RAPAPORT...Unionized workers at the Ekati Diamond Mine voted to ratify a new four-year collective agreement with majority owner BHP Billiton. Union leaders stated that the solidarity maintained by their 400 members throughout the three-month strike in 2006 strengthened negotiations for this second contract. The new agreement was reached without another labor dispute.
The four-year agreement, which was negotiated by the Public Service Alliance of Canada (PSAC) and the Union of Northern Workers, provides for pay increases tied to the cost-of-living plus, a performance-based incentive program, enhanced job security and a new “Alternate Dispute Resolution” process designed to improve labor relations.
Jean-Francois Des Lauriers, regional executive vice president of PSAC North, called the agreement a step forward for employees who stuck together through and after a difficult strike. He commented that his organization’s members understand that a contract is a “work in progress,” and he pledged that the union will work with its members to ensure that the agreement’s terms are followed.
Todd Parsons, president of the Union of Northern Workers, one of PSAC’s components, remarked that he hopes this new agreement is the next step to a better working environment for members employed at BHP. The ratification vote was counted on December 14 at the Ekati Mine in the Union’s new on-site office.
Ekati is Canada’s first diamond mine, producing 6 percent of the world’s diamond supply by value, or 4 percent by weight, and yielding 3 to 5 million carats annually. It is located nearly 200 miles northeast of Yellowknife and 125 miles south of the Arctic Circle.
Additional reporting © 2007 Canada Newswire Ltd. and Dialog NewsEdge.Sierra Leone Seeks Infrastructure Investment
Foreign companies seeking to extract precious minerals from Sierra Leone will have to invest in the country’s infrastructure first.
Alhaji Abubakarr Jalloh, Sierra Leone’s minister of mineral resources, told reporters that he and his colleagues were trying to enable mines to serve as the basis for infrastructure development.
Jalloh stated that in the interest of mining bauxite, iron ore and rutile, the government wanted companies to create a plan for a massive harbor that can accommodate big ships. He also stressed the need for a railway system and a future network. Jalloh, a professional geologist, was appointed minister of mineral resources in October by
President Ernest Bai Koroma. The new government has spurred renewed interest among foreign firms in investing in Sierra Leone’s mineral sector. The country is rich in rutile, bauxite and diamonds in particular.
Government officials plan to reveal their new mining strategy in early 2008. Many fear that the strategy may impose more strenuous conditions, including higher taxes, according to Reuters.
Jalloh added that he and his colleagues would assess the situation and modify accordingly for the good of Sierra Leone. Among the improvements envisaged by Jalloh are the reconstruction of dilapidated roads and railways that connect Freetown, the capital, to bauxite mines in the Port Loko and Kambia districts or iron ore deposits in the north.
BHP Starts Production at Koala Underground
BHP Billiton began production at its Koala Underground Project at the Ekati mine in Canada, company spokespersons announced. Graham Kerr, president of the diamonds and specialty products customer sector, explained that the Koala underground mine represents a very important part of Ekati’s future. He stated that the completion of mining preparations four months ahead of schedule, within budget and with an excellent safety record, illustrates the quality of the team devoted to the project.
The inaugural blast took place on October 4, five weeks ahead of schedule. The main conveyor was commissioned on December 9, four months ahead of schedule, marking the official start of Koala’s underground ore production.
The company expects to ramp up to full production of 3,300 tons per day at Koala by mid-2009. Spokespersons forecast that the mine will deliver 9.8 million carats over its 11-year production life. BHP invested $220 million in the project upon approval in June 2006.
Article from the Rapaport Magazine - January 2008. To subscribe click here.