RAMU NiCo Management (MCC) Ltd last week conducted a rationalisation exercise for its employees and had to lay off 240 national workers.
From the 240 workers, 189 are on stand-by until the project resumes operation while 51 workers were laid-off on disciplinary grounds. They are from both Basamuk Refinery and KBK Mine sites.
“Those laid-off have been paid off their full entitlements under their individual contracts and those on stand-by will receive certain allowance,” the Company said in a statement.
“The exercise is due to our financial situation given the cease order now in place. We have followed all the laws and policies to carry out the exercise,” the Company said.
A total of 520 nationals are currently retained to maintain the sites and carry out relevant maintenance work on mobile equipment and general maintenance work.
“We have also reduced our Chinese employees significantly from both sites, some laid off while others on stand-by. Those who went for holidays have been advised to stay back in China,” the Company said.
MRA Mines Inspectorate issued an order to cease HPAL (high pressure acid leach) operation at Basamuk Refinery on Friday April 15 following a fatality of a Chinese employee and injury of two national employees at the Refinery on Tuesday April 12.
It’s more than four weeks since the Project operation shut down and the duration of the shut down is uncertain and depends on the incident investigation outcome by an independent third party and rectification approval by MRA.
KBK Mine management led by Mine Manager, Sarimu Kanu this week met with the mine impacted landowners and advised them of the exercise implemented and asked the community leaders to support the project at this difficult time.
“The exercise is purely based on our financial situation that can take us up to at least three months. Those who have been laid-off are on disciplinary grounds and that's reasonable but we try to retain other employees as much as possible,”Mr.Kanu said.
KBK Community leader, Bare Diri said the landowners do not wish to see Ramu NiCo Project closed permanently and asked the Company to work closely with the Government through its implementing agencies including MRA to find ways forward for a win-win situation.
“We support the project and all we can do now is to conduct awareness in our villages and tell people of the current situation so we can all work together,” Bare said.
Company President, Wang Jicheng authorised the registered managers at Basamuk Refinery and KBK Mine to issue letters and advise the status of employees last week.
“RamuNiCo Management Ltd must institute rationalisation process across the business for its survival during this suspension period and this includes rationalising employee requirements,” Wang said.
Picture: Mine trucks grounded at Ramu NiCo’s Kurumbukari Mine in Madang