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Business Reporter
MIMOSA Mining Company has announced plans to cut 100 jobs at its Zvishavane mine in response to falling global platinum prices.
Mimosa executive chairman Mr Winston Chitando said the retrenchments would be on a voluntary basis. Last week when word started filtering that there would be job losses at the mine, workers threatened to embark on “Marikana” style demonstration and involve their families and other residents, if the management went ahead with the planned retrenchment.
In a statement, Mr Chitando said volatile prices of platinum group metals had forced the company to review its cost.
“With the volatility in the prices of platinum group metal and an upward trend in the industry cost base, Mimosa Mining Company has been focusing on optimising its own cost base.
One of the initiatives under this process has been the labour optimisation exercise which has been running for the past years. This exercise among other things involves the multi skilling and multi tasking of various skills and positions. This has culminated in the need to embark on a voluntary retrenchment exercise for 100 people,” he said.
Mr Chitando said the company would soon engage stakeholders on full details of retrenchment packages.
“The company remains committed to the growth of its mining activities in Zimbabwe, building sustainable business solutions and fostering mutually beneficial relationships with its stakeholders,” said Mr Chitando.
Mimosa Mining Company employs 1 670 workers and produces 106 000 ounces of platinum per year.
The price of platinum group metals has been on a downward trend since the beginning of the year. After peaking in January at more than $1 700 an ounce, it started to decline steadily reaching a low of $1 300 in June.
At present, prices are at about $1 400.
Online Reporter