MIMOSA Mining Company are pursuing cost-saving initiatives to increase volumes, improve efficiency and manage production costs, executive chairperson Winston Chitando has revealed.
BY TATIRA ZWINOIRA
Speaking to NewsDay at the launch of the company’s official website last Thursday, Chitando spoke about the cost-saving initiatives as a way of improving the company’s performance as it nears its financial year.
“Globally, in terms of the resource industry, pressure on the cost curve is going up. So the efforts to manage costs are ongoing in most companies, but particularly for Mimosa,” said Chitando.
This was in response to the mining company’s last quarterly report that showed a slump brought about by the weakening South African rand against the United States dollar. Chitando cited government’s proposal to introduce a 15% levy on exports of unprocessed metals as another challenge the company was facing.
Chitando said because of efforts in pursuing these cost-saving initiatives, the company’s key performance indicators (KPI) were much better, with quarterly volumes much higher.
“Improvement in our KPIs and quarterly volumes automatically leads to lower unit costs,” said Chitando.
On trading, Chitando said Mimosa had had a very reasonable nine months since the start of their new financial year in July 2014, in terms of the four main pillars of the company.
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“The purpose of this website is to enable us to communicate better with our stakeholders. We realise a website is an effective tool for communicating our operations,” said Chitando.
He revealed that with the creation of the website, the company hoped to ensure information was always available to those who needed it in real time.
“The website will enable us to respond speedily to news, events and queries, resulting in improved stakeholder relations thus having instant representation,” said Chitando.
He admitted that the website was long overdue and it was time for the company to be up to date and easily accessible. The website is user-friendly and easy to navigate, and will have information in real time.
