Minerven counting losses after strike - Venezuela

Published: Monday, January 18, 2010 16:33 (GMT -0400)More news from Venezuela

Venezuelan state gold company Minerven is counting its losses after workers went on strike for 10 days earlier this month, company president Luis Herrera told BNamericas.

"If no one is working, there will be losses and we are calculating exactly how much was lost," Herrera said without providing any further details.

As far as BNamericas could find out, Minerven produces an average of 600oz/d, which when multiplied by the 10 days that the strike lasted, results in major losses. At current gold produces, the loss would be some US$7mn.

THE STRIKE

More than 1,200 workers reportedly went on strike to demand that work conditions and safety be improved, the debt with supplier companies be paid off and that Herrera step down because of alleged corruption.

However, Herrera did not confirm this and assured that the protest "was an illegal strike and an agreement was reached so that workers can restart activity."

According to the official, workers only requested that there be no punishment for the strike, which started on January 5, before restarting work.

Minerven, a subsidiary of state heavy industry holding company CVG, is currently carrying out studies in search of new gold mining areas.