BCL looks to cut 2,000 jobs
Brian Benza | Friday March 4, 2016 18:00
Department of Mines director, Gabotshwarege Tshekiso told BusinessWeek that initial estimates are that BCL might retrench as many as 2,000 workers as it seeks to optimise operations ahead of any possible government bailout.
Ghaghoo Diamond Mine in the CKGR, which plans to halve its output this year due to depressed diamond demand, is also undertaking a restructuring exercise that might see about a 100 of its 250 workforce being retrenched.
“Its hasn’t been finalised yet, but BCL will likely cut about 2,000 jobs while Ghaghoo might lay off as much as 100. But we are hoping the effects of these cuts might be mitigated by the upcoming Khoemacau Copper Mining and Lerala mines which might absorb some of the redundant workers,” Tshekiso told BusinessWeek on the sidelines of a briefing hosted by the Ministry of Minerals, Energy and Water Resources this week.
Speaking at the briefing, Minister Kitso Mokaila said government has taken a tougher stance on BCL for it to optimise operations and run efficiently.
“Government is reviewing a lot of aspects on BCL. We want the company to cut out all wastages so that it can run efficiently. We have engaged the new Minerals Development Company of Botswana (MDCB) to assist BCL management in optimising operations.
“Unfortunately that will mean some job losses but we want to satisfy ourselves that the company is running efficiently before we can assist them financially,” said Mokaila.
BCL managing director, Dan Mahupela recently said the company was looking at closing down loss making operations as the company struggles to survive the low international commodity prices scourge.
Speaking at a council meeting recently, Mahupela said the company was reviewing operations at its four shafts as part of the new cost cutting strategies which include the closure of their Johannesburg office as well as the Phoenix mine at Tati.
He said out of four operational shafts at the mine, only one, the Selebi North, was running profitably.
On the other hand, Gem Diamonds confirmed that due to the sharp decline in the prices of rough diamonds of the type produced at Ghaghoo mine and in order to minimise losses incurred at the mine, it will be downsizing the operations conducted at the mine.
“The mine management is currently undertaking a full consultation process in connection with the potential downsizing of the workforce in Botswana in accordance with the laws of Botswana,” the London-listed company said in response to BusinessWeek enquiries.
Ghaghoo had an original production target of 720,000 tonnes per annum for 2016, but will now cut it to 300,000 tonnes.