By Eveline de Klerk
SWAKOPMUND – Rössing Uranium yesterday announced it would retrench at least 265 of its workforce in a strategic move to keep operating and avoid care and maintenance or closure.
Rössing will also introduce a new operating plan that will cut about N$1 billion from its fixed operating costs, but that still leaves a shortfall of about N$90 million.
The announcement was made by the company’s managing director Werner Duvenhage in Swakopmund. He said the decision to reduce its 1 168 workforce would allow the company to withstand further spot price reductions and at the same time keep options open if spot prices increase significantly.
According to the new operating model, Rössing will only produce sufficient quantities of uranium to supply existing long-term contracts.
The mine’s proposed new operating model creates a new way of work and consists of a number of strategies of which some will be implemented over the next few months while others are still being explored.
According to Duvenhage, the first phase of the new operating plan will include a 5-day operating cycle, 3-panel shift pattern, revised mining and milling targets and new annual schedules to reduce the impact of public holidays.
A number of other cost-cutting measures to improve efficiency and reduce costs sustainably for the mine are also being looked at.
Duvenhage said the second phase would look at further improving efficiency by considering outsourcing and in-sourcing opportunities.
“The implementation schedule of the proposed new operating plan will see the company going into its new look as from August this year. This leaves the mine with no option but to reduce its workforce, which will affect about 265 roles,” Duvenhage explained.
All workers will be given the opportunity to apply for voluntary retrenchment followed by involuntary retrenchment.
This is the second time Rössing is retrenching its employees through a restructuring process
Since 2012 the company has carried out a number of activities to reduce costs.