JOHANNESBURG (miningweekly.com) – Mozambique-focused mineral sands miner Kenmare Resources plans to reduce the number of employees at its Moma mine by between 15% and 20% as part of its cost cutting programme.
The company noted in a statement on Tuesday that, although it had worked to reduce unit costs and conserve cash, these measures had been insufficient to offset the decline in prices.
The company had been engaging with employee representatives to explore alternatives to job cuts, including potential amendments to pay scales and voluntary redundancies.
“However, it is now expected that compulsory redundancies will be necessary,” the company said.
Kenmare added that it would continue to engage with the Mozambique government and workers' unions in this regard.
Meanwhile, the company reported that grid power had been restored to the Moma mine following the recent flooding in northern Mozambique, which had caused a prolonged grid power outage. As a result, mining and heavy minerals concentrate production at both ponds has resumed.