Border Timbers Employees Abscond for Gold And Diamonds

Source: Financial Gazette (Harare)

Date: 19 September 2007

Author: Anon

Labour shortages have dealt a hammer blow to Zimbabwe Stock Exchange-listed Border Timbers Limited (BTL), as employees abscond its timber plantations in favour of the lucrative gold panning and diamond mining.

Although the company could not disclose the number of workers who have taken up gold and diamond mining, BTL revealed in a statement accompanying its year-end results that some of its employees could not resist the lure of the precious minerals.

"The continued dry spell in the first six months of the year severely restricted the planting operations. The shortages of labour in the Chimanimani plantations arising out of employees absenting themselves from work in favour of gold panning in Mozambique and diamond mining in Marange area adversely affected the company's planting programme," said BTL.

The company, however, said it has put in place plans where it would recruit labour from as far as Masvingo, Buhera and Chivhu.

The group achieved a turnover of $52 billion in the 12 months to June 30 against $1,4 billion recorded for the year ending June 2006.

This represents a growth of 3,436 percent, which is below the official inflation rate, which raced past 7 600 percent in July.

Revenue growth was negative in real terms due to the reduced production throughout the financial term at all BTL's sawmills and factories. BTL said the performance of the company, although satisfactory all round, could have been much better had the business environment it operated under in the last year been different.

The company's performance was affected by price controls and the general tough economic conditions.

"The effects of the recently gazetted legislation on pricing coupled with a stagnant exchange rate for exporters are factors that will exacerbate

the already difficult economic environment," said BTL. "Management has initiated dialogue with the authorities through the Timber Producers' Federation and it is the company's sincere hope that the negotiations will result in a mutually agreeable pricing formulae for timber products," the company added.

BTL also said a total of 174 hectares of pine and eucalyptus plantations were damaged by Cyclone Flavio at Charter, Sawerombe and Tilbury estates in February.