The gold miner negotiated with Union Nationale des Travailleurs du Mali (UNTM) to sign a conciliation agreement that cancelled the strike.

As a result, a compromise between Resolute’s subsidiary company, the Société des Mines de Syama S.A. (SOMISY), and the UNTM was achieved.

This involved the introduction of a commission to evaluate the support measures the SOMISY has argued are required in response to COVID-19 and the economic conditions of the workers at Syama.

Operations at Syama have now returned to normal, and “all efforts will be made to ensure a stable industrial relations platform is maintained for the rest of 2020 and beyond”, according to Resolute.

“While no guarantee can be provided that the UNTM will not reinstate future strike action, all parties have agreed to the framework of a win- win partnership,” Resolute stated.

The company has reintroduced its 2020 production guidance, but expects gold production to be reduced in the September 2020 quarter by around 15,000 ounces of gold as a result of the industrial relations dispute and strike actions.

Mali is currently facing transitional government arrangements, which are expected to be in place for up to 18 months to plan for new democratic elections.

As a result, former Malian Minister of Defence and retired colonel Mr. Bah N’DAW has been appointed as interim President of Mali, and stated that the transition period ‘will not dispute any international undertaking by Mali, nor the agreements signed by the government’.

According to Resolute, the impact of the new appointment on sanctions by the Economic Community of West African States (ECOWAS) is currently unknown.

Resolute’s total production for 2020 is expected to reach between 400,000 ounces and 430,000 ounces of gold at an all-in sustaining cost of between $US980 ($1393) and $US1080 ($1535) per ounce.