Strike at Rio Tinto’s Rossing uranium mine

Uranium production at Rio Tinto‘s (RTP-N, RIO-L) Rossing mine in Namibia, could take a hit, as workers there began a strike on Oct. 23.

In a prepared statement, Rehabeam Hoveka, general manager for corporate services at Rossing, labeled the strike illegal and said it could affect production targets in the open pit mine.

Hoveka also said management is in ongoing negotiations with the Mine Workers Union of Nambia, and that direct negotiations with the workers, who are mainly the equipment operators in the massive open pit, would occur when and if they returned to work.

The miners are looking for a better wages.

Rossing supplies 7.7% of the world uranium supply, and has been in production since 1976 with a current mine life that will take it into 2016.

The mine output for this year was slated to be 3,500 tonnes of uranium oxide. That’s down slightly from last years output of 3,700 tonnes. Rossing is targeting a full production of 4,000 tonnes by 2007.

Rio Tinto holds roughly 67% of the project. The next largest stake holder is the Iranian government with a 15% stake.

In New York on Oct. 24, Rio’s shares were off 26 to US$213.95 on roughly 300,000 shares traded.