By Lawrence Williams

Marampa Mines Limited (MML) is preparing to temporary shutdown operations with more than 3,000 of its workforce, including contractors, potentially facing job losses, according to information received by the Fritong Post, as rising freight charges, fuel prices and unfavourable market conditions put additional strain on the company’s finances.

A suspension notice sent to the Minister of Mines and Mineral Resources, Julius Mattai, forms part of what the company described as its “Marampa Reset” programme, which aims to restructure the business on a more sustainable financial and operational footing, MML said in an October 22 business update.

The company said it would only retain the minimum workforce required to protect its mining licence, secure its assets and maintain essential services during this period. Notwithstanding the prevailing situation, MML said it would continue to uphold its social commitments across the Marampa chiefdom and host communities, meaning it would maintain its obligations under the Community Development Agreement (CDA) and support to Community Development Fund (CDF) projects. 

They said production will resume when market conditions improve. 

The situation is similar to the broader challenges facing mining businesses elsewhere exposed to global shocks. Iron ore producers must now deal with the high costs of extracting, processing and shipping their products to overseas buyers.

In March 2026, S&P Global Market Intelligence reported that disruption around the Strait of Hormuz had tightened vessel availability and increased shipping, insurance and energy costs. Its modelling estimated an 11.3% increase in the global iron ore cost base under the scenario examined, with smaller independent producers particularly exposed to logistics and fuel shocks. 

In South Africa, African Rainbow Minerals suspended its loss-making Bokoni platinum mine in 2025 after lower platinum-group metal prices and rising unit costs undermined profitability, Reuters reported, as its mine’s cash costs rose 48% to $2,051 per ounce. 

For people in Marampa chiefdom and surrounding communities, a freeze on mining operations could have huge consequences for households, contractors, transport operators, traders and other businesses that depend on it for survival.

MML said the restructuring would continue and affected workers would be duly informed of any changes, while assuring that cost reductions will not compromise its obligations to the workers, communities and government.

In a statement released 26 October, the Ministry of Employment, Labour and Social Security said it was “taking proactive steps” to secure the rights of MML’s employees by ensuring they receive their legal entitlements.  

The situation now places renewed focus on the need for government to step in to protect the livelihoods of the affected workers while sustaining investment in the mining sector.