Discussion | State of SA mining following Kumba Iron Ore’s announcement of possible retrenchments
Iron ore producer Kumba on Tuesday announced that 490 workers might lose their jobs.
The organisation also said contracts with service providers were being reviewed as the iron ore producer sought to cut costs by at least R2-point-5 billion this financial year.
The decision was taken in December to slash capital expenditure by $1-point-8 billion until 2026.
The situation is an outcome of the plunge in commodity prices.
In December, the company ditched plans to increase production in the face of the logistical constraints due to Transnet’s crisis. If the company continues with its plan to retrench, it is feared that the looming layoffs will add to the existing unemployment crisis.
Mining analyst Peter Major joins us to discuss the Kumba retrenchments and the general state of the mining sector in South Africa.
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