Kitwe, Zambia — 07 June 2013 – TantsiVedanta Resources plc, the metals and oil producer controlled by billionaire Anil Agarwal, has called a halt to its original plan to cut more than 2,000 jobs at its copper mines in Zambia.
“We are not going ahead with this redundancy programme,” Konkola Copper Mines plc (KCM) spokeswoman Joy Sata told Bloomberg News by mobile phone. The company, which is 79.4% owned by Vedanta, reversed its plans after talks with the government and labour unions, she said.
Mining companies including Anglo American Platinum and Rio Tinto Group have announced job cuts this year as they seek to cut costs and protect profits amid falling metal prices. Konkola had previously announced its intention to fire 24% of its workforce last month.
Copper prices have slumped 6% since the start of the year, with prices for three-month delivery closing at US$7.455/t yesterday on the London Metal Exchange.
“Significant progress has been made in identifying measures that will mitigate the company’s financial and business challenges,” KCM said in an e-mailed statement.
Source: Bloomberg News. For more information, click here.