BNC retrenches 300 employees

HARARE - Bindura Nickel Corporation (BNC) says it has retrenched 300 employees as a cost-cutting measure under the current harsh economic environment.

The Zimbabwe Stock Exchange-listed miner’s chairman, Yim Kwan, said the company is now outsourcing development services in the mining department to a contractor company, with effect from June 2016.

“This has resulted in cost savings worth $400 000 which would otherwise have been incurred in retrenchment costs.

“A new culture, anchored on the principle of improved accountability, is emerging,” he said at the company’s annual general meeting last week.

Market experts said the latest development is likely to compound the country’s already high unemployment rate amid massive company closures and retrenchments.

The southern African nation is experiencing its worst economic crisis since the hyper-inflationary period that peaked in 2008, when inflation soared to 500 billion percent, according to the International Monetary Fund.

Now, after it switched to use of the United States dollar in 2009, a shortage of currency, deflation and unemployment of about 90 percent have plunged the country back into crisis.

Zimbabwe owes foreign and domestic institutions about $9,6 billion and failed to make a $1,8 billion payment due to lenders in June this year.

Finance minister Patrick Chinamasa recently said the government is considering cutting 25 000 state jobs, deferring civil service bonuses for 2016 and 2017 and closing some embassies in an effort to save money.

The moves could save Zimbabwe at least $335 million annually during the next two years and reduce the proportion of salaries to total revenue to 75 percent from the current 97 percent.

Kwan, however, said BNC has embarked on building its skills base through various initiatives which include the recruitment of graduate learners in key disciplines across the business as a way of ramping up production.

“The newly-introduced performance management system will assist in identifying skills gaps and focused training and development in critical areas of the business,” he added.

In a market update, Kwan said the Asa Resources Plc subsidiary sold 2 852,17 tonnes of nickel in the first five months of the year — a 53 percent increase compared to the same period in 2015 where 1 864 12 tonnes were sold.

Comments (2)

2.2mill jobs in the making ... 3 years down the line, its still dololo!

Jonathan Musorobhangu wekuchekeresa mwana - 30 September 2016

2million jobs food for thought surely its a pie in the sky kkkkkk instead mabasa akutopera wena

pogba06 - 30 September 2016

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.