Goldfields Ghana’s Vice President and Head of Corporate Affairs, David Johnson said the contractor that will take over the operations of the mine will re-engage them.
In an interview with Accra-based Citi FM, Goldfields Ghana’s Vice President and Head of Corporate Affairs, David Johnson said the contractor that will take over the operations of the mine will re-engage them.
”It’s important to add however that we have done a similar exercise a year ago where over eighty percent of the retrenched workers were actually absorbed by the contractor, so it’s not the case that you leave your employees and that the end of the story, we actually engaged the contractors to ensure that as many people as possible are re-engaged by the contractors”.
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Goldfields Ghana has confirmed that it will sack about 1,500 of its employees.
The retrenchment is expected to affect the majority of its miners at the Tarkwa mine.
Johnson who confirmed the retrenchment exercise explained that the mining model of the firm has changed from owner mining operation to contractor operations.
“We are changing our business model from an owner binder to the contract binder, previously Goldfields acquired and maintained the mining fleets. Now what we are doing right now in 2017, our mining fleet has changed and will need to be replaced now looking at the types of mines that we have which is five to six years of active mining, if we were to pump that money into fleet replacement we will not actually be able to recruit that money back because we are talking about a huge capital investment here.”
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“So now we have to look at our options. You have a contracted miner on the side who has fleets already and that is new and can be more efficient so that has actually influenced decision, the fact that we have an engine mining fleet and also a relatively limited life supply,” he added.
This is the second time in three years the mining firm has embarked on such a massive retrenchment exercise.
In 2014 it laid off about 400 of its workforce over similar concerns.
The layoffs will take effect this month December 2017.