Zyl makes major SA cut-backs

ZYL LIMITED has let go of the majority of its South African employees as part of cost reductions it blamed on the difficult market.
Zyl makes major SA cut-backs Zyl makes major SA cut-backs Zyl makes major SA cut-backs Zyl makes major SA cut-backs Zyl makes major SA cut-backs

ZYL Limited's projects in South Africa.

Staff Reporter

The Australian-listed, South Africa-focused explorer said it had embarked on a process of evaluating its administrative structure and decided that it needed to significantly reduce its corporate overheads.

“Zyl has accordingly concluded a formal process and the majority of its employees in South Africa have been retrenched,” it said.

“Such evaluation has been undertaken in consideration of the current state of the commodity and capital markets as well as the work required in securing the necessary permitting to allow the company to develop the Kangwane Projects.”

ILN attempted to determine how many staff had been made redundant, but Zyl did not comment by publication.

The news follows Zyl’s announcement on June 24 that it will no longer go ahead with its acquisition of the Mbila project in South Africa. The company also abandoned its $A5.6 million ($US5.2m) capital raising, to fund the Mbila purchase.

Under the terms of a revised settlement with Mbila’s vendors, Zyl has agreed to pay $A350,000 by July 3 and another $A150,000 on September 25.

On payment of the second amount on September 25, the parties have agreed to release each other from any further claims.

In line with this restructuring Zyl announced that its commercial director Phillipe Lalieu has tendered his resignation and stepped down as an executive director of the board, remaining as a non-executive director to “ensure continuity in South Africa.”

“The most important consideration in relinquishing my role is to ensure that the company is in good shape to survive the current downturn and well placed to take rapid advantage of any improvement in conditions” Lalieu said.

The chief operating officer of ZYL SA Jan Britz will oversee the day to day activities of the company

in South Africa, Zyl said.

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