Today's Labour News

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WescoalMining Weekly reports that coal miner Wescoal has initiated a Section 189 retrenchment process, which it expects to conclude by mid-December, with staff reductions to be implemented across all operations.  

The company noted that this was necessary in light of lower demand from key customers, a lower selling price, above-inflation cost increases and the negative impact of Covid-19 on the company.  "The impact of lower offtake from Eskom and other key trading clients has resulted in the need to create significant financial headroom for the remainder of this financial year.  Several solutions in this regard are already being pursued including cost cutting, mining production reduction, rescheduling capital expenditure and noncore asset sales," the company indicated in a trading update.  The company went on to state:  "Wescoal is currently exploring opportunities to supply into the domestic market, as demand for coal returns with the easing of National Lockdown measures, and if successful, this will diversify revenue streams in general, while offsetting lower sales volumes to Eskom."

  • Read the full original of the report in the above regard at Mining Weekly

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