Over 900 Sierra Leoneans May Lose Jobs as Marampa Mines Begins Restructuring
Deborah Sorie Marampa Mines Limited is reportedly preparing to cut about 925 jobs as the company restructures its operations amid challenges in the global iron ore market.
Reliable sources have told Sierraloaded that mining company, which employs about 4,200 workers, could reduce its workforce to approximately 3,275 employees.
The reported redundancy exercise is expected to affect mainly non-permanent staff, as well as some permanent employees.
The reported job cuts come after Marampa Mines announced a restructuring programme, which it calls the “Marampa Reset”, citing weak iron ore prices, high freight costs and operational challenges.
In a business update issued to staff on September 22, the company said its operations have also not yet achieved the consistency required to sustainably reach its targeted M3.75 production level at competitive costs.
Chief Executive Officer Paul Lombard and senior executive Angula Kalili described that the restructuring programme is aimed at stabilising the business, improving efficiency and aligning its cost structure with current market conditions.
“Before we can grow, we must first ensure the survival and stability of the business, improve our operational performance and achieve a sustainable M3.75,” management said.
According to the company, Marampa previously built its organisational structure and cost base around long-term expansion plans. It said the current market situation has forced a shift from expansion to sustainability, with the immediate priority being to protect the business.
The company said the restructuring would begin with senior leadership and expatriate positions before extending to the wider workforce, but did not publicly confirm the reported figure of 925 job losses in the statement cited.
Marampa Mines said employees affected by the restructuring would be informed through established procedures and that the process would be handled with “clarity, dignity and respect.”
The company also said it had been engaging the Government of Sierra Leone and other stakeholders over the financial challenges affecting the mine and measures needed to restore its competitiveness.
Meanwhile, the Ministry of Mines and Mineral Resources has held discussions with Marampa Mines on the company’s financial position and the future of its operations.
According to the ministry, the meeting reviewed the company’s financial health, the challenges affecting its operations and possible measures to strengthen its sustainability and continued contribution to Sierra Leone’s mining sector.
The government said the engagement reflects its commitment to maintaining dialogue with mining companies and addressing challenges affecting the sustainability of mining operations.