A report published today by Zimbabwean newspaper News Day reveals that 127 former Anjin Investments employees owed some $407,442 in termination benefits won’t receive payments anytime soon. According to the paper, their application was removed from the roll at the High Court pending Anjin’s Constitutional Court challenge against the State.
The workers’ contracts were terminated following a 2016 official order to halt all mining in Chiadzwa, so that a newly created state-owned company, Zimbabwe Consolidated Diamond Co., could to take over operations.
Later on, in March 2016, Anjin sought the intervention of the high court alleging a breach of the company’s Chinese stakeholder’s rights protected in the Agreement of Encouragement and Reciprocal Protection of Investments between the governments of Zimbabwe and China.
Following these events in 2016, Anjin employees filed an urgent application seeking to push the company to fulfill the terms of the mutual termination agreement. They argue the mine is no longer going to resume operations in Chiadzwa. “Notwithstanding the conclusion of the case between defendants and the government, defendant has not paid the amounts that are due to plaintiffs (employees),” the application reads.
However, in its submissions, Anjin argues that “the abrupt cessation of operations” resulted in the company not being able to earn any income. The Chinese firm also states that it will pay its formers employees upon the conclusion of the court proceedings against the minister of Mines.
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Source: Mining Gold