The news comes a month after the
company’s chief operating officer resigned, following poorer-than
expected production in the third quarter. The largest proportion of the
cuts were at its Bulyanhulu mine in Tanzania, the company said in a
statement.
Acacia, which has been attempting to
turn its finances around since 2013, said it would save about $25
million per year, prior to restructuring charge of about $11 million
predominantly in 2015.
The moves “will help to ensure that we
are able to generate sustainable positive free cash flow in 2016 and
beyond, and do not experience a recurrence of the unacceptable cash
outflow we saw in Q3,” Chief Executive, Brad Gordon said in a statement.
“The largest proportion of the role reductions are at Bulyanhulu, but
all of our mines and offices will be affected.
As part of this process Acacia has
fulfilled all local legislative requirements and is committed to
minimising any employee hardship; as such we have put in place support
services to assist those affected,” it said in a statement.
The latest job cuts follow on from the
miner’s plan to change its mine plans to make the operations more
economic, including moving Gokona to an underground mining operation
from an open put operation in seek of higher grades.
Chief Executive, Brad Gordon said:
“These, and the other planned changes, will help to ensure that we are
able to generate sustainable positive free cash flow in 2016 beyond and
do not experience recurrence of the unacceptable cash outflow we saw in
the third quarter.
The majority of those employees affected
have already left Acacia, with operational performance continuing to be
in line with plan for the quarter.”
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