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[ferro-alloys.com]Australia’s Resolute Mining (ASX, LON: RSG) has restored its production guidance for 2020 after avoiding a 10-day strike by unionized workers at its Syama gold mine in Mali.

The company expects to produce between 400,000 and 430,000 ounces of gold at all-in sustaining costs (AISC) of $980 per ounce. Part of the January-issued guidance of 500,000 ounces had already been affected by measures related to containing the spread of covid-19.

Stoppages at Syama during the third quarter delayed the production of a further 15,000 ounces of gold during the period, the company said.

Resolute noted its local subsidiary, Société des Mines de Syama (SOMISY), and the mine’s union had inked a “conciliation agreement” that will prevent further labour action at the mine.

Under the deal, the parties will set a commission in charge evaluating and supporting measures that SOMISY believes are required in response to the pandemic and prevailing economic conditions.

Sanctions impact

Resolute said the potential impact of sanctions imposed by the Economic Community of West African States (ECOWAS) following a military coup in Mali also weighed on its decision to lower annual guidance.

The trade restrictions came after a period of civil disruption and violence that ended up with the resignation in August of Mali president, Ibrahim Boubacar Keita.

ECOWAS said last week it would uphold sanctions on Mali until it appoints a civilian prime minister within 18 months.

Mali’s military government endorsed on Friday a plan to restore civilian rule. It appointed a committee that chose 70-year-old retired Colonel and former Defence Minister Bah Ndaw as interim president.

(Mining.com)

• [Editor:王可]