Chingola, Zambia — 04 July 2013 – KONKOLA Copper Mines (KCM) “’ a subsidiary of London-listed diversified metals and mining group Vedanta Resources plc “’ says it is exploring options to reduce operational costs instead of laying off workers.
KCM public relations manager Joy Sata said in a statement here that government and three mine worker unions were negotiating to find other means of reducing costs and avoiding job losses, reports allAfrica.com.
“Reduction of labour is not the option as this matter is under negotiation with government and the unions,” she said.
Recently, KCM threatened to lay off 2,000 workers, but rescinded its decision after government intervened.
KCM strategy and business development director Brad Gnanasivam said recently that following government’s intervention, KCM was still exploring other mitigation measures to enable it cut down on operational costs.
The company did not find pleasure in laying off workers “’ that was a last resort, he added.
Gnanasivam pointed out that KCM was in a difficult position in terms of its cost base as copper prices had been going down from US$8,500 two years ago to US$7,700 last year, and this year the price had dropped further to US$6,700.
Source: allAfrica.com. For more information, click here.