Job cuts loom as Fluorspar firm plans to halt mining operations

Hundreds of employees working at the Kenya Fluorspar Company (KFC) will be rendered jobless in April as the firm is set to suspend its operations citing weak demand for the mineral.

The company, through a public notice, has announced that it will terminate the services of its employees across all levels following a slump in prices of the commodity that has led to the suspension of its mining activities.

The firm’s managing director, Nico Spangenberg, said the collapse in market conditions over the last six months has made KFC's operations unsustainable.

“A prolonged global slump in commodity prices has negatively impacted extractive business around the world, including Kenya Fluorspar. Low demand and prices since 2012 has led to losses for the last three years,” he said in a statement.

While the notice takes effect from April 30, Mr Spangenberg said that the company remains committed to the mine and is confident that conditions will change and operations will restart.

The factory had resumed operations in August last year after suspending its activities in June citing the same reasons.

READ: Hope for workers as Kenya Fluorspar resumes operations

During the June suspension, the firm sent temporary workers home while permanent staff were deployed to other company assignments.

KFC operates its mine on 9,070 acres under a special mining lease that expires in 2016 from where it generates approximately 500,000 tonnes of crude ore.

The firm employs approximately 370 full time workers and 250 contract workers.

The mineral, which is wholly exported, is used in making of glassware and air conditioning systems.

The government established the then Fluorspar Company of Kenya (FCK) in 1971, before it went into receivership in 1979. It is now privately owned by a firm based in Canada and the US.