Miningmx reports that some 750 contract employees will be affected as a result of Exxaro Resources terminating its agreements with Group Five Construction, which announced earlier this month it was to go into business rescue proceedings.  

Group Five Projects was contracted in April 2017 to build a new coal plant as part of Exxaro’s Grootegeluk Plant 6 expansion at the Grootegeluk mine in Limpopo.  The project was set down for completion in May, but would now suffer a delay as a result, the company said.  “It is indeed a sad day as more than 750 contract workers will be impacted by this decision,” said Johan Meyer, executive head of projects and technology at Exxaro.  He also gave the assurance that Exxaro’s financial exposure as a result of Group Five Construction’s financial difficulties was minimal.  On Friday, Exxaro announced that it was “engaging with its labour support – legal and human resources – to maintain stability on site.  Group Five Project’s workers and subcontractors had moved off-site in the meantime.  The coal producer said it would keep all stakeholders updated and would share more information as and when it became available.

• Read the full original of David McKay’s report in the above regard at Miningmx

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