Chibougamau settlement imminent

An agreement to end a 6-month lockout at Westminer Canada, Chibougamau, Que., copper-gold mines is likely to be signed within the next week, according to Tony Owens, vice-president of operations. He said workers at the Portage mine are already back on the job while those at the Copper Rand mine will return to work as soon as repairs to the mine’s headframe are complete.

“The employees are progressively going back to work,” he said. “We’re just waiting to get all the parties together in one spot to sign the agreement.”

A lockout of the 300-plus union members has been in effect since May 14.

Owens said use of contract workers at the 30-year-old mines was one of the major issues tossed back and forth during the recent negotiations. A previous agreement allowed management to use contractors only for shaft sinking. Under the new agreement, management has won the right to use contractors for ramp development as well.

He said a wage settlement includes a cost-of-living allowance as well as annual pay increases of 64 cents per hour in the first year and 40 cents per hour in each of the second and third years. All workers will now be covered by a productivity bonus plan.

Meanwhile,merger discussions between Westminer subsidiary Seabright Explorations (TSE) and privately owned Corner Bay Resources continue. If the proposed merger proves successful, Seabright plans to move underground on Corner Bay’s high-grade copper deposit near Chibougamau. The property contains preliminary reserves of 1.39 million tonnes grading 4.4% copper. But as Seabrex (Seabright Explorations) proceeds with exploration plans, lawyers for the former directors of Seabright are on their way to Australia to examine evidence for a trial scheduled for later next year or 1992.

In 1988, Westminer launched a $60-million lawsuit against the former Seabright directors, alleging that they failed to disclose advice concerning the viability of the Beaver Dam property in Nova Scotia before selling to Westminer.

Seabright’s former directors have now launched a countersuit, claiming Westminer Canada denied them the insurance coverage that would have allowed them to respond to the lawsuit.