Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – After warning in January of the possible closure of several of its opencast coal operations, coal processing plants and associated support services, Glencore subsidiary Optimum Coal Mines on Thursday announced that it would proceed with the placing of some of its operations on care and maintenance, resulting in the retrenchment of between 600 and 700 employees.
This followed an “extensive” Commission for Conciliation, Mediation and Arbitration- (CCMA-) facilitated Section 189 consultation process with organised labour and the Department of Mineral Resources to determine whether measures were available to avoid the closure of the operations and the resultant job losses.
The company said in a statement that it had, however, been demonstrated during these sessions that these operations were not financially viable in the current market conditions and that “no measures” were available to avoid the retrenchments.
“Optimum will consider reopening these operations if the economic conditions improve…[and we] intend to retain sufficient mining operations and processing capacity to ensure the continued supply of coal to the Hendrina power station,” said the company.
Glencore had, meanwhile, agreed to provide funding to Optimum to enable it to pay the full retrenchment costs, as tabled at the CCMA, and would offer assistance to affected employees through retraining programmes to enable them to plan for the future.
This included training in areas such as portable skills and financial management.
Optimum noted that it would also consider redeploying some of the employees to other parts of the business, should vacancies be available.