Dec 19 (Reuters) – First Uranium said it will
seek approval to reduce workforce and cut costs at its Ezulwini
Mine in South Africa, as it struggles with production issues at
a site that has seen three fatal accidents this year.
The company, which has seen its shares fall by about 86
percent this year, said the plan could affect almost half of the
3,745 workers in the mine.
It will seek approval for the job cuts under the South
African Labour Relations Act on Monday, the company said in a
statement.
The mine has been the site of several accidents, including
one in September which killed a drill operator — the fourth
death in the last 15 months..
“The extremely unfortunate fatal accidents in the latter
half of the calendar year have had a significant impact on
employee morale and productivity, and as such the expected
improvement in production has not been forthcoming,” the Chief
Executive Deon van der Mescht.
The new operating plan for the Ezulwini Mine will focus on
safety and improving mine efficiency, the company said in a
statement.
Shares of First Uranium closed at 18.5 Canadian cents on
Friday on the Toronto Stock Exchange.
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