By 
First Quantum Minerals (FQM) Ltd has announced that a number of workers are likely to loose their jobs as the company begins to implement its consolidation plan.
In June this year, the company announced that it would be consolidating FQM Operations Limited’s (FQMO) Road and Earthworks Division, Mining Division and related supporting services with operations at Kansanshi Mining Plc (KMP).
Last year, the mining firm also announced that it would be investing more than US$1 billion into a major new development at Kansanshi, known as the S3 project, as a result of the important reforms made to the mining fiscal regime.
Commenting on this announcement, Rudi Badenhorst, Chief Operating Officer of FQM said the company expected that some jobs would be lost as the consolidation was implemented, for example where there was a clear duplication of roles across both entities.
“However, this will only be applicable to a small percentage of the overall workforce, as the vast majority of FQMO employees impacted by the consolidation are being offered new roles at KMP,” Badenhorst said in a statement on Saturday.
He said at this point in time, it was not possible to say exactly how many employees may be ultimately affected, as the consolidation was being implemented in phases.
Badenhorst said there would be constant review, with other employment opportunities across the First Quantum Group likely to be identified during this process.
“All employees being issued redundancy notices, including those that will be offered new positions, are being given separation benefits in line with company policy and the provisions of the Employment Code Act,” he said.
Badenhorst said Zambian employment law does not, however, allow for a simple re-deployment of staff under these conditions, so there must be a technical redundancy process at FQMO, followed by the re-employment of these employees at KMP.
Read More: FQM begins nickel concentrate production, set to become Africa’s largest producer
“Our continued commitment to Kansanshi is demonstrated through our decision to proceed with the S3 project, and other strategic initiatives, totaling well over US$ 1 billion invested over the next 2 years,” he said.
Badenhorst said the S3 project would not only boost production to former heights, but it would also extend Kansanshi’s life by another twenty years into the 2040s and be a catalyst for job creation in the industry.
“Consolidating our mining operations at Kansanshi will enable us to better support the roll-out of these projects, and therefore helps ensure their ultimate success,” he said.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments