added.

WAGE DISPARITY

Barrick acquired the mine in 1999. It produced 330,000 ounces of gold last year at a total cash cost of $339 an ounce. It had proven and probable reserves of 11.2 million ounces as of the end of last year.  Continued...

 

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