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Tanzania’s Pangea Minerals Limited (PML) has announced it will reduce its workforce next month, in an attempt to cut operating costs.

PML is owned by Acacia Mining.

“Extraction operations in the mine will come to an end by 2020. The new cut will include employees in sections that are no longer operating,” said PML general director Benedict Busungu yesterday.

He said Pangea was in talks with its employees to ensure they were provided with their requisite work compensations.

“I don’t know the exact number of employees whose contracts will be terminated. We will continue with the assessment to reduce the workforce.”

It is the second reduction to Acacia’s workforce after the company, whose majority shareholder is Barrick Gold, in 15 September, 2017, reduced its number of employees by 2 000.

The company is in dispute with Tanzania over tax payments and was caught up in sweeping changes to the country’s mining industry spearheaded by President John Magufuli.

This comes after the government imposed a ban on exports of gold and copper concentrates in March, 2017.

Acacia had said it would need to consider cutting operations if the ban of concentrates was not lifted by the end of the third quarter.

 

 

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