Business News of Tuesday, 12 December 2017
Source: citibusinessnews.com
2017-12-12
In 2014 Goldfields Ghana laid off about 400 of its workforce over similar concerns
Mining firm Goldfields Ghana, has told Citi Business News majority of the workers at Tarkwa mine, that will be laid off this month – December 2017 will be reemployed by the contractor that will take over the operations of the mine.
The mining firm confirmed this morning, 12th December 2017 to Citi Business News that it will lay off about 1,500 of its workers.
The retrenchment will affect the company’s mining and Heavy Mining Equipment department at the Tarkwa mine.
Citi Business News has gathered the layoffs will take effect this month December 2017.
Goldfields told Citi Business News it had to undertake the layoffs due to the current life of the mine which stands at between five and six years, and cannot purchase a new fleet because of the short payback period.
This is the second time within three years the mining firm has embarked on such a massive retrenchment exercise.
In 2014 it laid off about 400 of its workforce over similar concerns.
Sacked workers to be reemployed
Goldfields Ghana’s Vice President and Head of Corporate Affairs, Mr. David Johnson confirming the retrenchment exercise to Citi Business News said that majority of the workers that will be laid off will be reemployed by the contractor who will take over mining activities of the mine.
”It’s important to add however that we have done a similar exercise a year ago where over eighty percent of the retrenched workers were actually absorbed by the contractor, so it’s not the case that you leave your employees and that the end of the story, we actually engaged the contactors to ensure that as many people as possible are reengaged by the contractors”.
Earlier he explained to Citi Business News that the company had to embark on the layoffs because it had changed its mining model at the mine from owner mining operation to contractor operations, because it will operate at a loss if it goes on with its previous model.
”We are changing our business model from an owner binder to the contract binder, previously Goldfields acquired and maintained the mining fleets. Now what we are doing right now in 2017, our mining fleet has changed and will need to be replaced now looking at the types of mines that we have which is five to six years of active mining, if we were to pump that money into fleet replacement we will not actually be able to recruit that money back because we are talking of a huge capital investment here.
So now we have to look at our options. You have a contracted miner on the side who has fleets already and that are new and can be more efficient so that has actually influenced decision, the fact that we have an engine mining fleet and also a relatively limited life supply”.
