Future of almost 700 workers at Assmang's Beeshoek iron ore mine uncertain
The looming mass job loss is a direct result of the financial struggles faced by steel producer ArcelorMittal, the mine's sole major client.
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JOHANNESBURG - The future of close to 700 workers at Assmang's Beeshoek iron ore mine is uncertain amid a critical threat of business closure.
The looming mass job loss is a direct result of the financial struggles faced by steel producer ArcelorMittal, the mine's sole major client.
Since 2023, ArcelorMittal has brought to attention its challenges, including electricity tariffs and import tariffs on steel.
Assmang has served a section 189 notice in terms of the Labour Relations Act, indicating its intention to begin consultations regarding the possible retrenchment of 688 workers.
The National Union of Mineworkers (NUM) said it wanted full disclosure from the company, including the commercial reasons for the proposed retrenchments and why other alternatives were rejected.
The union said it wanted to know the rationale for considering "care and maintenance" instead of outright closure and details on the impact on the community and existing long-term contracts.
The NUM said consultations were continuing on possible alternatives to retrenchment, including hiring and overtime freezes, redeployment, and voluntary separation packages.
The Beeshoek iron ore mine is located near Postmasburg, in the Northern Cape, and is the oldest of Assmang’s mines.