Q FM Africa's Modern Radio
CHIBULUMA Mines PLC has confirmed that it will be laying off 263 workers as part of its restructuring plan scheduled to be carried out within the first quarter of 2016.
Company Board Chairman Jackson Sikamo in a statement issued to QFM News says in order to mitigate the magnitude of job losses and ensure decent alternative jobs, THE Company has made arrangements for a significant proportion of the employees affected to be taken on by the Contractors who will carry out the outsourced services.
Mr. Sikamo says the Mine’s performance in the financial year 2015 has been characterized by low production volumes and this coupled with the continuously falling copper prices has put 
severe pressure on the Company’s cash-flow.
He states that the Company is in a loss making situation which, if left unaddressed may force the Company to suspend its operations permanently.
Mr. Sikamo says Management has therefore resolved to restructure the business, in order to ensure the survival of the Company.
He explains that the restructuring places focus on reducing mining rates, SUBSTANTIALLY outsourcing mining and ore transfer activities and significantly reducing overhead expenditure.
Mr. Sikamo states that through this process, various mine operating survival options have been considered and though the available options are not economically viable, the Company through its majority shareholder Metorex (Pty) Limited has made a strategic long term decision and selected the survival option with the least losses over the life of the mine.
He says the adopted option will be implemented expeditiously whilst ensuring that all the operational and business risks are identified and a systematic risk management mechanism is put in place to address them.