A UNIT of Falcon Gold has resolved to fire employees on fixed term contracts and place those on permanent contracts on two months unpaid leave effective November 1 after production plummeted to alarming levels, NewsDay has established.
BY MTHANDAZO NYONI
According to a memo signed by Casmyn Mining Limited mine manager Luckson Manda, the mining company has fallen on hard times after missing set targets twice.
“Prior to June 2017 we were targeting to produce 650 tonnes of ore from underground, but we failed to meet this plan. We further revised the target to 459 tonnes which we again failed to meet,” reads the memo in part which was signed on November 1.
“We tried to augment the tonnage with Iron Duke, but the grades were poor and a decision was made to stop Iron Duke. It is common cause that we are currently mining and hoisting 250 tons per day, which can be processed by one mill,” Manda said.
In this regard, Manda said management has taken a decision to stop the other two mills with immediate effect.
“What this means is that employees will be affected as the current staff compliment was designed for 650 tonnes milled. In terms of the law, companies can institute measures to avoid retrenchment, in terms of section 12D (2) of the Labour Act,” he wrote.
“As such, management has taken a decision as follows: Some employees on fixed term contracts shall receive notice of termination of their employment contracts starting today (November 1, 2017). Some employees on permanent contracts shall be placed on two months unpaid leave effective 1 November 2017,” he said.
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Manda said it was management’s belief that with these savings, they should be on an upward trajectory from January 2018 onwards. Efforts to get a comment from Casmyn management were fruitless at the time of going to Press.
