Thursday, May 23, 2024

DML restructures in bid to save Boseto mine

Discovery Metals, the BSE/ ASX quoted junior miner will shed jobs at Boseto mine in the new year in a bid to cut costs and offset the impact of lower copper prices.

Labour is the second significant cost to the company after diesel as company generates its own energy at the flagship project.

The company revealed it has been engaged in consultations with its valued employees and the Botswana Mine Workers Union since October 2013 to consider the economic status and efficiency of the Company’s Boseto Operation.

“After long and careful deliberations, the company has concluded that for the benefit of the majority of employees and the ongoing security of the entire Boseto Operation, the retrenchment of a proportion of our employees at the Boseto Mine is required,” Discovery’s Country Manager Botswana, Mokwena Morulane stated.

“Retrenchments in all other divisions of the Discovery Group have already been completed to ensure the ongoing success of Discovery’s business.”

According to Morulane, the retrenchment exercise at Boseto will affect only 85 employees based at the Boseto Operation out of a total staff complement of 516 protecting the on-going jobs of 85 percent of our workforce. Following the restructure it is anticipated that normal operations at Boseto will continue.

“The company recognises that this is a difficult time for all employees and has endeavoured to provide support to retrenched staff in the form of a financial package, and has made available a professional counselling service, the cost of which will be borne by the Company,” he said.

He added that support will also be provided to remaining employees to help them remain focused on their role and the continued safety of all.

“This decision is one we sincerely regret, but ongoing improvements in the Boseto Operation’s efficiency and cost competiveness will assist with its long-term sustainability in the world copper market place. Ultimately, the long-term sustainability of the Boseto Operation is in the best interests of our employees and local suppliers.”


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