Industry News by Nemesis

Murowa Diamonds in Cost-Cutting Drive as it Cuts Workers’ Salaries, Allowances

February 18, 2016

Murowa Diamonds, a unit of RioZim, has reportedly lowered salaries and allowances for its workforce as part of cost-cutting measures in the wake of falling diamond prices.

 

Murowa recorded a loss of $573 000 in the half year to June 30, 2015. 

 

The Financial Gazette quoted company spokesperson Lovemore Chimuka as saying that the cut was essential to ensure the business does not go under.

 

"Like any other mining business, when commodity prices fall you initiate survival strategies which usually are along(the lines of) cutting costs, streamlining and making sure you still get value from those falling prices,” he said.

 

“We are, however, confident as a mine that the prices will rebound. We have streamlined in cases where we had high expenditure and we went further to cut salaries and allowances, a development which had input from our employees."

 

No details were provided concerning the extent of the salary and allowances cut.

 

Murowa recently indicated that it acquired mining equipment worth about $6 million as part of a $60 million investment that would be injected into the business for the next four years as Rio Zim seeks to expand operations at the mine.

 

Source: Rough&Polished

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