A mainstay of the Tsumeb economy in the Oshikoto region has announced job cuts as it streamlines its operations to ensure sustainability.
It is still not clear how many of the approximately 800 people employed at Dundee Precious Metals (DPM) Tsumeb will be retrenched following last week’s announcement by the company that it has embarked on a cost structure reduction exercise.
The overall objective of the exercise is to reduce operational costs, of which labour is one component, and this is expected to be completed by the end of July 2022.
In a statement issued on Friday, DPM Tsumeb said it has “commenced a comprehensive process to optimise its cost structure, as market fundamentals have necessitated an overall review of the business to ensure the Tsumeb Smelter remains globally competitive for the long-term”. DPM Tsumeb shared details of this process with employees and stakeholders at the beginning of last week.
“We are committed to being a long-term sustainable operation that generates value for our stakeholders,” said Zebra Kasete, Vice President and Managing Director of DPM Tsumeb.
“We are, therefore, conducting an extensive review of all high-cost areas such as energy, consumables and labour.”
Kasete explained that automating and digitalising its plants would be part of the process to ensure the safety of employees and introducing efficiency in operations.
In addition, DPM Tsumeb is considering the introduction of 30% renewable energy, which would further reduce operational costs. He confirmed that the result of operational improvements would also regrettably include a reduction in the workforce. “We will initially focus on voluntary separation and voluntary early retirements, as well as a review of existing contractor arrangements and other opportunities for efficiencies,” he added.
Kasete further assured stakeholders that DPM Tsumeb will continue putting the safety and wellbeing of people first, and will maintain business commitments with community partners. “Early voluntary retirement packages are expected to exceed industry practice, with additional employee assistance support being offered to all impacted employees. These initiatives are necessary to better position DPM Tsumeb in the current market, and will be progressed in line with the company’s values and respect for our stakeholders,” read the DPM statement.
DPM Tsumeb’s smelter was originally constructed in 1963, and is one of only a few in the world that can treat complex copper concentrates. The smelter produces 98.5% pure copper blisters and with its ability to treat complex copper concentrates, is transitioning from a captive smelter, receiving mainly DPM concentrates from mining operations in Bulgaria. Since acquiring the Tsumeb smelter in 2010, DPM Tsumeb has made significant investments in the smelter, including upgrades to the plant.
Contacted for comment on these planned retrenchments, Mineworkers Union of Namibia (MUN) secretary general Ebben Zarondo said the union is still engaging its regional structures and branch executives, including the Dundee branch executive committee.
The MUN SG said he would respond in more detail once he has more information about the retrenchments and the number of people to be affected.
– ebrandt@nepc.com.na