RBZ Freezes Prospect Lithium Zimbabwe (PLZ)'s Bank Accounts
Employees at Prospect Lithium Zimbabwe (PLZ) in Goromonzi are facing salary delays due to the freezing of the company’s bank accounts by the Reserve Bank of Zimbabwe (RBZ). The Chinese-run lithium mining company has been unable to remunerate its workers for their services in December. The company has promised that salaries may be paid between December 27th and 29th, but there is uncertainty regarding these dates.
Previously, employees received their salaries between the 20th and 25th of each month, along with hampers worth US$50 every three months, NewZimbabwe reported. However, the freezing of the accounts has also affected the hampers, leaving employees without food for their families during the festive season. This has caused discontent among the workers, who are now unsure if they will be able to celebrate the holidays properly.
PLZ spokesperson, Rugare Dobbie, confirmed that there are issues but did not provide further details. The situation is even more challenging for the employees as over 100 of them have been informed that their contracts will not be renewed in 2024 due to the company’s financial losses. The decline in lithium prices on the global market has resulted in the company operating at a loss, forcing it to reduce the labour force by approximately 164 employees from January 2024.
The fear of contract non-renewal has created a sense of vulnerability among the workers, making them hesitant to express their discontent or protest against the delayed salaries. They are concerned that any form of protest may further jeopardize their chances of contract renewal.
PLZ, a subsidiary of Prospect Resources, operates the Arcadia Mine, which holds one of the world’s largest hard-rock lithium reserves. The mine was acquired by Chinese company Zhejiang Huayou Cobalt Co Ltd for US$422 million in 2022, with an additional investment of US$300 million to build a lithium concentrate plant. The plant began exporting concentrates in April 2023. During the construction phase, PLZ employed around 1000 workers, with plans to hire more as production reaches full scale.
