Chingola, Zambia — 27 May 2013 – Vedanta Resources plc’s Zambian unit, Konkola Copper Mines plc, is planning to cut 24% of its workforce as a result of costs rising and the copper price falling.
Bloomberg News reports that an e-mailed statement released here says the company is to reduce the total number of employees at its Zambian operation from 8,263 to around 6,000.
Copper for three-month delivery has slumped 8.3% to US$7,273/t over the past 12 months in London trading. Meanwhile KCM, as the company is known, says labour and electricity, its two key costs, have been “increasing constantly and substantially.”
“KCM needs to make business changes to remain economically viable,” the statement said. “Regrettably, this means reducing staff numbers as many of the upgrade and expansion projects come to an end.
Source: Bloomberg News. For more information, click here.