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ENRC to cut over 2,000 mining jobs in Congo-union

Published 2016-03-02, 12:33 p/m
© Reuters. ENRC to cut over 2,000 mining jobs in Congo-union
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KINSHASA, March 2 (Reuters) - Kazakh group Eurasian Natural
Resources Corporation is cutting more than 2,000 jobs at two
mining companies it controls in Democratic Republic of Congo, a
union representative said on Wednesday.
The company, owned by Eurasian Resources Group, plans to
shed 996 jobs at its Boss Mining unit and 1,300 at Congo Cobalt
Corporation (CCC) in the country's copper-rich southeast, said
Dieudonne Shimbi, the provincial coordinator for TUMEC, one of
the unions negotiating on behalf of the workers.
CCC is wholly-owned by ENRC, which has a 70 percent stake in
Boss Mining. Congo state miner Gecamines holds the remaining 30
percent. ENRC did not respond to requests for comment.
Shimbi said that an initial phase of buyouts had started on
Monday. He added the company would begin lay-offs within a month
if enough of Boss Mining's more than 4,000 and CCC's 1,700
workers do not leave voluntarily.
"Based on where the price of copper is today, the employer
justified that it was practically operating at a loss," Shimbi
said.
The benchmark copper price CMCU3 fell 25 percent last year
on declining demand from top industrial metals consumer China.
It has recovered slightly this year, closing on Wednesday at
$4,792 a tonne, the highest level since Nov. 16.
Congo, Africa's largest copper producer, saw output dip
modestly in 2015, according to the country's chamber of mines,
due to slumping prices and the 18-month suspension of production
at Glencore 's GLEN.L Katanga Unit, announced in September.
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Congo's economy is heavily dependent on the extractive
industries, which account for some 98 percent of the country's
export revenues.

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