Vedanta Resources Plc (VED)’s Zambian unit plans to cut 24 percent of its workforce after costs rose and the copper price dropped.
Konkola Copper Mines Plc will reduce the total number of employees at its operations in Africa’s biggest producer of the metal by 2,000 from 8,263, the Chingola, Zambia-based company said in an e-mailed statement.
Copper for three-month delivery has slumped 8.3 percent to $7,273 a metric ton over the past 12 months in London trading. KCM, as the company is known, said labor and electricity, its two key costs, have been “increasing constantly and substantially.”
“KCM needs to make business changes to remain economically viable,” it said. “Regrettably, this means reducing staff numbers as many of the upgrade and expansion projects come to an end.”
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