Sandawana Mines, a subsidiary of Kuvimba Mining House, says about 300 workers have been let go as a result of falling price of lithium on the international market, it has been learnt.
This was confirmed by Sandawana Mines general manager Godwin Gambiza who said the resources firm had to take cost-cutting measures “to protect the business”.
It follows a decline in lithium prices on the global market.
“So, as a result of that, some measures have been taken to protect the business resulting in the curtailing of operations so that we survive on the stockpiles we have accumulated.
He said that the miner had amassed about a million tons of ore over time and could not afford to keep spending money when there is now no market for the product.
Prices for lithium have dropped by 80%, while those for lithium ore have dropped by 2%–2.5%.
To keep to 700 contractors, Sandawana had to reduce that figure by 300.
As the primary raw material for batteries, lithium has been in greater demand than supply over the past few years as a result of the global drive for electric vehicles.
Global market analysts had, however, cautioned about the possibility of falling mineral prices as early as last year.
A shaky economic future in the world’s biggest nations and escalating geopolitical tensions were blamed for the drop in lithium prices globally. – (Business Times)
