Geita Gold Mines (GGM) plan threatens 350 jobs

Geita. The government has issued preconditions to Geita Gold Mines (GGM) in an effort to protect jobs as the miner ponders shifting from open cast to underground mineral extraction.
The government wants the mining firm to state the fate of about 350 employees who will be laid off when the miner shifts to underground mining.
“We will issue a permit (for the company to change its mining system) only after the government is satisfied that its conditions have been met,” Minerals minister Doto Biteko said during his tour of the mines at the weekend.
He said although underground mining would be more productive compared to the open cast system, the GGM management must explain its plan for the 350 workers.
It is estimated that the mine would generate up to $230 million a year after switching to underground mining, which experts say would enable them to extract more minerals. GGM started operations around 2000 using mainly the open cast system, but has gradually shifted to the underground system on a low scale since 2016.
The mining firm intends to fully embrace the technology later this year until 2028, during which up to 90 per cent of its minerals would have been extracted from underground tunnels.
Anglo Gold Ashanti deputy president Simon Shayo told Mr Biteko that the company was aware of the preconditions and that it has already started implementing some. He said although the 350 workers were likely to their lose jobs, the firm has started to provide some of them with underground mining skills.
According to him, already 150 have been trained on techniques they should have under the new system, adding that this would substantially reduce the number of those who will be laid off.
Mr Shayo  added that GGM has already paid some Sh1.9 billion as compensation to 2,830  people living in surrounding areas  whose houses developed cracks because of mine blasts.