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The Indian-owned mining company, Vulcan Mozambique, has promises to respond to the demands of its striking workers by Friday.
Vulcan Mozambique is the new owner of the Moatize coal mine, in the central province of Tete which it recently acquired from the Brazilian mining giant Vale.
A press note from Vulcan confirms the partial stoppage of activities due to workers going on strike in sections 1 and 2 of the Moatize Mine.
The workers downed tools a week ago, on 11 May. They are demanding an addendum to their work contract, plus a wage increase.
“At this time, it is not yet possible to account for the losses in financial terms”, says the note, adding that the company has already held talks with the group of workers, in order to listen to their demands.
“After talks with the workers, the company, through the Provincial Labour Directorate, has guaranteed the resolution of the trouble by 20 May”, the note said. It claimed that only about 10 percent of the workers, out of a total work force of 5,300, joined the strike.
Vulcan claimed that it has always been and continues to be open to dialogue in order to make efforts to address workers’ concerns. It stressed that there was no destruction or vandalizing of equipment, but the strike did not follow the legal procedures.
Vulcan Mozambique says its goal is to ensure the continuity of coal mining operations in the country, based on a strong commitment to its values, giving priority to people and the communities around them.
At the beginning of May, Vulcan Resources, which recently purchased Vale’s assets in the Moatize coal mining project and the Nacala Logistics Corridor, expressed its commitment to maintaining operations in the business, including making new investments.
Vale, which had operated in Mozambique for 15 years, concluded the sale of its assets for the sum of 270 million US dollars, and from this deal it is expected that Mozambican state will receive around 20 million dollars in capital gains tax
Vulcan, which is already operating the Chirodzi mine, also in Tete province, is part of the Jindal Group.