LSE-listed African gold miner Acacia Mining has accelerated its organisational change structure process in response to the current weaker gold price which will see about 27% of its workforce leave the company over the next few months.
The organisational change structure forms part of Acacia’s process to drive productivity and cash flow across the company which operates mines in Tanzania, an initiative which has been on-going for the last two years.
27% of Acacia’s workforce represents around 1 050 employees of which some have already left. The exits are through a combination of voluntary separation agreements and redundancies.
The largest proportion of the role reductions are at Bulyanhulu, but all mines and offices will be affected. As part of this process Acacia has fulfilled all local legislative requirements and is committed to minimising any employee hardship. As such it has put in place support services to assist those affected.
Significant changes already made over the past two years include the mechanisation of the Bulyanhulu mine and the move from open pit to underground mining at the Gokona pit at North Mara.
Alongside a formal cost saving programme, these changes have led to a reduction in our costs of approximately 30% from their peak in 2012.
As part of this process, there has been an on-going programme to ensure that Acacia’s workforce is of the appropriate size and mix for its operations. This process, initially scheduled to continue through to the end of 2016, has already led to a 60% reduction in the number of higher-cost expatriates.