The National | May 4th, 2016
RAMU NiCo Management (MCC) Ltd plans to lay off workers because of the forced suspension of its operations, and the effect of low commodity prices.
It is now conducting a rationalisation exercise for employees at its Kurumbukari (KBK) mine and Basamuk refinery in Madang.
The Mineral Resources Authority had ordered the company to cease the operation of the High Pressure Acid Leach at Basamuk following an incident which killed an expat and injured two local employees.
Company president Wang Jicheng issued a memorandum last weekend authorising managers at the Basamuk refinery and KBK mine to issue letters and advise the status of employees who would see changes in their contracts.
“Ramu NiCo Management Ltd must institute rationalisation process across the business for its survival during this suspension period and this includes rationalising employee requirements,” Wang said.
He said the exercise would fall into three categories: some employees remain on duty to undertake mandatory activities, some will go home until the suspension is lifted and some employees will have their employment terminated.
KBK mine manager Sarimu Kanu said the project had incurred a huge financial loss during this period of low commodity prices.
The Mineral Resources Authority issued the order on April 15 following the death of a Chinese and the injury to two local employees on Tuesday April 12.