CHIBULUMA Mines on the Copperbelt is to restructure its operational plan for 2016 and develop the Chifupu copper project in order to prolong the mine’s lifespan from 2018 to 2022.
Chibuluma Mines board chairman Jackson Sikamo said the restructuring plan was scheduled to be carried out in the first quarter of 2016.
He said that would result in 263 employees being made redundant.
Mr Sikamo said in order to mitigate the magnitude of job losses and ensure decent alternative jobs, the company has made arrangements for a significant proportion of the employees affected to be taken on by the contractors who would carry out the outsourced services.
He said for the company to continue the development of the Chifupu copper project to prolong the mine’s life from 2018 to 2022, the mining output from Chibuluma South will reduce to 27,000 tons per month from 45,000 tonnes.
“This adopted option will be implemented expeditiously whilst ensuring that all the operational and business risks are identified and a systematic risk management mechanism is put in place to address them,” he said.
Chibuluma Mines Plc was incorporated in October 1997 following the privatization of the then Zambia Consolidated Copper Mines Limited.
The parent company is Metorex (Pty) Limited of South Africa who own 85% of shares while ZCCM Investments Holdings Plc own the remaining 15%.
Metorex is in turn wholly owned by Jinchuan International of China.