Antinuclear

Paladin uranium company’s losses: cuts staff in Malawi, Namibia and Australia

According to KYJD Publicist Stevenson Simusokwe, PAL had promised the
people of Karonga a referral hospital, good road network in the district
and free water.
But from the retrenchment statement, dated January 24 2013, PAL says it
has been operating at a loss and further adds that circumstances beyond
its control have led to the decision to trim down its staff not only at
Kayerekera but also at its Langer Heinrich Mine in Namibia and at the
company’s head office in Australia.

The company has been able to remain in operation only due
to continued financial support provided by the parent company, Paladin
Energy Limited.

Paladin to cut Malawi staff at Kayerekera mine by 18 percent 25
January 2013   The Maravi Post, by PIUS NYONDO
MZUZU–-Paladin Africa Limited (PAL) says it will reduce the number of
employee at its Kayerekera Mine (KM) in Malawi’s border district of
Karonga in response to economic hardships caused by dwindling uranium
prices on the global market, MaraPost has learnt.

In a press statement made available to MaraPost Thursday, PAL General
Manager Greg Walker says following a review of manning levels at its
operations, the company is reducing its Malawi national workforce by 100
people, from 613 people employed to 503, representing an 18  percent
staff reduction.

Ironically, the development comes a few months after some Karonga-based
non-governmental organisations led by Karonga Youth for Justice and
Development (KYJD) which called off a protest against PAL, claming the
company was “not doing enough in as far as its social corporate
responsibility towards the development of Karonga and the entire Malawi
nation at large is concerned.”

The protest, which was aborted at the eleventh hour late last year, was
aimed at putting pressure on PAL so that it could “fulfill promises it
had made to the people of Karonga.”

According to KYJD Publicist Stevenson Simusokwe, PAL had promised the
people of Karonga a referral hospital, good road network in the district
and free water.
But from the retrenchment statement, dated January 24 2013, PAL says it
has been operating at a loss and further adds that circumstances beyond
its control have led to the decision to trim down its staff not only at
Kayerekera but also at its Langer Heinrich Mine in Namibia and at the
company’s head office in Australia.

“Despite achieving its best production results to-date in the December
Quarter, when KM produced 772, 280Ib of uranium oxide, PAL continues to
operate at a loss, as it has done since the commencement of production
in July 2010. The company has been able to remain in operation only due
to continued financial support provided by the parent company, Paladin
Energy Limited.

“Expatriate positions are also being reduced-by 24 percent-from 118 to
90. The company has advised the Ministry of labour of Labour of this
move; informed the KM Local Staff Association (LSA), which represents
national employees, and notified its workforce,” reads the statement in
part.

The statement further mentions that PAL has worked hard on a number of
cost reduction measures to reduce company losses citing a
nano-filtration project that will provide for more efficient use of acid
in the production process and the switchover to commercial ESCOM grid
power as an alternative to the high cost of on-site diesel generation.

“These two projects, if successful, will provide substantial cost
reductions (potentially in the order of US$5-8/Ib), but they are not
expected to be completed before late 2013, at the earliest.”

PAL, however, assures all who would lose their jobs that it will
mitigate the effects of its decision on her employees. Among other
things, the employees will paid up to the end of the month of January,
one month’s salary in lieu of notice-for the month of February which
will include the value of benefits as applicable to the employees
concerned and the value of any leave credits that they have at the time
of retrenchment.
Adds the statement: “PAL has also engaged the services of a Malawian
company which specializes in providing advice and counseling to affected
employees. The company will consider retrenched employees for
re-employment if redundant positions are ever re-established at KM. Any
other arising vacancies need to be filled on the basis of skills
suitability and these employees will be considered-if they apply for
other positions-on the basis of their suitability and against that of
other candidates who may apply at that time.”

January 27, 2013 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, business, uranium