WINDHOEK – Okorusu fluorspar mine is closing, sending home the 407 employees, while placing the mine in “a period of intensified exploration and metallurgical research and development to assess the potential for beneficiation of the remaining low grade ores and to continue searching for more viable ore resources”.
“After 26 successful years, the viable higher grade ore resources are now depleted, resulting in production that is no longer economical,” Mark Dawe, managing director at the Okorusu fluorspar mine, said in a statement yesterday.
The company says while preliminary research has shown a significant improvement in the separation of fluorite from the gangue minerals, the process is not economical under the current unfavourable market conditions with low demand and pricing.
Solvay, which owns Okorusu, says it will give all its employees appropriate notice of termination of their employment by the end of November under severance conditions that well exceed the minimum required, as set out in the Labour Act of 2007. Contracting companies will be given notice of termination of their contracts at the same time.
Of the 407 people employed at Okorusu fluorspar mine there are 321 full-time employees and 86 contractors. The mine is located in Otjiwarongo, in Otjozondjupa Region.
About 30 employees will be re-hired immediately on fixed-term contracts to carry out and supervise the care and maintenance of the mine, as well as the ongoing exploration and research and development.
“The possibility of restarting mining and processing operations will depend on both the successful outcome of this intensified research and development work as well as on improved market conditions and pricing for acid grade fluorspar. Should the comprehensive feasibility study warrant restarting of mining and processing operations in future, Okorusu will endeavour to rehire as many of its previous employees and contractors as possible,” the statement said.
“It is with deep sadness and regret that we must announce the termination of employment of nearly all of our employees and contractors,” said Dawe.
In addition to setting up a help centre, the mine management would be working closely with the Chamber of Mines of Namibia to facilitate the placement of as many employees as possible at other Namibian mines, the company said.
The mine also said it has committed to mitigating the environmental impact of the mine in accordance with the provisions of its Environmental Management Plan and the Mine Closure and Rehabilitation Plan.
“Accordingly, the implementation of the rehabilitation and closure plan will depend on whether or not operations will resume in 2015,” the statement said.