JOHANNESBURG (miningweekly.com) – Despite continued challenges caused by the current low coal price and negative economic climate, the Optimum coal mine, in Mpumalanga, was kept running to allow for talks on the proposed retrenchment of employees to continue, diversified miner Glencore said on Friday.

In response to a statement by the National Union of Mineworkers (NUM) on Thursday, which declared “war against job losses through retrenchments, voluntary severance package and other ... concocted means of destroying the lives of many families with dependants in labour-sending areas”, Glencore called on the union to “desist from issuing negative statements that do not contribute to the resolution of this matter”.

The JSE-listed company noted that the management of the embattled opencast coal mine had, over the past few months, “exhausted every effort” to engage with all key stakeholders including organised labour, the Department of Mineral Resources (DMR), the Commission for Conciliation, Mediation and Arbitration and Productivity South Africa to find a solution to this impasse and to limit the impact of the proposed retrenchments on employees.

The union criticised Glencore for going ahead with plans to cut more than 1 000 employees at its coal mines despite an abundance of ore. It also accused the company of having rejected other options such as a trade sale of the operation.

“Optimum has provided detailed information regarding its financial position to the NUM, the DMR and Productivity South Africa, the latter of which has unequivocally confirmed that the current situation at Optimum is no longer financially sustainable. 

“We call upon the NUM to constructively engage with Optimum to enable the parties to meaningfully consult on outstanding Section 189 issues.  This will be in the best interests of all affected employees,” Glencore stated.