Mining contractor to lay off 80

Thursday, Dec. 18, 1997 | 4:50 a.m.

Small Mine Development Inc. said it expects to lay off about 80 people by mid February, the Elko Daily Free Press reported.

Newmont's decision was made in the wake of low gold prices, Newmont Vice President and General Manager Tom Enos said.

"These changes are reflective of Newmont Gold Co.'s continuing effort to more effectively control costs by utilizing its own work force," he said.

Gold prices remain low but have been rising slightly this week after reaching lows in the $282-$283 range last week.

SMD owner Ron Guill, of Boise, Idaho, said he notified his workers at Newmont to expect 80 to 82 of them to be laid off Feb. 15, although things could change if other work comes up.

"Newmont has been a wonderful client," Guill said, adding that he understands the company's decision was an economic one.

SMD has had a series of contracts with Newmont since 1993 and employees have been here several years, living in Elko, Carlin and Battle Mountain, Guill said.

"We took Newmont underground," he said.

SMD also is developing an underground mine at Diamond Hill in Montana for Pegasus Gold Co., but there are no slots there for the people working at Newmont, Guill said. His current work force for both projects is 140.

Ninety of them are on the Newmont projects, and Guill said he expects to keep around eight supervisors to help out with an exploration project at Newmont's Rain Mine and to tend to SMD's mining equipment.

Newmont will take over the development and mining at the Carlin Main and Carlin West underground operations north of Carlin from SMD in mid-February and reduce SMD's workload at the Rain Mine south of Carlin at the same time.

Carlin West is the company's newest underground operation, and the project is still in the development stage. Mining at Carlin Main started in July 1995.

SMD is an independent contractor specializing in underground operations. The company also worked on Newmont's Deep Star and Carlin East underground mines until those mines went into active production in 1995. Newmont took over the mining there, too.

"We want to maintain a presence in the area so if gold prices come back, we will be in position," Guill said. "We mine until we're asked to leave. We're just contractors."