Zimbabwean coal miner, Hwange Colliery, has temporarily laid of a third of its workers as it battles to settle a  $14 million 6-month salary backlog and a $160 million debt, a company official said.

The coal miner’s H1 results revealed a $4.5 million loss, compared to a $1.6 million profit recorded just a year ago. This has led to 1000 workers out of an estimated 3000 workforce being laid off temporarily.

“The workers were laid off on a temporary basis. The company has been going through financial challenges,” said Burzil Dube, the company’s spokesperson.

He however noted that the layoff followed due process, stating that the affected workers, most of who worked at its open cast mine, were fully aware of its proposed action knowing the financial turmoil the company was contending with.

“The developments have been communicated to the workers. They realise the challenges being faced and we are engaging with them.”