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Saturday 23 November 2019

The unraveling of Tenke Fungurume Mining

So the project at Tenke Fungurume Mining (TFM) unraveled very quickly, the Chinese owners of the mine decided to demobilise all western expats and bring in cheap Chinese labour.


On international projects, government contracts and mining leases stipulate and expat to national ratio to train the national population to take over operations within a given timeframe. This is not what is occurring at TFM, the management is bringing in cheap (and largely unskilled labour) from China.

As Western expats, we are being moved out and replaced by cheap Chinese labour that has been found to be sub-standard. That happens, I can live with that as I possess a certain skill-set that makes me highly employable. However, the national workforce should be afraid - very afraid.

I place little respect in the Chinese management, they are generally low paid idiots that make embarrassingly poor decisions without any thought for consequences. However, one decision they made half right was to demobilise the expats in waves according to importance so the project didn't stop altogether.

So that left me some time to contemplate employment options, I was to be demobilised in the final wave of retrenchments. I counted less than 10 Western (white) expats remaining on site on my return from offshore R&R rotation.

So I used my time remaining to research and apply for positions, I was fortunate enough to be brought in for two interviews for a position in Botswana during my break. Whilst I never believe I have the job until the door is shut, armed and cross-checked and we have push-back.

They did mention positive steps such as a final telephone interview with the Project Manager and mailing official contract hard copy documents to the site I am currently employed. The HR recruiter asked if I could hang out a further 6 months on this project but I told her unlikely.

So, where do we go from here? Sitting at the departure area of Johannesburg OR Tambo International Airport waiting for my delayed SAA Express flight to Lumumbashi, I have no idea how long I have left. The initial hand-over from the contract maintenance team to an internalised model went well because of the expat planning and organisation.

That was a great experience for me, that required advanced planning, organising and project management skills. Now, in their rush to throw the Western expats out, the maintenance program isn't as stable as they think. Now the component replacement program is 40% behind plan, machines will soon be running components to failure, production will soon decline.

There were four maintenance divisions headed by four experienced expats, now the want to join four divisions into two large divisions and place under the control of two inexperienced and newly appointed national Superintendents to save money. What a brilliant plan nobody said ever, let's watch a $2.63 billion project be transformed into a $500 million project.

So now they are planning to restructure to save minor costs when major costs are looking to blow out of control. Not that this will worry me, I was well advanced in my negotiations for the Botswana project as this is the future and Tenke Fungurume Mining is soon to be the past.

It looked like I needed to find a short-term position to keep me busy waiting for this role to eventuate until that position fell through and it was time to start looking for work again. Just when you think you are comfortable, everything changes and your plans are thrown into turmoil.

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