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News24 reports that iron ore group Assmang has issued retrenchment notices that could see nearly 700 workers lose their jobs after its Beeshoek mine failed to secure a new supply deal with ArcelorMittal SA (Amsa).
In the retrenchment notice, which was issued to trade unions last week, Assmang said the 688 potential job cuts were expected to take effect by 30 November this year. Assmang is jointly owned by African Rainbow Minerals and Assore and is located near Postmasburg in the Northern Cape, Beeshoek’s ore reserves of around 2.2 million tonnes per annum had been expected to be depleted by 2030. However, earlier closure may now be inevitable as Beeshoek is dependent on Amsa as its only customer and the steelmaker has declined to conclude a new long-term supply deal with the mine. Amsa is under severe financial strain and is preparing to close its loss-making Newcastle steel mill if the government does not present a sustainable solution for the business soon. Beeshoek has now proposed to discuss the mine’s potential closure with unions.
Trade union Solidarity said it would demand decisive intervention on retrenchments and expected thorough consultation on practical alternative options for employees, including employment opportunities at other mines in the area. Adéle Rossouw, Solidarity’s organiser for the mining sector, said the worst possible option was now being considered as the mine’s closure would be a disaster for the Beeshoek mining community, as well as the wider community around Postmasburg.
- Read the full original of the report in the above regard by Lisa Steyn at News24 (subscription / trial registration required)
- Read too, Solidarity calls for decisive intervention amid possible Beeshoek mine closure, at Mining Weekly
Get other news reports at the SA LabourNews home page