JOHANNESBURG (miningweekly.com) – Dual-listed Buffalo Coal has kicked off the planned restructuring activities at its Dundee operations as its extended consultation period with organised labour and relevant stakeholders come to an end on Saturday.
Few employees would, however, be made redundant, as STA Coal Mining, which would start mining four sections at the group’s underground mine at a fixed contract mining fee per ton, would employ the majority of the employees that were being retrenched.
STA, which was currently mining two sections at the Magdalena mine under an existing contract mining agreement, inked the new three-year contract mining agreement with Zinoju Coal and Buffalo Coal Dundee earlier this year, with mining activities to start on October 31.
The agreement had the option for a further two-year extension.
Buffalo Coal Dundee and Zinoju planned to sell two continuous miners to STA at a price to be offset against amounts owing to STA under the existing agreement and a reduction in the contract mining rate going forward.
Buffalo Coal Dundee would continue mining the Aviemore underground mine and operating the company’s two washing plants and siding.