The deliberate job cuts would influence employees at Middleburg mines and Klipspruit South-East pit, Seriti stated in response to questions from Reuters. Each operations, which employed a mixed 5,212 employees as of March 2024, have been acquired from South32 in 2021.
The mines “are usually not at present commercially sustainable and require materials restructuring to enhance unit prices and the prospects of future sustainability”.
“These mines proceed to be adversely impacted by, amongst others, Transnet under-performance and common market volatility,” Seriti stated.
Coal costs have fallen off report highs above $450 per metric ton reached in 2022 after Russia’s invasion of Ukraine, to present ranges round $100.
South Africa’s freight rail operator Transnet continues to battle to supply sufficient providers resulting from shortages of locomotives and spares in addition to cable theft and vandalism of its infrastructure, impacting coal exporters similar to Seriti.
The corporate stated it had on Monday initiated consultations with labour unions underneath South Africa’s Fee for Conciliation, Mediation and Arbitration (CCMA), a statutory physique which mediates and certifies outcomes of labour disputes.
The Nationwide Union of Mineworkers (NUM) stated it could struggle the newest spherical of job cuts at Seriti.
“The NUM will likely be embarking on a large mobilization to attempt to cease Seriti Assets from undermining unions by retrenching staff willy-nilly,” the union stated in an announcement.
(By Nelson Banya; Modifying by David Evans)