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UPDATE 1-Workers strike at Centerra's Mongolia mine

Tue May 26, 2009 5:14pm EDT

Stocks

   

TORONTO, May 26 (Reuters) - Centerra Gold (CG.TO) said on Tuesday that unionized workers at its Boroo gold mine in Mongolia have walked off the job demanding higher wages, prompting the company to suspend operations at the mine.

Centerra, which is partly owned by Canadian uranium producer Cameco Corp (CCO.TO), said it believed the work stoppage is illegal, as it said there is a collective agreement in place.

"The company is in discussion with the work force to resolve the issues," the statement from Centerra, which also operates the Kumtor mine in Kyrgyzstan, said.

Company officials were not available for comment.

The Boroo mine produced 40,183 ounces of gold in the first quarter of 2009, and is expected to produce between 160,000 and 170,000 ounces this year.

Centerra's shares rose 2.1 percent to C$6.85 on the Toronto Stock Exchange on Tuesday. The company released news of the strike after markets closed.

($1=$1.12 Canadian) (Reporting by Cameron French; editing by Peter Galloway)



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