GLENCORE and Seriti Resources Holdings are in talks to cut hundreds of jobs in South Africa as their ability to export coal is stymied by inefficiencies at the state-run freight company.
Transnet, which transports the fuel from mines in Mpumalanga province to Richards Bay Coal Terminal, has been hobbled by sabotage, cable theft, and aging equipment. While it has taken steps to improve security and ease procurement rules to lower costs, performance has declined.
“Transnet’s operations are a crucial cog in the country’s economy,” the National Union of Mineworkers, a labour group, said in a statement calling for President Cyril Ramaphosa to intervene. “The situation is very dire.” moneyweb.co.za