Basil Read strike cost Skorpion N$317m

SKORPION Zinc has lost about N$317 million (US$20 million) because of an industrial strike by Basil Read workers. Basil Read was contracted by Skorpion Zinc (SZ) to execute the Pit112 pushback project as a mining life extension project. The strike put the project 14 days behind schedule.

This was stated by SZ general manager Irvinne Simataa in a media release last Friday. Simataa said this has placed a huge risk on the viability of the business with the temporary closure of the refinery due to the plant running out of material to treat. This is because of the impact it had on current ore stock levels, and the lead time to restart mining operations.

The general manager stressed that this in itself could result in the restructuring and/or premature closure of the operations. Without this life extension project, SZ would have ended its operations in 2017.

SZ announced in that statement that Basil Read employees have, however, reported to work.

SZ added that they continued to raise their concerns that work stoppages such as these would have an enormously negative impact on the business. Moreover, this has been the third disruption in the past seven months.

“We implore all workers, be it SZ employees or our business partner Basil Read’s employees, to remain focussed and committed to ensure an expedited resolution to all outstanding issues so that everyone works together to see the delivery of the Pit 112 project, and avert the premature closure of SZ. We reiterate the call on the leadership of the Mineworkers Union of Namibia to engage with Basil Read and with SZ through the existing channels to ensure that the situation is resolved as rapidly as possible, and avoid future business disruptions/stoppages,” Simataa said.

The Namibian reported earlier that hundreds of Basil Read workers at Skorpion Zinc had gone on a wildcat strike over alleged discriminatory employment benefits about two weeks ago.

The workers went on the illegal industrial action over alleged salary inequalities based on colour and race.

They had also accused the company of “using overtime to inflate the salaries of some employees,” while claiming that only employees working at the mine’s plant receive housing and remote areas allowance benefits.

According to the workers, foreigners are also employed as surveyors and finance managers at the expense of qualified Namibians.

They further claimed that the company was giving white workers “discriminatory preferential treatment” by letting them live in houses, while black workers have to take up residence in a camp.

MUN’s southern regional chairperson Shavuka Mbidhi confirmed to The Namibian last week that the workers had called off the illegal industrial action, saying mining operations had resumed at the Skorpion Zinc mine on Tuesday.

“We told them (workers) that it was dangerous to be on an illegal strike, and convinced them to return to work while we are sorting out their grievances,” he stated.

– charmaine@namibian.com.na, Twitter: Char_Ngatjiheue.

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