Galane Gold, Mupane's owner, engaged GNS Projects to conduct 100 percent of its mining in March, citing the high cost of doing the activities in-house. The move resulted in the retrenchment of 90 workers who worked in Mupane's mining and geology department.Prior to March, 70 percent of mining activities at Mupane were outsourced to GNS Projects, with the balance performed in-house. Mupane Gold mining manager Dominic Kabamba told BusinessWeek that the producer was collaborating with the contract miner. He revealed that due to challenges in mobilising resources and expertise to executive its mandate, GNS Projects had mined 20,000 tonnes instead of the set target of 39,000 tonnes per day.
"They are still mobilising resources including expertise after we awarded them a tender to do 100 percent mining for us," he said."Because they are still mobilising, we have been assisting them manage some of their operations at the mine". Kabamba added that GNS Projects were also experiencing problems in sourcing funds that would allow them to efficiently manage operations at the mine. "Banks are cautious to give mining companies loans due to the unstable economic conditions and unsteady mineral prices around the world," he revealed."For this reason, it has been difficult for GNS to secure funds to efficiently manage their operations. That is why we do assist them with some resources and technical expertise. It however does not mean that they are failing. We hope that as metal prices improve, banks will be able to fund the company to improve its efficiency at the mine."
