Veladero strike ends; formal dialogue with trade union estabished

VANCOUVER (miningweekly.com) – Workers belonging to the AOMA union at the Veladero mine, in San Juan province, Argentina, restarted work on Monday afternoon after downing tools early on Sunday.

Barrick did not elaborate on the union’s issues of concern, but said it is in dialogue with union leadership to “seek a timely resolution to the situation”.

Operations have been halted at Veladero following three cyanide spills in less than two years. Leaching at Veladero has been restricted since March 29, after a pipe carrying processing solution at the mine's heap leach facility failed.

Barrick expects to resume normal leaching activities at Veladero in the second half of June, subject to the San Juan regulatory and judicial authorities’ approval.

Construction works in the heap leach valley that are necessary to resume full operations at Veladero were not affected by the work stoppage, and Barrick affirmed there is no change to the anticipated timeline to resume normal leaching activities.

News agency Reuters reported earlier this month that Barrick has failed to complete improvements to the Veladero mine that could have prevented the third cyanide concentration spill in 18 months, which could lead to possible sanctions against the miner. Barrick appears to have missed deadlines on three orders from local authorities, including replacing pipes, before the March 28 spill, according to Reuters.

Argentina’s San Juan provincial government has approved a detailed plan that includes, among other aspects, the complete re-engineering of the operational and environmental processes and standards of the Veladero operation; a social and community development programme; the redesign of a permanent, transparent and open dialogue process with the authorities and local communities; an investment plan and development of the remaining assets in the province; and subjecting them to a comprehensive audit mechanism by recognised national and international organisations and experts.

Barrick on April 6 announced a new partnership with China-based Shandong Gold Mining, that will see it sell a 50% interest in Veladero for $960-million.