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JSE-listed mining Group Wescoal [JSE:WSL] says that 274 contract employees at one of its subsidiaries have been served with notices of dismissal following what it described as "work stoppages, strike actions and riots".
In an update to shareholders on Tuesday, Wescoal said that production at Vanggatfontein Mine in Mpumalanga will be suspended for a period of between six to eight weeks.
The mine is run by Keaton Mining, a subsidiary of Wescoal. The operations are outsourced to a mining contractor.
Wescoal said employees "turned violent" on April 16, resulting in the destruction of equipment and the blockage of the mine's entrance gate. The contractor was then granted a court interdict against the mine's employees on April 17 in the Labour Court.
The mining company said a disciplinary hearing found that the "only recommendation which would be appropriate in the circumstances would be that of dismissal".
The mining group said it had notified Eskom that coal deliveries would be stopped.
*Update: The headline of this article was changed at 12:35 on Wednesday to make clear that Wescoal did not serve the notices of dismissal. These were served by a mining contractor.
