Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Austral Gold’s (TSXV:AGLD) Chilean miners at its Guanaco and Amancaya mines went on strike on Monday, April 11 
  • The miners are represented by three separate unions 
  • Two unions representing mining workers agreed to go on strike, to protest the new collective labour agreement that would govern conditions on the mine for the next three years 
  • The third union, who is responsible for the mine’s supervisors, agreed to terms during the first quarter 
  • Austral Gold (AGLD) is holding steady at C$0.14 per share, with a market cap of $80 million

Austral Gold (TSXV:AGLD) has revealed that miners at its Chilean sites of Guanaco and Amancaya have gone on strike. 

The workers are protesting after seven days of mediation failed to alleviate union concerns regarding the new collective labour agreement for the Guanaco and Amancaya mines. The new labour agreement would be binding at both sites for the next three years. 

These workers are members of two separate unions that are responsible for the mine workers on both sites. 

While Austral has not commented on where the sticking point is in negotiations, the company pointed to a one-time cash payment for each unionized employee known as an end-of-conflict bonus. 

However, the union governing the mine’s supervisors has agreed to the terms at some point in the first quarter.

Austral filed their compensation proposal with the Chilean Government Labour Authority last week as part of the formal negotiation process. The two unions at the Guanaco and Amancaya mines did not accept this proposal and walked off the job on Monday. 

The company’s CEO, Stabro Kasaneva, said the company and the union’s representatives are making their best efforts to reach an agreement. 

“We believe that the company proposal is fair and in line with our size and current financial situation. 

“During the strike, all activities will be temporarily suspended except those essential activities regarding security and environment,” he added. 

The strike is a big blow to Austral, which said the Guanaco and Amancaya projects are its flagship sites.

The Guanaco and Amancaya mines just reported their first quarter production, bringing in 17,159 ounces of gold last quarter.  

Austral Gold (AGLD) is steady at C$0.14 per share, as of 2:52pm EDT.

More From The Market Herald

" Top 5 Stories of the Week: Empower Clinics (CSE:CBDT), Eat Well Group (CSE:EWG), Tocvan Ventures (CSE:TOC), Mullen Group (TSX:MTL), EasTower Wireless (TSXV:ESTW)

With inflation reaching 7.7 per cent in May, the highest in 40 years, recessionary fears are running rampant.

" @ the Bell: Summer blues for TSX, Wall Street sees worst half since 1970

On the last day before the Canada Day long weekend, the TSX finished lower by triple digits in broad-based decline as commodity prices

" Top 5 Stories of the Week: Baselode Energy Corp. (TSXV:FIND), Green River Gold (CSE:CCR), Mantaro Precious Metals (TSXV:MNTR), Granite Creek Copper (TSXV:GCX), Tocvan Ventures (CSE:TOC)

As the first half of 2022 draws to an end, the news about inflation and the stock market performance has not given investors

" This Company is Discovering More Gold in Ecuador, with its Copper Story Just Starting

While gold production in countries such as Peru, — which is South America’s leading gold producer — Brazil, Colombia, Bolivia and Argentina dominate