Resolute Mining has withdrawn its full-year production and cost guidance after being notified of a possible worker strike at the Syama gold mine in Mali, West Africa.
The company received a notice from the Union Nationale des Travailleurs du Mali SOMISY-SA, warning that workers would strike if demands were not met.
Resolute stated the the primary demand was to restore Syama workers who were stood down on full pay due to COVID-19 health and safety protocols.
The company had previously limited the travel of non-essential workers from outside the surrounding region of Syama, to prevent COVID-19 infections.
“Resolute has informed the Union that the strike notice is irresponsible, opportunistic and represents a breach of the commitments made in the Syama workforce stability agreement,” Resolute stated in an ASX announcement.
Resolute added that it was considering how it would respond to the strike notice and had urged the union to support appropriate actions to continue safe operations at Syama.
The company has an 80 per cent interest in the Syama mine, with the Government of Mali holding the remaining 20 per cent stake.
Syama features an automated underground mining system and is one of the world’s most technically advanced underground gold mines, according to the company.
Resolute produced 121,237 ounces of gold at Syama in the first half of 2020 against the site’s targeted production of 300,000 ounces of gold per year.
The company produced 243,058 ounces of gold at Syama in 2019.