10 Sep 2007

Cost of PNG Lihir mine strike estimated to be US$12m

3:21 pm on 10 September 2007

The one-week strike at Papua New Guinea's Lihir gold mine is likely to cut its 2007 net profit by 12 million US dollars.

The Post Courier newspaper reports that gold production resumed last Friday, but so far the company was yet to reveal by how much profit has dropped.

But a report by the Zurich-based Credit Suisse Group also warned that along with a fall in income, the move to make Lihir a unionised gold mining operation could see company costs increase.

It says the company would be looking at bridging the gap between its national and expatriate employees