Chinese mining company Sinomine wants to fire workers at its Tsumeb smelter. The company promised not to cut jobs for three years after buying Dundee Precious Metals last August. Competition officials made this promise part of the merger deal. The company faces money problems and needs to reduce costs. Workers learned about the job cuts during meetings with company leaders.
Company boss Loggan Lou said copper markets are tough right now. Too many smelters exist around the world but not enough copper ore to process. The Tsumeb plant will stop copper work and switch to maintenance mode until business improves. Lou wants to cut company costs between 30 and 40 percent. The company will start voluntary job cuts for about 260 of the 650 workers.
Union leaders say the job cuts break the merger rules. The Mineworkers Union plans to contact government officials about the problem. Competition Commission officials did not know about the planned job cuts. They warn the company could face punishment for breaking merger conditions. The merger happened less than one year ago and the no-firing promise should last until 2027.
Company boss Loggan Lou said copper markets are tough right now. Too many smelters exist around the world but not enough copper ore to process. The Tsumeb plant will stop copper work and switch to maintenance mode until business improves. Lou wants to cut company costs between 30 and 40 percent. The company will start voluntary job cuts for about 260 of the 650 workers.
Union leaders say the job cuts break the merger rules. The Mineworkers Union plans to contact government officials about the problem. Competition Commission officials did not know about the planned job cuts. They warn the company could face punishment for breaking merger conditions. The merger happened less than one year ago and the no-firing promise should last until 2027.
