Africa-Press – South-Africa. Exxaro Resources has announced a review of its loss-making Leeuwpan open-cast mine in Mpumalanga.
CEO Ben Magara said the mine continues to run at a loss despite efforts to turn it around. He said the group began formal section 189 consultations with employees and representatives at the operation on Monday.
“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,” he said.
Magara said the process would likely take up to 90 days.
“We have started this process this morning (Monday). It is too early to say what will come out of it, but we will share details as they emerge. The most important thing is to minimise any job losses while ensuring a viable business, that is why we are here.”
Exxaro flagged 15% lower Eskom sales due to longer than expected maintenance. It said thermal coal sales are likely to climb 23% as export volumes were diverted to the local market. Steel-making coal is expected to fall 26% after disruption to rail and heavy rainfall in the first half of the year.
Exxaro financial director Riaan Koppeschaar said Transnet Freight Rail (TFR) continued to face failing infrastructure, cable theft, power failures and locomotive and wagon shortages.
A derailment in the second quarter had also affected production. Despite the challenges at TFR, the Richards Bay Coal Terminal volumes improved to 54.45-million tonnes per annum (Mtpa) from 52 Mtpa a year earlier.
“Rail execution remains volatile but has shown improvement, particularly in the Mpumalanga region. The Waterberg region saw weekly train frequencies improve from two to three trains per week in the first quarter of 2025, from four to five trains in the second quarter of 2025,” he said.
For More News And Analysis About South-Africa Follow Africa-Press
