Maravi

Munali Nickel Mine lays off 271 workers

Munali Nickel Mine lays off 271 workers
Written by Chiwoyu Sinyangwe
Monday, December 08, 2008 5:42:00 AM

ABOUT 271 workers at Munali Nickel Mine in Mazabuka have been axed as the mine grapples to cut down its operational cost owing to the drop in global metal prices.

And Albidon Mine of Australia, the 100 per cent shareholders of Munali Nickel Mine, has stated that it is reviewing costs at its Munali project in the light of plummeting commodity prices.

According to sources at the mine, the number of workers to be laid off at the country’s sole nickel mine might increase to over 350 as management reviews its operational costs.

In a statement posted on the company’s website, Albidon has advised that it expects lower than expected, production from Munali Mine, which has forced it to raise extra capital in a bid to ramp up to full production more quickly.

Munali Nickel Mine general manager for corporate affairs Dr Sixtus Mulenga could not comment on the matter as he was unreachable by press time while Mazabuka District Commissioner Tyson Hamaamba confirmed having received a report but that he was waiting for a “comprehensive report” from mine owners.

Albidon stated that it was also looking to boost ore tonnages and ore quality as quickly as possible.

And at the same time, Albidon shares were off 1.1 cents, or 11.46 per cent, to 8.5 cents last week.

Albidon further stated that reduced output, combined with lower nickel prices has resulted in shortages of working capital.

"Additional working capital finance has been raised through the combination of hedging close out, debt restructuring and recent equity placement," the statement read in part. “It is forecast that these funds will allow the mine adequate working capital to ramp up to full production, based on the current mine plan and nickel prices forecast.”

The Munali Nickel miner stated that it was undertaking a review of its operation which had been experiencing delays in production ramp up since the mine came online in July this year.

The company was targeting nickel production of between 10,000 and 10,500 tonnes per year.

And the nickel price for 60-day delivery has dropped from about US $6.50 per pound last October to around US $4 per pound.

Labels: JOBLOSSES, MUNALI NICKEL MINE, NICKEL

posted by MrK @ 5:42 AM