TORONTO (miningweekly.com) – Damages to equipment and site infrastructure, sustained during a violent protest by local communities at Canadian project developer True Gold's Karma project, in Burkina Faso, in January, amounted to about $6.1-million.

The Vancouver-based company on Monday said it had formalised a technical shutdown of the project, as prescribed under applicable Burkina Faso labour laws, which would enable it to preserve capital in the near term and resume construction quickly and efficiently, while still providing staff with a source of income.

True Gold said it was expecting about $2-million in compensation through various insurance policies. It was working with its insurance providers to finalise the quantum and coverage.

True Gold in January temporarily suspended construction activities at Karma after several hundred members from two surrounding communities, Ramatoulaye and Namissiguima, marched on the mine, threatened employees and damaged equipment.

Despite reassurances from the company, locals were concerned about potential damage to a mosque, 1.18 km from the edge of the Rambo pit, as well as other buildings in the neighbouring town of Ramatoulaye. They were also concerned about the negative effects the pit could have on dust, noise and groundwater quality in the community.

The company was engaged in productive and ongoing discussions with diverse working groups that included government leaders, traditional authorities, religious groups and local businesses. The groups were also taking an active role in dealing with a small fringe element largely responsible for the unrest in January, True Gold said.

The Burkina Faso Minister of Mines Colonel Boubacar Ba hosted a news conference in February to reassure the local community that mine construction and operations would not impact the Ramatoulaye mosque. Upon the request of local leaders, the Minister also delivered a letter to the Sheik of Ramatoulaye giving the same assurance.

Working with the $131.5-million Karma project’s engineering, procurement and construction management contractor SENET, True Gold said it expected to optimise the project plan and be in a position to pour the first gold within ten months of construction activities resuming.