Fin24 reports global mining and trading giant Glencore has kicked off a retrenchment process at its iMpunzi coal operation in Mpumalanga.

In a letter dated 20 September from the general manager of the iMpunzi complex, Hlayiseka Chauke, Glencore cited Transnet Freight Rail's [TFR’s] poor performance as a key consideration behind proposed retrenchments, which could affect up to 214 employees. The operation has 1,138 permanent employees and 10 fixed-term employees. The letter noted that TFR's performance has been very poor since the beginning of 2021, with export volumes railed to the Richards Bay Coal Terminal dropping from as high as 80 million tons to about 50 million tons per annum. Chauke advised that the iMpunzi Complex had to consider reducing production in both the mining and processing areas to match the expected rail performance of TFR. The company said it would consult on the reasons for its proposal and consider any meaningful alternatives put forward. It also said it had submitted a request to the CCMA for facilitation. Thapelo Malekutu of the National Union of Mineworkers (NUM) said the union had been warning of coming job losses in the sector due to the logistics issues, but calls for an intervention from government had fallen on deaf ears. The Glencore retrenchment process comes on top of others in the coal heartlands of Mpumalanga, causing increased concern over job losses among organised labour, especially after Seriti Power kicked off a sizeable process at its Klipspruit mine earlier this month, which could affect up to nearly 800 quality jobs.

• Read the full original of the report in the above regard by Lisa Steyn at Fin24 (subscriber access only)

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