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Tanzania court delays ruling on Barrick gold strike


by George ObulutsaReuters
November 28th, 2007

NAIROBI (Reuters) - A Tanzanian court has delayed hearing a case in which a union representing striking workers of Canada's Barrick Gold Corp is seeking to prevent the firm from hiring new workers, a union leader said on Wednesday.

Barrick said about 1,000 of its 1,971 workers walked off the job in its Bulyanhulu gold mine in late October in what it called an illegal strike.

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

The Tanzania Mines and Construction Workers Union (TAMICO) went to court on November 20 to seek an injunction that would prevent Barrick from hiring until the union's grievances were addressed. A decision was due on November 26, but the judge fell ill, forcing an adjournment.

"It has been postponed. The issue is that the judge is sick, so they postponed it till next Monday, I think," said Mbaraka Igangula, chairman of Tanzania Mines and Construction Workers Union (TAMICO).

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

The miners are demanding more pay, better health care and increased risk allowances. The union has also sought the help of an arbitrator.

Igangula said they would be meeting the arbitrator in Kahama in northwest Tanzania on Thursday.

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

It 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.

At the end of 2006, the company had proven and probable gold reserves of 123 million ounces worldwide, according to information on its website.

Barrick's shares were trading at 40.28 Canadian dollars at 1322 GMT, compared with a close of 41.06 dollars on Tuesday close, and a year high of 43.93 dollars hit on November 6.

 

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