Dar es Salaam — Acacia Mining is laying off about 100 people before the end of this year.
That is happening at a time when the company is planning to close down its Buzwagi Gold Mine.
An internal memo, released on May 15 (a copy of which The Citizen has obtained), quotes Buzwagi Gold Mine general manager Stewart Hamilton as saying that the company will stop the mining activities at the site in December this year while other plant processes will cease in 2020.
"According to our plan on the closure of Buzwagi Mine, we have decided to reduce the number of our manpower by 100 as an initial stage of the total closure in 2020," he said. Barrick Gold purchased the Buzwagi Mine in 2000.
The feasibility studies of the mine were completed in 2006 while the development of the mine began in 2007 and was completed in 2009. Then, it was being estimated that the mine would be shut down in 2022.
Mr Hamilton said in the memo that the company was still assessing the employees to be first affected by the layoff plan so that its implementation leaves no impact on the company's performance.
According to him, those to be affected by the process will be selected from different departments.
"The top management team is meeting for two weeks with different departments, effective this week to assess the possible consequences of the move," he added.
Acacia Mining public relations officer Nector Foya confirmed the move to The Citizen on Tuesday, noting however that though mining activities would cease in December, the company's operations would continue until 2020. "We are negotiating with our employees so that they are aware of what is going on. Those to be affected will be paid in accordance with all the relevant agreements," she said.