It is reported that more than 2,000 employees at Chinese majority owned nickel producer and beleaguered Albidon Munali nickel mine South of Zambia resolved to return to work following protests against meager wages that paralyzed operations for close to a week.
Mine management refused to comment on the resolutions that led to the workers returning to work at the 56,000 nickel concentrate producing Jinchuan Mining Group owned mine, located more than 60 kilometers from the capital but workers said an amicable solution had been found.
According to the workers, informed about the developments at the mine said the workers decided to return to work following a meeting between management and workers representatives last Monday that agreed that workers’ pay would be revised to avert the mine halting production.
Since June 18th 2011, Munali nickel mine, owned by Albidon Mine with Jinchuan Mining Group owning 51.3% equity in the unit, has been hit by a spate of tremors that resulting in the mine suspending production at most of the underground operations awaiting assessment by designers of the mine.
A senior staff employee said that "The workers decided to return to work on Monday to allow management and the ministry of mines officials reach an amicable solution. The decision is mainly hinged on the workers being awarded 100% salary increment across the board and the final decision is expected before the end of this week. The workers have agreed to resume work to allow the two parties agree on the way forward. Naturally the salaries are very low at the mine and most of the workers are paid below USD 150 per month and the other conditions of services are not enough to meet the employees' needs."
On October 12th 2011, a shift of workers involved in the strike action at the mine decided to down tools, hence paralyzing operations at the already beleaguered mine, where management has reduced nickel production levels by 21% of the 56,000 tonnes forecast per annum after tremors.
The recent developments at the mines have prompted the management of the mines to call in the mine designers to re-evaluate the unit and ensure future tremors do not affect product. This action followed after a sink hole was discovered at the mine which affected ventilation at the unit, forcing management to suspend operations to save equipment and human lives.
Management was forced to close off some of the underground operations to ensure that no accidents or lose human lives were recorded awaiting the assessment of the mine designers that are currently working round the clock at the unit to ensure operations were not suspended.
According to some of the employees conversant with the problems at the unit, the workers are seeking a revised 100% wage increase and improved conditions of service arguing that the current salary structures and conditions of service were not normalized and incompatible with other mining companies, among others, Konkola Copper Mines and Mopani Copper Mines.
The workers are since demanding underground allowances, production bonuses across the board and review of long working hours and if workers were to, they are paid overtime allowances, which management had failed to respond in the affirmative for a while now.
Recently, the board of the parent Albidon Mining Company announced a series of measures intended to revive and capitalize the mine, which included raising equity of an average USD 20 million to sustain operations to prevent the mine from closing. Other conditions included restructuring the management at the mine as well as ensuring that the safety of the mines was secured for all employees.
During the revival of the mines by then President Rupiah Banda, management pledged to recapitalize the mines with USD 37 million after a debt swap with some of the creditors, including Barclays Bank Limited that saw Jinchuan raise its equity in the mine to 51.3%.
The revival of the mine, raised hope for management that eventually projected to raise nickel production to 900,000 tonnes per tone effective last year. Management had further projected to revise nickel outturn to 1.2 million tonnes per annum in the next two to three years as a measure to sustain the mine, Zambia’s sole nickel producer.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
