Metallon Corp. Ltd. gave a three-month notice for dismissal to hundreds of workers at the Mazowe mine in Zimbabwe after it was placed on care and maintenance, the African News Agency reported Sept. 3.
The gold miner's operations in Zimbabwe include How, Shamva, Mazowe, and Redwing.
"Workers have been given three months notices pending dismissal. The workers are now rendered jobless and will be waiting for their packages in five months," a source said.
"Please be advised that due to restructuring your position has become redundant and, accordingly, you are hereby given three months notice of termination of your employment," a letter from acting Managing Director Joseph Chifamba read. The letter noted that the notice period will run from Sept. 1 to Nov. 30, while a retrenchment package is being negotiated in the works council.
According to unconfirmed reports, around 200 workers at the Shamva gold mine were also served with termination notices.
However, the company said that it is undergoing a re-engineering of its operations. The expansion projects at the How, Mazowe, Shamva, and Redwing mines will cost a total of around US$530 million, and bankable feasibility studies are currently underway for the planned expansion.
The company noted that a number of positions will be placed on shifts or short-time while the review is underway, in order to reduce costs, increase productivity, and ensure long-term viability.