Vedanta Resources plans to cut 2,000 jobs in Zambia

By bne IntelliNews May 27, 2013

Zambian mining company Konkola Copper Mines (KCM), owned by London-listed metals and mining group Vedanta Resources, has announced plans to lay off 2,000 employees in order to restore profits, Lusaka Times reported. KCM has said that the price of copper on the world market has been steadily declining, by 22% in the last year, and macro-economic trends suggested it would remain depressed. On the other hand, KCM’s labour and electricity costs have been growing. KCM currently employs 8,263 people in Zambia, which is the biggest copper producing nation in Africa.

The announced job cuts may spark labour unrest. Zambia’s Labour Ministry has initiated consultations with KCM management and mine unions in an effort to mitigate the impact of the planned layoffs. Consultations would continue this week.

KCM operates two mines at Nchanga, comprising an underground mine and four open pits, the Nchanga Smelter, Konkola Mine, Nkana Refinery and the Nampundwe pyrite mine.

Related Articles

Russia's Rosneft sets foot in Mediterranean with $1.125bn Eni deal

Russia's largest oil producer state-controlled Rosneft has acquired 30% in the largest natural gas field in the Mediterranean from Italian Eni, the company announced on October 9. Rosneft that ... more

PetroSA, Rosgeo sign $400mn oil and gas exploration agreement for South Africa

South Africa's national oil company PetroSA and Rosgeo, the geological exploration company of the Russian Federation, have signed an agreement on a $400mn oil and gas development project in South ... more

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more

Dismiss