Exxaro consults Leeuwpan employees on potential job cuts
Exxaro Resources’ woes continue as it has now announced that it’s exploring its options at its Leeuwpan coal mine in Mpumalanga, which is still recording a loss.
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The mining company revealed that it is currently holding section 189 consultations with concerned parties at the mine. It intends to minimise any job losses while ensuring a viable business.
According to Sowetan Live, CEO Ben Magara said: “We expect to get all the employees and their representatives to share their suggestions on the way forward because the loss-making at Leeuwpan is not sustainable.”
Magara was speaking at the finance director’s pre-close message, outlining the financial year ending 30 June 2025.
Financial results
The company indicated that its Eskom sales are expected to decrease by 15% because of the energy producer’s internal maintenance schedules.
Moreover, the company expects thermal coal production to decline by 4%, aligned with Eskom’s reduced demand at Grootegeluk.
While metallurgical coal production is forecast to decline by 24%, due to above-normal rainfall and associated logistical disruptions in 1Q25.
Finance director Riaan Koppeschaar says that Transnet Freight Rail (TFR) is experiencing ongoing disruptions, ranging from cable theft to power failures, locomotive and wagon shortages, and deteriorating infrastructure.
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Regarding its energy production, he says despite delays, the construction of the 68MW Lephalale Solar PV Project (LSP) at Grootegeluk is moving forward.
In conclusion, in his address, Koppeschaar said: “We continue to navigate commodity price fluctuations, domestic structural challenges and varying coal off-take in an ever-changing geopolitical landscape.”
“Our focus remains on unlocking value through process optimisation, operational efficiency and the sale of our products through economically viable sales channels.”