South Africa coal mining firm to cut over 1,000 jobs

Seriti Resources, a major South African coal miner, has announced plans to cut 1,241 jobs due to declining coal prices and ongoing challenges with rail transportation.

The move has been met with opposition from the National Union of Mineworkers.

The mines "are not currently commercially sustainable and require material restructuring to improve unit costs and the prospects of future sustainability," Seriti said in a statement on Tuesday.

"These mines continue to be adversely impacted by, amongst others, Transnet under-performance and general market volatility," it added.

Impact

The job cuts will affect workers at the Middleburg mines and Klipspruit South-East pit, both of which were acquired by Seriti in 2021.

These operations have been struggling with high costs and market volatility, exacerbated by the underperformance of South Africa's freight rail operator, Transnet.

Coal prices have fallen significantly from their peak in 2022, and Transnet has been unable to provide adequate services due to various issues, including a shortage of locomotives and infrastructure damage.

The National Union of Mineworkers (NUM) said it would fight the latest round of job cuts at Seriti.

"The NUM will be embarking on a massive mobilization to try and stop Seriti Resources from undermining unions by retrenching employees willy-nilly," the union said in a statement.

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