Mimosa hit by metal price decline, retrenches Managers and Supervisors
Mimosa, Zimbabwe’s second largest platinum-producing mining company, recently undertook a significant workforce reduction, retrenching 33 managers and supervisors due to a persistent 35% decline in metal prices since April 2023.
In response to the challenging market conditions, nine of the affected employees opted for early retirement, while 24 chose voluntary separation packages, as detailed in a company statement released on the 5th of February 2024.
“Metal prices have been on a downward trend since April 2023 and remain depressed to date, having decreased by up to 35% during this period. This decline has significantly impacted our cash flow and profitability, and the outlook suggests that prices will continue to remain depressed in the medium term,” the statement read in part.
The company said its taking steps to minimise impact including capital expenditure curtailment, cost reduction initiatives, and cash conservation efforts among others.
“In response to these challenging market conditions, we have implemented several measures to ensure the viability of our business in the low-price metal environment. These proactive steps include capital expenditure curtailment, cost reduction initiatives, and cash conservation efforts,” the company said.
A voluntary separation package was offered to twenty-four employees, while nine opted for early retirement.
“Furthermore, given the prevailing economic landscape, we found it necessary to review our staffing structures to optimize efficiency. As a result, a staff rationalization exercise was conducted, affecting thirty-three managerial and supervisory employees. To address this, a voluntary separation package was offered to twenty-four employees, while nine opted for early retirement. At this stage, no further rationalization of the permanent staff complement is planned,” the company continued.
It is crucial to emphasize that people remain the most important asset of our business, defining who we are and serving as the primary source of our success. Despite the challenges, we have actively engaged our employees in all the processes implemented, fostering a sense of unity to maintain morale and continue achieving our production targets.