3rd Nov 2015 14:24
LONDON (Alliance News) - First Quantum Minerals Ltd Tuesday said workers at the Cayeli mine on the Black Sea coast of north-eastern Turkey have gone on strike after the company failed to secure a deal with the workers' unions.
The company's wholly owned subsidiary, Cayeli Bakir Isletmeleri AS, and the union that represents the workers at the mine have failed to reach an agreement, which sparked strike action from the workers last Friday.
First Quantum did not specify what the dispute between the subsidiary and the union relates to, however some local media reports in Turkey suggest the dispute is over pay.
Daily Sabah, a nationwide publication and subsidiary of Turkish conglomerate Calik Holding AS, reported 320 workers went on strike after "the company refused to grant an increase in wages following lengthy negotiations regarding a collective labour agreement," it said.
It also reported that Maden-IS is the union representing workers in the discussions.
http://www.dailysabah.com/nation/2015/10/31/strike-begins-at-turkeys-largest-copper-mine
The company said activity at the mine site will be limited to the areas of environment and safety, mine dewatering, and underground rehabilitation.
"The company remains open to reaching an agreement with the union within the parameters of the company's cost constraints and considering the prevailing base metals market," the company added.
The Cayeli mine restarted production of copper and zinc concentrate in the fourth quarter of 2013 after producing its first concentrate back in 1994. According to First Quantum, the mine is the largest underground base-metals mine in Turkey and has the capacity to produce up to 1.2 million tonnes of concentrate per year, but only has a current mine life extending to 2019.
Earlier in October, First Quantum revised down its copper guidance for the full year to 385,000 to 410,000 tonnes from its original 410,000 to 440,000 tonne guidance after the ramp-up of its Sentinel mine was slower than first anticipated.
First Quantum shares were up 0.8% to 350.75 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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