TSX: IMG NYSE: IAG
TORONTO, Sept. 15, 2013 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") reports that the Société d'Exploration des
Mines d'Or de Yatela S.A, a joint venture between IAMGOLD (40%),
AngloGold Ashanti (40%) and the government of Mali (20%), has decided
to suspend mining excavation activities at the Yatela Mine in Mali
effective September 30, 2013. This decision reflects a combination of
factors, including miner safety in the pit, the drop in the spot price
of gold and the reduction in profit margin. Although a process of
gradual dismantling of the site is planned for September 30, 2013,
processing of heap leach pads and ore already mined will continue until
the end of 2016, since the end of the mining activities does not yet
mean the end of the mine. The Yatela mine is situated over 600
kilometres north-west of the Malian capital of Bamako and about 25
kilometres north of the Sadiola mine.
This decision will result in the conclusion of contractual arrangements
with Yatela's mining contractors (AMS & BME), who will cancel the mine
workers' contracts. AngloGold Ashanti, as the mine operator, will
focus on compliance with all regulations governing the reduction of
staff. With regard to the employees of Yatela SA, negotiations will
continue with the labour union on any closure related issues.
Yatela's community development activities will not be affected by the
conclusion of mining activities. A new plan for social development
focusing on the expansion and marketing of community development and
current socio-economic projects is being developed.
All discussions relating to Yatela closure plan will continue under the
supervision of the Yatela National Closure Commission until final
agreement. The management of Yatela SA will engage on comprehensive
communication with all stakeholders and keep the National Closure
Commission informed throughout this process.
The Yatela SA Mine Project started in 1997. The mining license was
issued in 2000 and the first gold poured in 2001. The initial planned
life of mine was six years, and thus its closure was planned for 2007.
Following various geological studies conducted by the company within
the permit area, other economically exploitable deposits were
discovered, and this extended the life of the mine and led Yatela SA to
defer the closure date several times.
Gord Stothart, Executive Vice President and Chief Operating Officer at
IAMGOLD, commented, "It has been extraordinarily difficult to extend
the life of mine at Yatela given this environment of rising costs and
falling gold prices. We recognize the contribution of the contracted
and employed Malian mine workers to the Yatela mine, however, we and
our partners believe that this is the best decision at this time as the
mining activities at Yatela are no longer capable of making a positive
contribution to any of our stakeholders. We will now be able to turn
more of our attention to the mines and projects which we are more
confident can make a positive contribution."
"The recent past has been challenging for everyone in Mali, but we are
pleased to see that peace and order have returned and a democratic
government restored," added President and CEO of IAMGOLD, Steve
Letwin. "We thank the Malian government for their openness and support
during the process of getting our joint operations in order. While
circumstances have led to this decision to wind down the mining
operations at Yatela, we are hopeful that a longer-term future can be
forged with our partners at the nearby Sadiola mine. We are
appreciative of the government's efforts to provide support for the
transformation of Sadiola to process sulphide ore and help us find
solutions to keep us engaged in mining within Mali."
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier mining company with six operating gold mines (including
current joint ventures) on three continents and one of the world's top
three niobium mines. A solid base of strategic assets in Canada, South
America and Africa is complimented by development and exploration
projects and continued assessment of accretive acquisition
opportunities. IAMGOLD is in a strong financial position with
extensive management and operational expertise.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
All information included in this news release, including any information
as to the Company's future financial or operating performance or
otherwise information as to expected or planned future events, and
other statements that express management's expectations or estimates of
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historical fact, constitute forward looking information or
forward-looking statements and are based on expectations, plans,
estimates and projections as of the date of this news release.
Forward-looking statements are provided for the purpose of providing
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to the future. Forward-looking statements in this news release are
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while considered reasonable by management, are inherently subject to
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factors that may cause the actual financial results, performance or
achievements of IAMGOLD or actual future events to be materially
different from the Company's estimated future results, performance or
achievements or expected or planned future events expressed or implied
by those forward-looking statements, and the forward-looking statements
are not guarantees of future performance or the happening of expected
or planned future events. For a more comprehensive discussion of the
risks faced by the Company, and which may cause the actual financial
results, performance or achievements of IAMGOLD to be materially
different from the company's estimated future results, performance or
achievements expressed or implied by forward-looking information or
forward-looking statements, please refer to the Company's latest Annual
Information Form, filed with Canadian securities regulatory authorities
at www.sedar.com, and filed under Form 40-F with the United States Securities Exchange
Commission at www.sec.gov/edgar.html. The Company disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new information,
future events or otherwise except as required by applicable law.
Please note:
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SOURCE IAMGOLD Corporation