Workers at mining major Rio Tinto’s metallurgical coal mine, Zululand Anthracite Colliery (ZAC), obtained a strike certificate from the Commission for Conciliation, Mediation and Arbitration (CCMA) on January 15, which paved the way for unions at the mine to embark on a legal strike from January 21. However, the strike never materialised because an agreement was reached and employees returned to work.

ZAC is majority-owned by Rio Tinto through Australia-based Riversdale Hold- ings, with black economic-empowerment (BEE) partner Maweni Mining Consortium (MMC) holding a 26% stake in the mine.

“Following productive negotiations at the CCMA between the management of ZAC and the unions, an agreement was reached by all parties. “The strike notice has been withdrawn, all staff are at work and the mine is operating normally,” Rio Tinto says in a statement.

However, the details of the agreement are confidential, a Rio Tinto spokesperson tells Mining Weekly.

BEE Issues Workers at ZAC embarked on an unprotected strike from December 19, 2012 to January 10, 2013, after they had rejected Rio Tinto’s offer to pay R10-million to the employees in exchange for their support to waive historical BEE issues and for their support regarding the sale of the mine.

However, MMC CEO Fred Arendse states that the historical BEE issues have not been fully resolved by the agreement reached. “The parties have not waived their issues in their entirety and will be engaging the relevant authorities, including the Minister of Mineral Resources, before any transfer of the licence, as set out in Section 11 of the Mineral and Petroleum Resources Development Act, can take place,” he says.

Arendse adds that he is pleased that Rio Tinto has acknowledged the veracity of the historical BEE issues and has compensated employees.

“However, although we appreciate this gesture, we do not believe that it is enough and will continue to engage parties in a construc- tive manner,” Arendse tells Mining Weekly.

Meanwhile, MMC has expressed concerns regarding the acquisition of Rivers-dale Holdings by Southern Africa-focused coal producer Forbes & Manhattan Coal, which agreed to buy two anthracite coal assets, including ZAC, from Riversdale Holdings for R440-million in September last year.

In a letter to Forbes & Manhattan Coal, MMC member SSC Group states that it is concerned about the coal producer’s financial capability to undertake the current transaction and make the necessary future capital investments.

SSC Group also states that labour represents the biggest component of the total fixed cost and that any motion or suggestion to retrench any member of the workforce to optimise profits will be fiercely opposed.