Bcl Mine To Cut Costs, Sell Private Jet
Chakalisa Dube | Monday March 21, 2016 15:25
The mine has, however, refused to shed any light on the pending retrenchments of the employees.
There has been wide spread speculation that the beleaguered mine is in the process of retrenching 2,000 employees in a bid to cut down on costs and ensure efficiency in the wake of unfavourable conditions.
Even some government officials have indicated that there will be retrenchments of employees. The Botswana Mine Workers Union (BMWU) also expressed worry about the impending retrenchments at the mine. The union is concerned that the mine has not communicated anything about the impending retrenchment at the mine.
Last week reports also emerged that the mine is in the process of selling its jet in a bid to cut down on the costs.
However, Molosankwe could only say that the mine is working tirelessly to reduce utilities costs as well as disposing of its non-core assets. He also confirmed the sale of the company jet as a cost reduction measure. “The company is involved in evaluating measures and processes to cut its costs of operation and such measures include, but are not limited to the following; fast-tracking Selkirk open pit (a resource at Tati Nickel Mine) to be on line by the end of 2016; reducing utilities costs; increasing utilisation of the newly rebuilt smelter by attracting additional concentrate from outside and disposal of non-core assets such as the BCL Jet (Plane/Aircraft), among others,” Molosankwe said.
He said that as a result of the evaluating measures, there may be need for re-organisation of the business at the mine. Molosankwe’s statement appeared to verify reports that the mine intends to shed its workforce.
“In this instance, the company will duly consult with employees and relevant stakeholders in accordance with established and known consultation structures i.e. labour laws of Botswana, collective agreement between the BCL and unions and our organisational values - most notably treating people with dignity and respect,” he said.
He added: “Implications of a decision taken thereof will be carefully considered within the broader context of transforming the organisation into a viable entity and its long-term survival”.
Molosankwe added that BCL, including its subsidiary, Tati Nickel Mining Company, has ore resources enough to operate for many years to come.
“BCL, however needs to bring down its costs of operation to match the depressed base metal prices in order to survive the harsh trading conditions.”
Most nickel producers worldwide are operating at a loss. Other nickel mines in South America, Australia, Europe and Africa have started to close and are retrenching employees because they cannot meet operating costs at current nickel prices.
In January, Molosankwe said other key producers such as Brazil-based producer, Votorantim Metais, Australia’s Mincor Resources and Panoramic Resources made announcements to cease production in the first half of 2016, while Queensland Nickel filed for voluntary administration.
Molosankwe also dismissed allegations that the mine has of recent been holding employee disciplinary hearings without engaging the union.
The union alleged that through the unfair hearings, the mine wants to dismiss employees en mass as a cost cutting measure.
“BCL has a disciplinary and grievance procedure that is followed in any cases of misconduct and the union is a signatory to such a procedure,” he said.
Of recent the union also alleged that the employees have been subjected to abusive language by some sections of the management, but Molosankwe said that BCL is not aware of the allegations.
Molosankwe said BCL would institute investigations to verify the allegations and take necessary remedial steps.
In fact, the union through its general secretary, Mbiganyi Ramokate wrote a letter this week complaining about the behaviour of some managers towards employees.
“At Selebi shaft employees are being subjected to disciplinary proceedings after they showed displeasure at how one of the managers had used abusive language against them. This is despite the fact that an undertaking that both the union and the mine have to meet and find the root cause of the problem,” Ramokate said.