Red Lake strike ends

Talks between Goldcorp (G-T) and the United Steelworkers of America, which represents about 160 workers at the Red Lake mine in northern Ontario, have finally resulted in an agreement, ending the longest strike in Canadian mining history.

The union negotiated the agreement after concluding that Goldcorp was prepared to allow the strike to continue indefinitely. The union will no longer represent the 45 miners, who will continue working at the underground operation. The bulk of the workforce will be given severance packages at nearly quadruple the mandated rates, plus additional monies and assistance for those near retirement or receiving disability payments.

The union stated that “while it is the best thing [we] could do for the strikers under the circumstances, it is a deal made with a company that was never prepared to come to an agreement with either reasonable terms or a fair return-to-work process.”

Goldcorp President Robert McEwan thanked all the parties for working hard to reach a settlement. “We are anxious to put the past behind us and focus on the final stage of development at our new mine.”

Prior to the strike, the mine had operated steadily for 48 years, producing more than 3 million oz. gold. The new mine plan is focused on the recently discovered High Grade zone, where underground delineation drilling has boosted reserves by 17%.

Reserves in the High Grade zone now stand at 1.5 million tonnes grading 46.97 grams gold per tonne, according to Watts Griffis & McOuat. The new calculation was based on a gold price of US$300 per oz., 22% external dilution and the cutting of higher grades to 10, 5 or 2 oz. (a historical practice in this section of the Red Lake camp). Also, unlike the estimate of December 1998, the new one contains material in the proven category — 21% of the total contained ounces; the remainder is classified as probable.