UPDATE 1-Canada's Iamgold says workers go on strike at its Suriname mine

Wed Dec 2, 2015 5:29pm EST
 
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(Adds details on Rosebel costs, production outlook)

Dec 2 (Reuters) - Workers at Iamgold Corp's Rosebel gold mine in Suriname have gone on strike over the company laying off about 10 percent of the mine's employees, Iamgold said on Wednesday.

The mid-sized Canadian-based miner said Rosebel had followed the process required by law for the lay-offs, offering a fair severance package, which more than 50 percent of affected employees have accepted.

Iamgold announced the lay offs in October as part of efforts to reduce costs at Rosebel.

In the first nine months of 2015 Rosebel produced 217,000 ounces of gold on an attributable basis at an all-in sustaining cost of $1,082 per ounce. The gold price was last at $1,053.

Iamgold said it still expects Rosebel to produce between 290,000 and 300,000 ounces of gold this year but this could be re-assessed depending on the length of the strike. (Reporting by Nicole Mordant in Vancouver; Editing by Chris Reese and Andrew Hay)