Kobakhidze rejects Chiatura miners’ demand for the state to take over management of underground mining

Prime Minister Irakli Kobakhidze has commented on the miners’ protest in Georgia’s Chiatura municipality, saying that the miners’ demand that the state take over the management of underground mineral extraction works would be ‘in principle wrong’.

Kobakhidze’s statements were made on Wednesday, during which he expressed hope ‘a solution will be found’.

Since 28 February, thousands of miners from Chiatura have been holding protests demanding that the state protect the rights of miners and take over mining operations in the region from the Georgian Manganese company.

On Friday, the Chiatura Management Company, the company  in charge of mining operations in the Georgian municipality of Chiatura, reportedly filed for bankruptcy and laid off 3,500 of its employees.

The Chiatura Management Company is a contractor for Georgian Manganese, which claims to be operating a dozen mines in the municipality. Georgian Manganese is the largest employer in Chiatura.

3,500 reportedly laid off as Georgia’s Chiatura Management Company declares bankruptcy

The company previously announced that it wouldn’t resume underground mining, citing ‘unprofitability’ as protests against the company continue.

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On Wednesday, Kobakhidze stated that the company’s appeal for bankruptcy in court ‘is the most negative development of events that we can imagine’.

However, he noted that ‘in general, for the state to take over a private enterprise is fundamentally wrong’.

‘Of course, we are as interested as possible in ensuring that everyone who worked in this mine has decent pay. It is a difficult issue, there is a global problem here, product prices have seriously fallen, which is why the enterprise has lost profitability, and against this background, they are paying 60% of salaries for several months, so that, in fact, the mines are no longer working. It is a difficult situation’, he said.

He added that it was difficult to demand that private businesses pay salaries when the enterprise is not functioning.

‘They [paid salaries] out of social responsibility, but you can’t continue to do this all the time’, Kobakhidze said.

Chiatura Management Company announces total suspension of underground mining

Locals warn that the company’s choice to carry out open-pit mining poses a bigger environmental risk.

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Speaking to BM.ge, protesting miner Tariel Mikatsadze said that the issue is a matter of negotiations. Mikatsadze further emphasised that making a statement on television was irrelevant.

‘The only solution is for the company [Georgian Manganese] to leave here. Whoever has a license to extract and sell this should leave’, he said.

‘After that, we need to sit down with the government and talk. This requires a meeting, not making a statement on some television, which is in no way satisfactory’.

In his comments to the Public Broadcaster, Kobakhidze also mentioned that a ‘trilateral format’ meeting was held on Wednesday, where the Chiatura issue was discussed.

On Thursday, Georgia’s Health Ministry stated that the meeting of the ‘Tripartite Commission for Social Partnership’ was attended by Economic Minister Levan Davitashvili, Justice Minister Anri Okhanashvili, Minister of Regional Development and Infrastructure Irakli Karseladze, Head of the Government Administration Levan Zhorzholiani, Deputy Health Minister Giorgi Tsagareishvili, Chair of the Georgian Trade Unions Confederation (GTUC) Irakli Petriashvili, President of the Employers’ Association Elguja Meladze, and other ‘representatives of the sector’.

According to the ministry, the meeting participants discussed ‘the current situation in mining companies operating in the Chiatura municipality and issues related to the dismissal of employees’.

Their official statement claimed that the issue is complex and, given the current difficult situation, the commission decided to form a group from representatives of the state, employees, and employers’ associations, which, taking into account the actual circumstances, will discuss ways to solve the problem and make the most painless decision.

‘According to the commission members, the process should take into account the labour, economic, and social rights of employees, as well as the interests of employers. At the session, it was noted that creating incorrect expectations will damage and further complicate the processes’.

On Thursday, BM.ge reported that miners were demanding that the government include a representative of employees in the group created in connection with the crisis situation in Chiatura.

Mikatsadze told the media that miners had information about the meeting of the tripartite commission held at the Health Ministry, but that ‘they have not been contacted on this issue’.

In addition to these latest protests, the residents of Shukruti, a village in Chiatura, have been actively demonstrating for several years to raise awareness of the damage caused by Georgian Manganese. They accuse the company of running operations that have destroyed their homes and spoiled their agricultural lands, in addition to not compensating them for any damage to their property.

Chiatura miners protest and demand exit of Georgian Manganese from local mines

Georgian Manganese is the sole owner of a license to operate mines in the central Georgian municipality of Chiatura.

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