Additional Information
Market: TSX JSE
Sector: General Mining
EPIC: FIU
Latest Price: 0.00  (0,00%)
52-week High: 0.00
52-week Low: 0.00
1 year chart
1 day chart
First Uranium
www.firsturanium.com

First Uranium Corporation (TSX:FIU, JSE:FUM) operates South Africa's newest uranium and gold mine - the Ezulwini Mine - which includes a Mine Waste Solutions tailings recovery facility.

First Uranium seeks approval for job cuts at Ezulwini Mine

19th Dec 2011, 11:53 am by Joyanta Acharjee
First Uranium seeks approval for job cuts at Ezulwini Mine

First Uranium (TSE:FIU)(JSE:FUM) said Monday that it will seek approval to reduce staffing and cut costs at its Ezulwini Mine in South Africa, as it struggles with production issues at a site that has seen three fatal accidents this year.

The company, which has seen its shares fall by about 86 percent for the year to date, said its plan could affect almost half of the 3,745 workers at the mine.

Monday, First Uranium shares were down five percent to $0.175.

First Uranium will seek approval for the job cuts under the South African Labour Relations Act, the company said in a statement.

The company's operation at the Mine Waste Solutions tailings reprocessing project is not involved in the process being undertaken at the Ezulwini Mine.

First Uranium president and CEO, Deon van der Mescht, said: "While the company continues to believe in the inherent value and potential of the Ezulwini Mine, decisive action is required in order to stem ongoing operating losses.

"Although it is the holiday season and the timing is unfortunate, management has determined that action must be taken now to mitigate the effects of the Christmas shut down and provide employees with an opportunity to increase productivity levels while reaching a consensus around the nature and scope of changes necessary to implement the new operating plan."

The mine has been the site of several accidents, including one in September which killed a drill operator -- the fourth death in the last 15 months.

"The extremely unfortunate fatal accidents in the latter half of the calendar year have had a significant impact on employee morale and productivity, and as such the expected improvement in production has not been forthcoming," van der Mescht said.

The new operating plan for the Ezulwini Mine will focus on safety and improving mine efficiency, the company said.

First Uranium is a gold and uranium producer. In November, it posted a loss of $30.6 million, or 14 cents per share, compared to a year-earlier loss of $58 million or 32 cents per share.

Revenues rose 62 percent to $50.2 million from $30.3 million in the year-ago period.

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here