Kalumbila Minerals Limited KML says that reducing employee numbers will be the last resort after all other avenues of cost reduction have been exhausted.
KML director for operations Matt Pascall says this following the Tax regime changes that were announced in the 2019 budget presentation in September.
Mr. Pascall says the company’s major costs are taxes, electricity, maintenance spares, reagents, consumables and wages and salaries.
He has observed that all the costs have been subject to steady increases over the past seven years, even where some of the increases are in contradiction to signed agreements.
The Mine has however said that once the new mine tax measures take effect, the headcount at the sentinel mine is going to be reduced.
Mr. Pascall explains that the sentinel mine is doing everything it can to minimize its costs and consumption reagents, consumables, maintenance spares and labor and the only remaining avenue to reduce consumption is tonnage throughput.
He says once the new mine tax measures take effect, it will no longer be economically viable to run the sentinel mine at full capacity.
The Operations director says both the reduction of throughput and employee numbers will take place over a period of some months.

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