Why this mining firm in Tanzania is about to retrench workers

 Pangea Minerals Limited (PML) will reduce its workforce next month, it has been announced.

PML is owned by Acacia Mining. 

What you need to know:

It is the second reduction to Acacia’s workforce after the company, whose majority shareholder is Barrick Gold, in September 15, 2017, reduced its number of employees by 2,000. 

Dar es Salaam. Pangea Minerals Limited (PML) will reduce its workforce next month, it has been announced.

PML is owned by Acacia Mining. 

According to Pangea, the number of workers will be reduced as the company to cut operating costs. 

“Extraction operations in the mine will come to an end by 2020. The new cut will include employees in sections that are no longer operating,” said PML general director Benedict Busungu yesterday. 

He said Pangea was in talks with its employees to ensure they were provided with their requisite work compensations. 

“I don’t know the exact number of employees whose contracts will be terminated. We continue with the assessment to reduce the workforce.” 

It is the second reduction to Acacia’s workforce after the company, whose majority shareholder is Barrick Gold, in September 15, 2017, reduced its number of employees by 2,000. 

The company is in dispute with Tanzania over tax payments and was caught up in sweeping changes to the country’s mining industry spearheaded by President John Magufuli. 

This comes after the government imposed a ban on exports of gold and copper concentrates in March, 2017. 

Acacia had said it would need to consider cutting operations if the ban of concentrates was not lifted by the end of the third quarter. 

According to Mr Busungu, the company has 300 employees.