Mine to send workers on unpaid leave

Published: 23 April 2014

Gold producer Pan African Mining on Tuesday said it is considering sending workers on a two weeks unpaid rotational leave as a cost-cutting measure since it has not been operating due to lack of electricity after supplies were disconnected.

The company, which operates Ashyre Mine in Banket and Muriel Mine in Mtorashanga, has been failing to pay its workers on time in the past few months due to a surging electricity debt.

Power utility ZESA Holdings in January disconnected electricity to the two mines over an unpaid bill which was reported to be close to $1 million.

Pan African Mining chief executive Mr Peter Traquino told New Ziana the mining firm was under-capitalised.

"We have been expecting a $9 million loan from a Hong Kong-based company but the process is taking longer than expected within the bank's internal authorities. But hopefully we will receive the money in the next two weeks to recapitalise the firm," he said.

"As for salaries, we are paying them in phases based on the availability of funds.

"We have since outlined the possibility of embarking on a two-week rotational leave in the event the situation worsens," he said. A worker who spoke to New Ziana on condition of anonymity said only Grades One to Ten had been paid half of their March salaries.

"The rest of the workers did not get their March salaries. We have however been given three options by top management, namely to cut salaries by 50 percent, to embark on a two weeks rotational leave or to cut the labour force," he said.

Last year the country's gold output marginally fell by two percent to 12,66 tonnes from about 14 tonnes after Government banned all mining activities along river banks to halt environmental degradation. The country is targeting to become one of the top five gold producing countries in Africa within the next three years.

- New Ziana.

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