Indian-owned mining company Vulcan is to lay off around 350 workers from its operations in Moatize, in Tete province, central Mozambique, later this year.
The information is contained in an internal circular from the company’s trade union committee, which confirms the start of the collective redundancy process, covering professionals in different categories.
“The redundancy process will initially involve 350 workers from various professional categories,” the document states.
Without detailing the reasons for the measure, Vulcan indicated that the number could be adjusted depending on the formal validation of the process by the Labor Administration authorities. “It is estimated that 105 workers will be covered by this measure in the next few days,” adds the circular.
Vulcan operates in an area of 250 square kilometers in Moatize, with the community closest to the mines located at least 350 meters from the exploration area. The company belongs to the Indian group Jindal, whose market value is around 18 billion dollars (1.1 trillion meticals), and already operated the Chirodzi mine, also in Tete province.
In April 2022, Vulcan acquired the mining operations in Mozambique from Brazil’s Vale, in a deal valued at more than 270 million dollars (17 billion meticals). Since then, it has produced an average of 35 million tons of coal a year and by 2024 it expected to reach between 50 and 52 million tons a year, ranking it among the world’s largest producers in the sector.
O País
