A GOVERNMENT-led process to improve “industrial relations” at the Tongon mine of Randgold Resources was interrupted at the weekend, the group said, adding that employees had gone out on strike.
“Management continues to engage with the authorities and the unions to resolve the situation,” the company said in a press statement today. Shares in Randgold were down just under a percent lower in London where it is valued at £5.12bn.
Randgold said in April that full-year production guidance of 1.35 million ounces to 1.30 million oz would be unaffected by a flare up of industrial action at Tongon mine earlier in the year. However, Tongon was lagging its production forecast of about 290,000 oz for the 2018 financial year as of end-March.
The mine, situated in Ivory Coast, was out of action about a year ago for five days following an illegal sit-in by employees related to demand for ex-gratia payments.
