MINING company Kagara Ltd is today likely to announce further staff cuts in North Queensland as it restructures in a bid for survival. The base metals miner appointed voluntary administrators on Sunday, blaming plunging zinc and copper prices, rising production costs and a strong Australian dollar for its poor financial performance. The company last month laid off 130 workers in North Queensland, where it has suspended operations near Mt Garnet, and in Perth, but more job losses will be announced this week as administrators begin restructuring its financial arrangements and operations. "That will involve further redundancies over the next day or so," administrator Michael Ryan, of Taylor Woodings, said. Two other administrators were at the Mungana and Thalanga sites yesterday to speak with employees about the voluntary administration process, the plan to save the company and employee entitlements. Kagara Ltd has 325 staffers across Australia, most of whom are in North Queensland. The first creditors’ meeting will be held in Townsville on May 9, with dial-in venues available in Cairns for affected businesses and contractors. Mr Ryan said the voluntary administration process was designed to give the company breathing space and protections to make "considered" decisions about the future of the company. He said all relevant stakeholders would be kept advised on updates. Kagara Ltd is a shareholder of Mungana Goldmines Ltd but Mungana managing director Patrick Scott said the gold project near Chillagoe would continue as planned. "(Kagara) owes Mungana $3.8 million," Mr Scott said in a statement yesterday. Kagara Ltd’s shares have been suspended from trading since April 20. The company’s shares have plunged by more than 68 per cent in the last three months.
KZL Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
