Kumba Iron Ore may lay off 490 employees
Hammered by Eskom’s load shedding and logistics constraints under Transnet, Kumba Iron Ore is laying off 490 employees under a restructuring program that will see the Anglo American-owned company reduce its production from 2024 to 2026.
The logistical constraints and load shedding experienced during 2023 had raised the “cost of doing business in South Africa,” Kumba Iron Ore said on Tuesday.the company was now “re-configuring” its operations.
“The potential reconfiguration of our business is expected to impact 490 jobs including fixed-term employees across Kumba’s operations,” said Kumba Iron Ore chief executive, Mpumi Zikalala.
The company was now embarking on Section 189A processes involving consultations with trade unions and affected employees.
The company had already streamlined office-based roles in 2023 and, it said, “given the required change to our production footprint in the medium term, we do also need to reconfigure” the size of the workforce.
Kumba Iron Ore said it has together with other members of the Ore User’s Forum suffered significant losses due to derailments and logistics infrastructure and equipment failures over the past few years.
The issues had continued in the past year. In order to re-balance its value chain, the company had decided to “slowdown overall production in the fourth quarter of 2023” after “product stockpiles” peaked at unsustainable levels.
Resultantly, production for 2023 full year had fallen by 5.3% to 35.7 million tonnes although sales increased by 1.6% to 37.2 million tonnes compared to the previous year “when industrial action at Transnet disrupted rail and port” operations.
“Logistics challenges will, however, take some time to resolve and unless we act now to align our production and cost base to current logistics constraints, this business will not have the resilience it needs to deliver across its stakeholders.”
BUSINESS REPORT
News Related
-
1024x768_france-antoine-dupont-and-fabian-galthie-oct-2023-jpg Fabien Galthie’s men went into the global tournament as one of the favourites but they were ousted in the last-eight. Les Bleus suffered a 29-28 defeat to the Springboks as they were eliminated at their home World Cup by the eventual champions. It was a similar story to 2019, ...
See Details:
Antoine Dupont still hurt by 'injustice' of World Cup loss to Springboks
-
China’s New Aircraft Carrier Begins Catapult Testing Testing of the catapults on the Chinese aircraft carrier Fujian has begun. This is an important step forward in the construction of this ship, which is set to be the first carrier in the People’s Liberation Army Navy, or PLAN, that launches aircraft ...
See Details:
China's New Aircraft Carrier Begins Catapult Testing
-
Aircraft Downed Inside Russia By Patriot System: Ukrainian Air Force The Ukrainian Air Force has now confirmed that a number of Russian aircraft shot down back in May over their own territory were indeed destroyed by a foreign-supplied Patriot air defense system. The possibility that Ukraine’s newly acquired Patriots may ...
See Details:
Aircraft Downed Inside Russia By Patriot System: Ukrainian Air Force
-
-
Exiled Mayor of Melitopol Ivan Fedorov delivers a speech during a meeting of the Foreign Affairs Committee of the European Parliament on April 20, 2022 in Brussels. Fedorov on Monday said Ukrainian partisans blew up a car with pro-Russian fighters inside over the weekend. A car with Chechen soldiers fighting ...
See Details:
Car With Pro-Russian Fighters Blown Up by Resistance: Exiled Mayor
-
-
Springbok lock opts not to renew contract with URC team Rugby World Cup-winning lock RG Snyman has opted not to extend his stay at Munster beyond the current season. This week, it was revealed by Munster that Snyman would seek new horizons once his deal with the Irish Province expires. ...
See Details:
Springbok lock opts not to renew contract with URC team
-
Pravin Gordhan’s deathly legacy: A threat to SA’s economic future In the corridors of power, where decisions shape the destiny of nations, one man has emerged as front runner for the dubious honour of being the architect of South Africa’s economic chaos – Minister of Public Enterprises Pravin Gordhan, at ...
See Details:
Pravin Gordhan’s deathly legacy: A threat to SA’s economic future
-
Pravin Gordhan’s deathly legacy: A threat to SA’s economic future In the corridors of power, where decisions shape the destiny of nations, one man has emerged as front runner for the dubious honour of being the architect of South Africa’s economic chaos – Minister of Public Enterprises Pravin Gordhan, at ...
See Details:
Antoine Dupont STILL hurt by ‘injustice’ of Rugby World Cup loss to Springboks
-
Pravin Gordhan’s deathly legacy: A threat to SA’s economic future In the corridors of power, where decisions shape the destiny of nations, one man has emerged as front runner for the dubious honour of being the architect of South Africa’s economic chaos – Minister of Public Enterprises Pravin Gordhan, at ...
See Details:
Rubber stamping NHI Bill will have damaging consequences for SA for generations
-
-
Pravin Gordhan’s deathly legacy: A threat to SA’s economic future In the corridors of power, where decisions shape the destiny of nations, one man has emerged as front runner for the dubious honour of being the architect of South Africa’s economic chaos – Minister of Public Enterprises Pravin Gordhan, at ...
See Details:
After the Bell: SA’s NHI healthcare disaster starts right here
-
Pravin Gordhan’s deathly legacy: A threat to SA’s economic future In the corridors of power, where decisions shape the destiny of nations, one man has emerged as front runner for the dubious honour of being the architect of South Africa’s economic chaos – Minister of Public Enterprises Pravin Gordhan, at ...
See Details:
Gupta-linked development land for sale
-
OTHER NEWS
A senior Volkswagen executive involved in a global cost-cutting strategy said on Friday, 24 November, he was “very worried” about the future of the company’s operations in South Africa, which ...
Read more »
Photograph: Toby Melville/Reuters Liz Truss, the shortest-serving prime minister in British history, who was famously shown to have a shorter shelf life than a lettuce, has effectively backed Donald Trump ...
Read more »
Standard Bank treasonous? We're literally helping to keep the lights on says CEO Bruce Whitfield speaks to Lungisa Fuzile, Standard Bank SA CEO. Standard Bank is one of 28 banks ...
Read more »
Israel, Hamas agree to extend truce for two days; Musk ‘would like to help rebuild Gaza’ The UN said many people in Gaza still had no food or cooking fuel ...
Read more »
Mamelodi Sundowns’ former coach, Pitso Mosimane, dismissed the African Football League Jingles shared his opinion and compared it to the CAF league and said that it was a mere tournament ...
Read more »
Take note of these N3 road works between Westville and Paradise Valley The N3 between the Westville viaduct and Paradise Valley interchange will be partially closed to traffic for the ...
Read more »
UKZN medical student bags 2023 Health Excellence Rising Star Award Durban — One of the country’s most progressive young minds in the medical field, fifth-year University of KwaZulu-Natal (UKZN) medical ...
Read more »