Glencore and Seriti Resources are in talks to cut hundreds of jobs in South Africa as their ability to export coal is stymied by inefficiencies at the state-run freight company. Transnet, which transports the fuel from mines in Mpumalanga province to Richards Bay Coal Terminal, has been hobbled by sabotage, cable theft and aging equipment. While it has taken steps to improve security and ease procurement rules to lower costs, performance has declined.
Glencore and Seriti Resources are in talks to cut hundreds of jobs in South Africa as their ability to export coal is stymied by inefficiencies at the state-run freight company.
“Transnet’s operations are a crucial cog in the country’s economy,” the National Union of Mineworkers, a labor group, said in a statement calling for PresidentGlencore started a so-called Section 189 process, beginning consultations with labour on job cuts, according to NUM. The process could affect more than 200 workers at its iMpunzi coal mining complex, online publication News24 reported earlier. The company declined to comment.
Miners have tried to get around the railway challenges by using trucks to transport coal from mines to the coast, but that’s become less attractive after prices dropped. Another coal producer, Exxaro Resources, has temporarily stopped shipping by road. Exxaro didn’t respond to emails seeking comment.“Transnet can only address its core challenges to ramp up volumes on its rail networks and ensure a stable operation in the export coal sector,” the company said in a reply to questions.
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