Irish labour dispute delays Lundin shipments

Citing the impact of a labour dispute, Lundin Mining (LUN-T, LMC A) said it will be forced to delay some concentrate shipments from its Galmoy lead-zinc mine in Ireland.

The Vancouver company said efforts to arbitrate an end to the dispute has distracted the mine workers, and in turn disrupted the production of concentrates.

As a result, the company said management is working with its customers to reschedule deliveries as it is unable to adhere to the agreed shipping schedule and will be forced to delay some shipments.

“We hope to have the matter resolved shortly as both parties are motivated to do so,” said Stefan Mansson, managing director of Lundin’s Galmoy Mines subsidiary.

The Galmoy Mine is a high grade zinc-lead mine located in Kilkenny County, Ireland. Discovered in 1986, the mine has been in production since 1997. It is a modern underground mine with an annual production rate of approximately 70,000 tonnes per zinc and 19,000 tonnes per annum lead.

Lundin said mine management has been negotiating with the unions since June, 2006 regarding the level of pay increases for 2006 and onwards with the intention of adopting the terms of the National Partnership Agreement signed by the Employers Federation, IBEC, as well as the unions and the Irish government.

Under the terms of the National Partnership Agreement, salaries at the mine would be increased by a further 10.4% over a 27 month period in addition to the previous 28.6% increase over 17 months.

The company said local unions are, however, requesting an additional increase on top of the National Agreement.

As a result, negotiations were handed over to an arbitration process with the Labour Relations Commission in October of 2006, the company said. Two meetings were held with the Commission during late 2006 and the next meeting with the Commission is scheduled to be held on January 16, 2007.

Lundin said management is hopeful that a satisfactory conclusion will be reached at that time.