) announced that its joint venture with
) and the government of Mali will suspend mining excavation
activities at the Yatela mine in Mali, effective Sep 30, 2013.
Both IAMGOLD and AngloGold Ashanti hold a 40% stake in the joint
venture -Societe d'Exploration des Mines d'Or de Yatela S.A
- with the rest owned by the government of Mali. The mine
is situated over 600 kilometers north-west of the Malian capital
of Bamako and roughly 25 kilometers north of the Sadiola mine.
The Yatela SA mine project started operations in 1997, the mining
license was issued in 2000 and the first gold poured in 2001. The
initial expected life of the mine was six years, and thus, its
closure was scheduled to occur in 2007. The discovery of
additional economically exploitable deposits extended the life of
the mine and led Yatela SA to defer the closure date several
According to IAMGOLD, rising costs and falling gold prices made
it extremely difficult to extend the life of mine at Yatela.
IAMGOLD acknowledged the contributions of contracted workers and
the employed Malian mine workers of the Yatela mine.
However, the company stated that the mining activities at Yatela
are no longer capable of making a positive contribution to any of
its stakeholders. IAMGOLD also mentioned that Yatela's community
development activities will not be affected with the closure of
mining activities as a new plan is being developed which focuses
on the expansion and marketing of community development and
current socio-economic projects.
With this news, the contractual arrangements with Yatela's mining
contractors (AMS and BME) will end, leading to cancellation of
mine workers' contracts. AngloGold Ashanti as the mine operator
will focus on compliance with all regulations governing the
reduction of staff. While the process of gradual
dismantling of the site is planned to start from Sep 30, 2013,
the processing of heap leach pads and ore already mined will
continue till end-2016.
IAMGOLD currently maintains a Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks Rank
Gold Fields Ltd.
US Energy Corp.
). Both retain a Zacks Rank #2 (Buy).
ANGLOGOLD LTD (AU): Free Stock Analysis
GOLD FIELDS-ADR (GFI): Free Stock Analysis
IAMGOLD CORP (IAG): Free Stock Analysis
US ENERGY CP-WY (USEG): Free Stock Analysis
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