Skorpion Zinc has a lifeline

The expansion of the Skorpion Zinc Mine's outsourced Pit 112 at Rosh Pinah must start immediately to extend the mine's life by three years, otherwise the mine will close by the middle of this year and 1 500 jobs will be lost.

A statement issued by Skorpion Zinc spokesperson Nora Ndopu says it is imperative that the work on Pit 112 begins immediately.

“Delays may have an impact on the technical viability of the project. Should the project no longer be viable, the mine will have to close, and all 1 500 jobs will be lost,” she warned.

Skorpion Zinc has outsourced the mining operations of Pit 112 to Basil Read Mining Namibia, a subsidiary of the South African firm Basil Read Holdings.

According to the company it does not have the heavy equipment needed to economically mine large quantities of waste material within the required time.

Ndopu said the outsourcing of the mining operations would make 278 employees redundant.

The general secretary of the Mineworkers Union of Namibia (MUN), Eben Zarondo, yesterday told Namibian Sun that the union's position remained the same and that the company should hire the necessary equipment instead of outsourcing mining operations.

“Why do they want Basil Read? Why do they not hire equipment, unless there is something that they are hiding and there is a pre-existing contract?”

He described the outsourcing as complete nonsense and said that “they should then just close the mine and go”.

Ndopu said the redundant workers would receive generous retrenchment packages from the company, well above the minimum required by the law, and they would be given preference for employment by Basil Read Namibia.

“Basil Read Namibia will be engaging over 450 employees for their operations at Skorpion over the next three years and there is the potential for employment thereafter,” she said.

These jobs are reserved for Namibians and preference will be given to former Skorpion employees.

“In other words, the new mining model will result in the employment of an additional 172 workers for at least three years,” Ndopu said.

“Skorpion Zinc management continues to engage with affected employees and the MUN for an orderly separation of the remaining employees, and to facilitate any necessary engagement with Basil Read Namibia,” said the general manager of Skorpion Zinc, Irvinne Simataa.

“We also appeal to all employees, the MUN and the Rosh Pinah community to work with us during this process and the timely start-up of the expansion work on Pit 112. We ask all stakeholders to look to the future rather than the end of Skorpion Zinc. The pit expansion gives us a lifeline of at least three years.”

He added that Vedanta Zinc International had committed resources for exploration and analysis to further extend the life of the mine beyond the next three years.

This includes possible underground mining of the oxide resource below Pit 112; conversion of the refinery to co-treat sulphide ores; the development of Gergarub (a joint venture between Skorpion and Rosh Pinah Zinc Corporation); and ongoing greenfield/brownfield exploration work in and around Rosh Pinah and elsewhere in Namibia which could lead to the discovery of new ore bodies. According to the company, employees have regularly been informed about the life of the mine and its impending closure over the past few years. Regular meetings were held with the union and the government too.

As per agreement with the union and government, the severance date for affected employees was initially extended from 28 February to 15 March, and more recently to 30 March, to allow more time for the company and union to seek an amicable outcome.

“Thirteen affected employees outside the bargaining unit have already willingly undertaken exit medicals and are in the process of separating as per the latest extended date. Further, the process of absorbing employees internally as per agreement with the unions is ongoing,” the company said.