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Cape Town - The National Union of Mineworkers (NUM) says talks with Exxaro [JSE:EXX] are not bearing fruit, as wildcat strike action spreads, sparking fears that electricity supplies could be hit.
NUM said talks with Exxaro bosses had not yet yielded results, where over 3 000 workers have downed tools, reported AFP.
"The company informed the workers that failure to meet targets had resulted in bonuses not being paid," said NUM spokesperson Lesiba Seshoka.
An unprotected strike at two Exxaro mines in Mpumalanga spread to its Limpopo operations, bringing production to a standstill, the coal miner said on Monday.
The mines where the strikes are taking place are Matla‚ Arnot‚ Grootegeluk‚ Leeuwpan and Inyanda.
Exxaro said the strikes were related to different issues at the mines.
The strikes at Matla and Arnot in Mpumalanga started on 5 March 2013 and are related to non-payment of performance bonuses due to the operations having not achieved performance targets.
The strike at Grootegeluk in Limpopo started on 8 March 2013 and involves a range of grievances. According to Exxaro‚ the mine has adequate stock days of supply for the Matimba power station and for its other domestic and export customers.
“Production has stopped at Leeuwpan from 9 March 2013 and Inyanda from today. Contingency plans are in place to supply customers‚” Exxaro added.
“Exxaro is engaging with unions and managing the situation to bring operations to normality as soon as possible," spokesperson Win de Klerk said in a statement.
Exxaro is a key supplier of coal to power utility Eskom.
"The mines have implemented contingency plans to continue supplying coal to maintain the functionality of their respective power stations and other customers. Exxaro will continue to work closely with Eskom to ensure the availability of coal supply‚” the miner said.
Mxolisi Mgojo, Exxaro’s executive general manager for coal, said last week that it is important to resolve the strike to avoid a blackout.
Mgojo was speaking at the sidelines of Exxaro’s financial results for the year that ended on December 31 last year.
Exxaro stated that there were challenging trading conditions for coal in 2012 with average export prices dropping from $105 a ton in January to a low of $85 a ton in November.
“A general decline in export volumes was also experienced during the year,” said Exxaro’s statement.
“Exxaro realised an average export price of $94 a ton in 2012, compared to $118 a ton in 2011. Production earmarked for export was successfully redirected into the domestic steam market where opportunity arose.”
This was on the back of weakened global demand.
- Sapa, AFP, I-Net Bridge
NUM said talks with Exxaro bosses had not yet yielded results, where over 3 000 workers have downed tools, reported AFP.
"The company informed the workers that failure to meet targets had resulted in bonuses not being paid," said NUM spokesperson Lesiba Seshoka.
An unprotected strike at two Exxaro mines in Mpumalanga spread to its Limpopo operations, bringing production to a standstill, the coal miner said on Monday.
The mines where the strikes are taking place are Matla‚ Arnot‚ Grootegeluk‚ Leeuwpan and Inyanda.
Exxaro said the strikes were related to different issues at the mines.
The strikes at Matla and Arnot in Mpumalanga started on 5 March 2013 and are related to non-payment of performance bonuses due to the operations having not achieved performance targets.
The strike at Grootegeluk in Limpopo started on 8 March 2013 and involves a range of grievances. According to Exxaro‚ the mine has adequate stock days of supply for the Matimba power station and for its other domestic and export customers.
“Production has stopped at Leeuwpan from 9 March 2013 and Inyanda from today. Contingency plans are in place to supply customers‚” Exxaro added.
“Exxaro is engaging with unions and managing the situation to bring operations to normality as soon as possible," spokesperson Win de Klerk said in a statement.
Exxaro is a key supplier of coal to power utility Eskom.
"The mines have implemented contingency plans to continue supplying coal to maintain the functionality of their respective power stations and other customers. Exxaro will continue to work closely with Eskom to ensure the availability of coal supply‚” the miner said.
Mxolisi Mgojo, Exxaro’s executive general manager for coal, said last week that it is important to resolve the strike to avoid a blackout.
Mgojo was speaking at the sidelines of Exxaro’s financial results for the year that ended on December 31 last year.
Exxaro stated that there were challenging trading conditions for coal in 2012 with average export prices dropping from $105 a ton in January to a low of $85 a ton in November.
“A general decline in export volumes was also experienced during the year,” said Exxaro’s statement.
“Exxaro realised an average export price of $94 a ton in 2012, compared to $118 a ton in 2011. Production earmarked for export was successfully redirected into the domestic steam market where opportunity arose.”
This was on the back of weakened global demand.
- Sapa, AFP, I-Net Bridge
