JOHANNESBURG (miningweekly.com) – Kumba Iron Ore has started a Section 189 consultation process with unions regarding the closure of its Thabazimbi mine, in Limpopo, which will affect about 800 employees and 360 contractors.

The mine was more than 80 years old and its closure had been postponed six times over the past 15 years through mine life extension plans.

A combination of factors had affected the mine’s economic viability, leading to the decision to close the mine.

These included difficult mining conditions owing to the inherent geotechnical complexities that were exacerbated by a limited remaining iron-ore resource; very high operating costs as a result of high waste stripping requirements; and a slope failure on June 6, which had rendered the iron-ore resources in the one remaining pit uneconomic to mine.

“These are challenging times for the iron-ore industry and difficult times for our employees and the mine’s contractors. We are, however, taking the steps necessary to ensure we have a viable and resilient business for the long term.

“Closing a mine is a difficult and painful process and its impact cannot be taken lightly. We have looked at all options to further sustain the mine, having already extended its life several times in recent years and have come to the inevitable conclusion that this mine has now come to the end of its life,” said CEO Norman Mbazima.

Trade union Solidarity said it regretted the intended retrenchment of the permanent and contract employees, but acknowledged that there was little Kumba could do to avert the retrenchments.

It would, nevertheless, do everything in its power to limit the impact of retrenchments on its members.

The union believed it would be possible to reduce the number of retrenchments by redeploying Thabazimbi employees elsewhere within the larger Anglo American group.

"Solidarity will meet with the employer as soon as possible to discuss alternatives to retrenchments," it added.