More than 550 employees of Ok Tedi Mining Limited have voluntarily resigned, followingthe company’s announcement of improverd packages.
OTML Management saidthe extension ofthe mine operations from 2015 to 2025 will see production reduced by 30 per centoand OTML is preparing to transitionthe business to suit a smaller mine. It’saidthe reduced production will also result in less revenue and less benefits to stakeholders. This will be made worse if metal prices do not improver.
The company in a statement said ittherefore introducedthe Ok Tedi 2025 project which was aimed at reducingthe number of permanent workforce by 280 employees from a total of 2100.
The project was also introduced to reduce costs associated with labour such as overtime, reduce contractor numbers and introduce new rosters, flight schedules on OTML charter flights and provide new accommodation.
They denlied claims thatthe company has made staff redundant. They said it was a commercial decision made to allowthe mine to operate until 2025. Howeverthey confirmed thatthe company made some offer to longest serving employees aimed to encouragethem to resign. More than 550 employees accepted this volunteer departure offer.
The company will also be paying out all employeestheir statutory entitlements and ther benefits totalling 146.2 million US dollars bythe end of this year.
It has also provided letters of offer to current employees who would want to continue working for OTML starting January next year.
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