GOLD producer Metallon Corporation says workers at one of its units have embarked on an industrial action over a backlog in wages.
In a statement yesterday, Metallon said workers in grades 1 to 10 at Arcturus Mine embarked on an industrial action over arrears which accumulated during the time the mine was closed.
The gold producer said while the mine was struggling to meet production figures, all employees in the grades 1 to 10 have been receiving their wages on a monthly basis.
“Metallon Gold would like to inform that Arcturus Mine is currently not achieving production targets and due to the current gold price environment is not profitable,” it said.
In 2015 the mine made a loss of $7 million and “has been kept in operation due to interventions from other sources”.
“Management has been working tirelessly to find alternative means to give the mine a sustainable future and industrial action is jeopardising these efforts, and negatively impacting production at the mine,” it said.
Metallon is a gold mining company with producing assets in Zimbabwe and exploration assets in Zimbabwe, Tanzania and the Democratic Republic of Congo.
In November, Metallon announced that it was cutting its 150 000 ounces annual target by 30% due to power outages and challenges at its units.