JOHANNESBURG (miningweekly.com) – Mineral sands miner Kenmare Resources has temporarily suspended operations at its Moma mine, in Mozambique, after a group of employees embarked on industrial action.
The industrial action was in response to cost-cutting measures, including retrenchments, being implemented by the company.
Kenmare in February announced that it would retrench between 15% and 20% of employees at the mine, as other efforts to reduce unit costs and conserve cash had been insufficient to offset low mineral sands prices.
The miner on Wednesday said that, after tripartite discussions with the Ministry of Labour, the union and management, the parties agreed that shift allowances would be reduced, work patterns would be changed and 162 people would be retrenched.
This was significantly lower than the initially planned retrenchment of 350 people.
The reductions in shift allowances were being implemented on a graduated basis through the course of this year.
“Moma management, employee representatives and officials from the Ministry of Labour are working towards a swift resolution of this unofficial industrial action,” Kenmare said in a note to shareholders on Wednesday.