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Anglo’s S.African iron ore unit plans to cut 100-plus jobs due to rail problems
7:55 CAT | 05 Oct 2023
File photo: Reuters
Anglo American’s AAL.L South African iron ore unit plans to cut scores of jobs at its head office as it restructures amid challenges in moving sufficient volumes to ports due to rail constraints.
Kumba Iron Ore KIOJ.J sent notice to cut 183 jobs, with the majority at its headquarters, Livhuwani Mammburu, spokesperson for National Union of Mineworkers said.
The job cuts could be pared back to about 141 workers if the restructuring plan is successful, Mammburu said, adding the labour group opposed the plans.
“Kumba said it’s embarking on a restructuring and the main reasons they are giving is they are not able to transport more iron ore to the port due to the problems with Transnet,” Mammburu told Reuters, referring to the state-owned logistics company.
Kumba was not immediately available to comment.
The miner’s iron ore exports have been throttled by frequent disruptions on the rail line operated by Transnet. The disruptions, often caused by locust swarms, have recently been worsened by cable thefts and derailments.
As a result, Kumba has been forced to stockpile more iron ore at mines. Kumba’s profit in the six months through June declined 17% due to the rail challenges and softer prices.
Source: Reuters
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