January 9, 2014 By Victoria Saffa
Cape Lambert Mining Company has reportedly sacked some 117 workers as part of a new cost cutting measure put in place by the Australian company to save an estimated US$2 million operational cost.
The company is reported to have agreed on this measure last week at a shareholders’ meeting.
The new plans were endorsed following a review of the company’s capital management strategy and projected expenditure, taking note of the recent deteriorating market conditions and the substantial fall in the price of iron ore.
Furthermore, the company has also taken the decision to postpone the second dividend payment to shareholders, which should have commenced on 27 February, a company source revealed.
According to Executive Chairman of Cape Lambert, Tony Sage, the company is in a strong commercial position, but was taking these “sound management” measures to protect the company in what is “a good iron ore project”.
Sage said the postponement is not a cancellation of the activity as the project had been granted two exploration licenses covering about sixty-six kilometers, estimated to host a joint Ore Reserves Committee complaint resources of some 681 million tonnes, grading 28% iron ore, of which 262 million tonnes are indicated and 419 million tonnes inferred.