DENO GOLD MINING COMPANY MAKES DECISION TO CLOSE DOWN EXPLOSIVE
PRODUCTION WORKSHOP
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.