South Africa's mines minister withdraws suspension on Glencore mine - CNBC Africa

South Africa's mines minister withdraws suspension on Glencore mine

Mining

by Reuters 0

S.Africa's mines minister on Friday conditionally withdrew his suspension of the licence for Glencore's Optimum Coal Mine. Photo: Wikipedia

South Africa's mines minister on Friday conditionally withdrew his suspension of the licence for Glencore's Optimum Coal Mine, following consultations with the firm, his spokesman said.

"The company engaged on the issues of concern which resulted in the minister suspending their operating licence. There is consensus to remedy the issues of concern," Mahlodi Muofhe told Reuters.

Muofhe did not give details of the conditions set for Optimum Coal to resume operations.

Mines Minister Ngoako Ramatlhodi on Tuesday ordered Glencore to suspend all operations at the coal mine, citing the "inhumane" way it planned to carry out job cuts.

Glencore said it had complied with all legal requirements relating to job cuts, including consultation with the government and unions for an extended period of time.

The company announced in July it would cut 380 jobs at Optimum and shut part of the mine due to lower coal prices. This week it said the mine's finances were strained as it was supplying state power firm Eskom with coal at prices lower than the cost of production.

Job losses are a politically and socially charged issue in Africa's most advanced economy, where the unemployment rate officially stands at about 25 percent - although some analysts say the figure is higher.

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