The Management of China Union Investment, (Liberia) Bong Mining Company, LTD has refuted reports that it has gone bankrupt and planned on closing down its mining operations in Liberia.
China Union also added that the investment is financially capable of continuing its mining activities in the country.
In an exclusive interview with this paper recently in Monrovia, Public Relations Manager Mr. Allen Fu said China Union is financially strong and viable and has not reached any point in its operations where it has gone bankrupt.
The company’s statement comes in the wake of reports that China Union has gone bankrupt and it was selling off its assets to other foreign companies that have expressed interest in taking over the mining concession.
“We are far away from being bankrupt and our company holds several meetings to discuss how to reform the company structure which aimed at keeping costs down and efficiency improvement,” Manager Allen Fu emphasized.
Manager Allen Fu added that China Union is the second largest mining company with an investment portfolio of US$ 2.6 Billion dollars, next only to Arcelor-Mittal in Yekepa, Nimba County.
Mr. Allen Fu further pointed out that the current world market price per metric ton of iron ore is fluctuating between US$ 45.00 and US$50.00.
Mr. Allen Fu disclosed that due to the current low price of iron ore on the world market, the company is however readjusting its production of ore from 90,000 tons per month to as low as 30,000 tons per month in order not to continue to sustain loses.
He also indicated that the readjustment policy currently in effect, will cause the management of China Union to reduce some of its China expatriates but will not affect its Liberian personnel or workers, as the expatriates are paid more than their Liberian counterparts.
Manager Allen Fu revealed that due to the prevailing situation, China Union has decided to outsource its cafeteria and swamp rice farm to another company as these areas, especially the cafeteria, were causing the management more money to run it every month.
“We try to find out a way of reforming the company structure. The rice farm and cafeteria are the areas we are currently working on,” Manager Allen Fu averred.
“These two areas that are being outsourced by the management of China Union fall under the General Services Department of the company and any liabilities will be handled by the company that is to take over,” Manager Allen Fu explained.
He also noted that on every ton of iron ore produced by China Union, the company sustains a loss of at least US$ 27.00), a situation he stressed is seriously affecting mining operations in the country.
China Union Investment Bong Mining Company currently has in its employ of a little over 400 Liberians.