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Money-spinning graphite mines driven to closure
By Pushpakumara Jayaratna
The graphite mines at Dodangaslanda, which in the past provided employment to many by mining quality graphite, have been closed down. This has resulted in about 400 employees losing their livelihood, not to mention the misery their families would have to undergo.

The mines haves been in existence for nearly half a century and the closure was speculated as being an act of possible privatisation. About 700 tons of graphite have been dumped outside, possibly to be sold after the closure of the mines, alleged the employees.

In the past, these mines had produced high quality graphite which was exported to countries like Australia, Germany, Korea, China and India. When the State took over these mines in 1971, the Kolongaha and Kahatagaha mines, collectively known as the Dodangaslanda mines, occupied an area of around 75 and 39 acres respectively, with a work force of about 1,200.

In 1975-79 when the production was high the workers enjoyed many perks and benefits. But during the 1980s, due to trade union disputes and workers being divided by party politics of both the UNP and the SLFP the work-force had been reduced to 900 from 1,200.

The establishment suffered losses for the first time in the early 90s. In addition to this, due to the activities of the JVP, equipment and vehicles belonging to the mines suffered damage.

In 1992, the mines were privatised and the name changed to Ceylon Graphites. Still the establishment continued to make profits, mainly on the heaps of plumbago that had been mined and dumped on its premises earlier.

Due to the inefficiency of the management, even the EPF was not paid. The establishment incurred heavy losses, mainly due to trade union actions, climaxing in its closure. The number of employees was reduced to 659, while those who left found employment in kilns and quarries, as labourers.

A profit-making establishment that topped the 4 million mark at one time, was faced with extinction. In 1997 the President took over the mines in keeping with an election pledge and production resumed.

Again it showed signs of improvement and due to the dedication of the employees, production increased and profits started to trickle in. At one stage, as much as 150 tons of graphite was mined. Consequently, the welfare of workers too improved. A sum of Rs. 250,000 had been paid to 10 workers as compensation.

The situation changed after the present government took office. W.A. Jayasinghe aged 53, the oldest employee, and the president of the Eksath Jathika Pathal Kamkaru Sangamaya and vice president of Pathal Surakeeme Sangamaya, told The Sunday Times that after the new management took-over things had taken a turn for the worse.

“No outsider can manage this unless he is well versed in mining. This establishment was closed down not due to production or marketing problems, but because they needed to selling this, in spite of the profits. The administration forced these mines to this sorry state with a view to sell it. We request that it be not closed down, but given to able administrators as there are many such in this country," he added.

Commenting about possible plans to privatise the organisation he said, ''We can't believe that, going by what happened earlier under private management, due to which we are still suffering. We don't have confidence in companies. We maintain the stance that workers be compensated and re-employed under state management. We had discussions with the Labour Commissioner on compensation but we are not satisfied with his terms. Now we are facing unemployment with or without compensation."

The General Manager L.S. Allles said, "The board of directors agreed to close this as it is a colossal loss. Compensation is agreed on the following terms. Upto 4 lakhs according to service for those laid-off and 6 lakhs for the executive grades. He said the government had assured to pay compensation without delay. PERC will take action on the sale to the private sector.


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