DENO GOLD MINING COMPANY MAKES DECISION TO CLOSE DOWN
EXPLOSIVE PRODUCTION WORKSHOP
22-03-2008 22:00:00 | Armenia | Economy
YEREVAN, MARCH 22, NOYAN TAPAN. Deno Gold Mining Company
(former Kapan ore mining and processing enterprise), which is
95% owned by Dundee Precious Metals company (Canada), has
launched structural reforms, while continuing the production
modernization process. Structural reforms will be implemented in
2008 with the aim of bringing the mines of Kapan and the
operation of Deno Gold Mining Company into line with highest
international standards. During the program's implementation,
the company intends to invest several dozen million dollars in
Kapan and nearby reagions. To recap, the company has already
made investments of 30 million dollars.
The president and owner of Dundee Precious Metals Company
Jonathan Goodman said during his visit to Armenia in November
2007 that the total amount of investments may reach 300 million
dollars if the company establishes the potential of the mines
licensed for exploration.
The examination of the workshop for production of
explosives was the first step of the company's modernization and
investment growth process. It was found that the conditions of
the workshop are not in line with international standards and
pose a danger to safety and life of employees.
"As a socially responsible company being aware of its
obligation to ensure a healthy and safe working environment for
employees, the company made a decision to close down the
workshop and henceforth to use safer and more economically
accessible production," director general of the Kapan mine
Robert Faleta said.
NT was informed from the company's office that all 28
employees of the explosive production workshop were notified of
this decision in envisaged order. The company guarantees that
they will receive compensation and allowances stipulated by the
RA labor legislation. The company officially announced that it
will do everything possible to provide these employees with jobs
at Deno Gold Mining. This problem is now being discussed with
the workshop employees.
According to NT correspondent, 28 employees of the workshop
staged a protest outside Kapan mayor's office on the evening of
March 20. They said that without any warning and sending a
notification beforehand, R. Faleta announced that from May 1 the
workshop will not operate and the employees will be dismissed.