IAMGOLD restarts Rosebel mine in Suriname

Canada’s IAMGOLD Corp. (TSX IMG), (NYSE: IAG) has resumed operations at its Rosebel gold mine in Suriname, which was shut in June after union leaders asked members to down tools in response to workers testing positive for coronavirus.

The Toronto-based miner said operations resumed on Friday after receiving confirmation and advice from the country’s covid-19 outbreak management team that it was safe to reopen the mine, though with fewer staff.

IAMGOLD said the decision was made in conjunction with the Rosebel Goldmines Employees Organization, which represents mine workers.

New sanitary protocols in place include screening, distancing measures and screening workers’ temperatures.

“With Rosebel back online, IAMGOLD is in position to benefit from current strong gold prices, as over 30% of its gold production comes from this asset,” BMO analyst Jackie Przybylowski said in a note to investors.

Rosebel is located in the mineral rich Brokopondo district, about 85 km south of the capital city of Paramaribo.

The Canadian company owns 95% of the gold mine and the government of Suriname holds the remaining 5%. 

Uncertain outlook

The miner warned that ongoing uncertainty around the state of the global pandemic and the impact it may have on the gold market may impact its operating activities and financial results this year.

IAMGOLD cut 2020 production guidance in May from 700,000-760,000 ounces to 685,000-740,000 ounces of gold.

The company is scheduled to release June quarter financial results after market close on August 5.