Business News of Wednesday, 13 December 2017
The Ghana Mine Workers Union is rejecting reasons given by mining firm, Goldfields Ghana Limited to embark on a retrenchment exercise.
Goldfields Ghana Limited told Citi Business News it will lay off about 1,500 workers this month as part of measures to change its business model, and make the company profitable due to the relatively short lifespan of the mine.
But reacting to the issue, the Deputy General Secretary of the Ghana Mine Workers Union, Abdul Gbana argued that the reasons given by Goldfields is inconsistent with the fact on the ground.
“Records available to us, and also very much available to Goldfields itself indicates that, contrary to their claim of a life of mine between five to six year, they have a whopping sixteen years of life of mine. Their own website projects sixteen years, the audited minerals resources and reserve resource as early as December 2016 confirms what they have posted on their website, the question is who are you misleading,” he quizzed.
According to him, the mine can operate for sixteen years, which means the company has enough mine life to make profit.
He added that a second reason given by Goldfields that its fleet are old is untenable since they are fairly new and can be used for work.
“Goldfields claims that on the basis of limited life of five to six years, they cannot invest in mining fleet which by the way are fairly new and can actually run a number of years and you don’t necessarily need to replace or invest in new mining fleet”.
Mr. Gbana argued that the company was finding excuses to lay off workers just to increase its profit margin.
He cited for example that a similar move was used by the company in its Dammang mines where the same excuses were given but the company has way operated beyond the mine life Goldfields projected.