Burkina mine halted as Avocet awaits verdict on gold seizure

OUAGADOUGOU, Nov 3 (Reuters) - One of Burkina Faso's largest gold mines, already halted after bailiffs acting on behalf of ex-workers seized some of its gold early last month, will be shut for at least four more days, its London-based owner said.

Operations at Avocet Mining LPC's Inata Mine have been halted since Oct (Shenzhen: 000069.SZ - news) . 27 after the bailiffs seized 1,400 ounces of gold at Ouagadougou airport, the company said.

The mine will be shut for at least four more days as a court rules on a dispute with former employees, Avocet's managing director for Burkina Faso said late on Wednesday.

Over 300 workers were laid off after a strike in 2014 and claim 2 billion CFA Francs ($3.3 million) in unpaid benefits, according to Avocet. Workers' representatives said the gold was seized in retaliation for lost pay.

Avocet has challenged the legality of the seizure and a court is due to deliver its verdict on Nov. 7.

With (Other OTC: WWTH - news) the loss of the shipment, the company has been unable to pay for the running costs of the mine, managing director Saidou Ide told reporters on Wednesday.

"From the moment the gold was seized we were no longer able to function," Ide said, adding that the company has been in financial difficulty for three years due to high production costs and low gold prices.

The suspension of activities has caused the "quasi-totality" of the mine's remaining 629 employees to be temporarily laid off, he said.

Gold (Other OTC: GDCWF - news) is Burkina Faso's main export, accounting for roughly 20 percent of gross domestic product (GDP). The mine, in which the government has a 10 percent stake, produced 74,755 ounces of gold last year.

Avocet also holds several exploration licences in Burkina Faso as well as the Tri-K development project in Guinea. ($1 = 601.1400 CFA francs) (Reporting by Mathieu Bonkoungou; Writing by Nellie Peyton; Editing by Ruth Pitchford)