Search Site

news-releases-details

IAMGOLD Reports Work Stoppages at its Joint Venture Operations in Mali

Feb 12, 2014

TSX: IMG    NYSE: IAG

TORONTO, Feb. 12, 2014 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") announced that effective February 10, 2014 a minority of employees at the Company's joint venture Sadiola and Yatela mines in Mali embarked on a strike over the issue of redundancy pay packages. At this stage, production at both mines is proceeding as normal.

Oumar Toguyeni, IAMGOLD's Regional Vice President, West Africa said, "At the Sadiola mine production was halted at the FE3 pit, and mining is now focused on the FE4 and Tambali pits to extract higher-grade oxide ore, which is better suited to the existing plant.  In September 2013, at the neighbouring Yatela mine, the sharp decline in the gold price, coupled with safety considerations, led to the suspension of mining and discontinuation of the mining contracts."

IAMGOLD's joint venture partner at these two mines, AngloGold Ashanti Limited oversees the local operations and remains in dialogue with employees and their representatives, including the National Section of Mines and Industries (SECNAMI), known locally as SECNAMI, in order to find a solution suitable to all stakeholders.

The more focused scope of operation at Sadiola was necessitated by the lower bullion price and is aimed at improving the mine's viability. Unfortunately, however, it will affect employees of the joint venture, as well as those employed by the mining contractor, LTA Mali.

The joint venture partners will also continue to engage all stakeholders; a Life-of-Mine Forum has been established to continuously inform employees of both mines, their respective unions and representatives from our host communities, on developments relating to the mines' respective futures.

About Sadiola and Yatela Gold Mines

Sadiola, the larger of the two operations in Mali, is a joint venture operation by AngloGold Ashanti (41%), IAMGOLD (41%) and the government of Mali (18%). The mine began operating in 1996 and is located in southwestern Mali, near the Senegal border and 77 kilometres southwest of the regional capital Kayes.

Yatela is 80% owned by the Sadiola Exploration Company Limited, a joint venture between AngloGold Ashanti and IAMGOLD, giving each a 40% stake. The balance of 20% is owned by the Government of Mali. Yatela is situated in southwestern Mali, some 25 kilometres north of Sadiola and approximately 50 kilometres south-southwest of the regional capital Kayes.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

All information included in this news release, including any information as to the Company's future financial or operating performance, and other statements that express management's expectations or estimates of future performance, other than statements of historical fact, constitute forward looking information or forward-looking statements and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements contained in this news release include, but are not limited to, statements with respect to: the Company's guidance for production, total cash costs, all-in sustaining costs, depreciation expense, effective tax rate, niobium production and operating margin, capital expenditures, operations outlook, cost management initiatives, development and expansion projects, exploration, the future price of gold, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing and amount of estimated future production, costs of production,  permitting timelines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Forward-looking statements are generally identifiable by, but are not limited to the, use of the words "may", "will", "should", "continue", "expect" or "anticipate" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader not to place any reliance whatsoever on forward-looking information or forward-looking statements. Forward- looking information and forward-looking statements involve risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of IAMGOLD to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements, and the forward-looking statements are not guarantees of future performance. Risks and unknowns inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects, and the future prices for the relevant minerals. The capital expenditures and time required to develop new mines or other projects are considerable, and changes in costs or construction schedules can affect project economics. Actual costs and economic returns may differ materially from IAMGOLD's estimates or IAMGOLD could fail to obtain the governmental approvals necessary for the operation of a project; in either case, the project may not proceed, either on its original timing or at all.

For a more comprehensive discussion of the risks faced by the Company, and which may cause the actual financial results, performance or achievements of IAMGOLD to be materially different from the company's estimated future results, performance or achievements expressed or implied by forward-looking information or forward-looking statements, please refer to the Company's latest Annual Information Form, filed with Canadian securities regulatory authorities at www.sedar.com, and filed under Form 40-F with the United States Securities Exchange Commission at www.sec.gov/edgar.shtml. The risks described in the Annual Information Form (filed and viewable on www.sedar.com and www.sec.gov/edgar.shtml, and available upon request from the Company) are hereby incorporated by reference into this news release.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as required by applicable law.

About IAMGOLD

IAMGOLD (www.iamgold.com) is a mid-tier mining company with six operating gold mines (including current joint ventures) on three continents and one of the world's top three niobium mines. A solid base of strategic assets in Canada, South America and Africa is complemented by development and exploration projects and continued assessment of accretive acquisition opportunities.  IAMGOLD is in a strong financial position with extensive management and operational expertise.

Please note:
This entire news release may be accessed via fax, e-mail, IAMGOLD's website at www.iamgold.com and through CNW Group's website at www.newswire.ca. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.

Si vous désirez obtenir la version française de ce communiqué, veuillez consulter le http://www.iamgold.com/French/Home/default.aspx.

SOURCE IAMGOLD Corporation

Bob Tait, VP Investor Relations, IAMGOLD Corporation
Tel: (416) 360-4743  Mobile: (647) 403-5520

Laura Young, Director Investor Relations, IAMGOLD Corporation
Tel: (416) 933-4952 Mobile: (416) 670-3815

Penelope Talbot-Kelly, Analyst Investor Relations, IAMGOLD Corporation
Tel: (416) 933-4738  Mobile (647) 280-0519

Toll-free: 1-888-464-9999  info@iamgold.com

Back

News Alerts

Email Address *