RAMU NiCo Management (MCC) Ltd is conducting a rationalisation exercise for its employees at its two sites, Kurumbukari Mine and Basamuk Refinery in Madang Province.
The exercise follows after the Mineral Resources Authority (MRA) issued an order for the Company to cease operations of the High Pressure Acid Leach (HPAL) area at Basamuk operations, including the withdrawl of persons working within the HPAL operational areas.
Company president Wang Jicheng issued a memo over the weekend authorising the registered managers at Basamuk Refinery and KBK Mine to distribute letters and advise the employees who will 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.
The president said the exercise will fall into three categories; some employees remain on duty to undertake mandatory activities, some will go home until suspension is lifted and some employees will have their employment terminated.
When meeting the supervisors and managers at KBK Mine yesterday, KBK mine manager Sarimu Kanu said the project incurred a huge financial loss during this low commodity price crisis but decided to retain all its employees until the unfortunate fatality and incident at Basamuk Refinery.
MRA issued the order on Friday, April 15, following the loss of a Chinese employee and injury of two PNG national employees on Tuesday, April 12.
The mines inspectors order requires Ramu NiCo to provide a third party, internationally reputable person/s to detail an investigation report of the incident, establish root cause failure analysis and recommend future establishment of applicable control measures.
Kanu said HPAL is a critical production installation and its cease of operation inevitably affects all production sections until requirements set by MRA are satisfactorily met.
The two sites are currently evaluating employees on objective criteria to determine their performance, attendance and other measures to allocate the suitable rationalisation category to apply.
“Management knows that this rationalisation will inconvenience you and your family but the financial situation presents us with no choice.
“Ramu NiCo is placing urgent priority on completing rectification works required and getting the operation running quickly. Your understanding and support in this difficult time is appreciated,” the president said.
The number of employees who will be affected has not been finalised yet.