Tanzania union, Barrick, meet mediator over mine strike

By George Obulutsa

NAIROBI, Nov 29 (Reuters) - Representatives of Canada's Barrick Gold Corp (ABX.TO) and a Tanzanian union, whose members are on strike at Bulyanhulu gold mine, met a mediator on Thursday to try and resolve a dispute, a Barrick spokesman said.

Workers at Bulyanhulu mine have been on strike since Oct. 25, when the world's top gold producer said about 1,000 of its 1,971 workers walked off their jobs in what it called an illegal strike. The workers say they want better pay and conditions.

Since then, the Tanzania Mines and Construction Workers Union (TAMICO) has sought the help of an arbitrator -- from a Tanzanian labour mediation body -- and requested a court injunction to stop Barrick from new hiring.

"There was a meeting today with the mediator in Bulyanhulu. I'm awaiting feedback," Teweli K. Teweli, Barrick Tanzania's spokesman, told Reuters by phone from Dar es Salaam.

The court's decision on whether to grant the union an injunction is due on Monday. It had been due on Nov. 26, but a lawyer representing TAMICO fell sick.

Teweli clarified that it was not the judge who was ill as previously reported.

Last week, Barrick Tanzania said the mine was 65 percent operational, and that 325 of the workers who had walked off the job had been rehired.

TAMICO went to court on November 20 to seek the injunction.

Miners are asking for more pay, better health care and increased risk allowances.

According to Barrick, production at Bulyanhulu had fallen to 25 percent of capacity at the beginning of the strike.

Barrick has two other working gold mines in Tanzania and is developing a third as well as a nickel mine.

Barrick, the world's largest gold producer, acquired Bulyanhulu mine in 1999. The mine produced 330,000 ounces of gold last year at a total cash cost of $339 per ounce.

It had proven and probable reserves of 11.2 million ounces at Bulyanhulu as of the end of last year.

Barrick's shares were trading at 41.37 Canadian dollars at 1403 GMT, compared with a close of 41.42 dollars at Wednesday's close, and a year-high of 43.93 dollars hit on Nov. 6. (Editing by Peter Blackburn)