Oz Slashes 12% of Century Workforce
OZ slashes 12% of Century workforce
STRUGGLING miner OZ Minerals has sacked 135 contractors or 12% of the workforce at its Century zinc mine in Queensland.
Late last month, OZ ' which remains in a trading halt as it struggles to refinance its debt ' announced that the company's three-year plan was being changed to reflect the drastic fall in metal prices and higher costs.
Production at Century has already been reduced by 4% or 20,000 tonnes of zinc concentrate, but the company said at the time the mine's management would aim to maintain employment.
However, in a statement released yesterday, Century general manager John Lamb said the company has had to advise a number of its contractor firms that their services and staff were no longer required.
'Reducing operating and capital costs, changing our three-year plan to reflect reduced costs, and constantly adapting to changes in world markets, has not been enough to keep the business in the black,' he said.
Lamb said the company regretted the job losses but it was necessary to eliminate workers that were not absolutely essential to continuing production.
'Making decisions that cost jobs is always difficult, but they are driven by the need to ensure OZ Century survives this economic downturn and is around to take advantage of conditions when they improve,' he said.
Lamb said OZ remains committed to keeping as many people employed for as long as possible and encouraged workers onsite to avoid speculation and focus on the job.
OZ entered voluntary suspension on December 1 as it tackles its $A800 million debt problem.
The company announced last week that its cash on hand has been slashed from a previously reported $405 million as at November 30 to $279.4 million.
OZ is also facing legal action from shareholders claiming the company has engaged in deceptive and misleading conduct in regards to the rules of continuous disclosure.
The company's shares remain suspended at 55c.
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