However, management has moved swiftly to try and dispel their fears.

A letter went out to all employees this week announcing that overtime work would be very limited in future and labour hire eliminated.

David Salisbury, Rossing's Managing Director, told The Namibian late yesterday that the measures were necessary because of the strengthening of the South African Rand - less than R7 to the US dollar this week.

"We need to get a grip on costs and make sure we preserve our cash," he said.

However, Salisbury said concerns and rumours that started flying around Swakopmund soon after the letter was issued were unfounded.

"No Rossing employees will be losing their jobs as a result," he said.

But he added that the decision might affect some casual labourers.

"We will honour our existing contracts [on labour hire], but no new contracts will be made".

He said the mine would only know by next week exactly how many contract labourers might be affected by the decision.

As for overtime, Salisbury said employees on the four-panel shift in the open pit, who were required to work on Saturdays and Sundays, would still be paid overtime.

"It only means that maintenance employees would no longer be called out over weekends for breakdowns.

When we have down time in future over weekends, it would have to wait until Monday to be fixed".

The mine will take a critical decision on its future at the end of the year or early next year.

The decision will determine whether the mine will close down in 2007 or continue operating for another 14 years.

Salisbury said earlier this year the main determining factor in this decision would be the performance of the Rand.

Exporters have suffered huge losses so far this year because of the strengthening of the Rand.

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