Latest news with #Assmang
IOL News
a day ago
- Business
- IOL News
NUM vows to challenge proposed job losses at Assmang's Beeshoek Iron Ore Mine
In a notice on the retrenchment, Assmang notified its stakeholders that an approved recovery plan hinging on AMSA committing to a three-year deal to off take at least 2.2 million metric tons per year was scuppered at the final moments. Image: Supplied Banele Ginidza The National Union of Mineworkers (NUM) is gearing up for a legal battle as it seeks to protect nearly 700 jobs at Assmang's Beeshoek Iron Ore Mine in the Northern Cape. The union on Wednesday expressed strong opposition to any attempts at fast-tracking potential retrenchments that stem from the mine's financial struggles, which are primarily linked to the economic woes of its major client, ArcelorMittal South Africa (AMSA). NUM's Kimberley regional secretary, Mosepedi Sanane, signalled the union's readiness to engage in consultations to explore alternatives to what could be one of the most significant job losses in the region. "The NUM will engage meaningfully in the forthcoming consultations. However, we are clear that we will robustly challenge any attempt at unfair job losses," Sanane said. "Our members will be kept fully informed of every development, and we will consider collective action if the employer acts in bad faith." The union said it would engage in consultations to explore all possible alternatives to retrenchment, including hiring and overtime freezes, redeployment within Assmang or other Africa Rainbow Minerals (ARM) joint ventures, and reskilling opportunities and voluntary separation packages. "We will ensure the employer provides robust social support structures for our members during this period. No worker will face this process alone. We remind the employer that this consultation process must be meaningful and conducted in good faith," Sanane said. Assmang's Beeshoek Iron Ore Mine found itself in dire straits as AMSA vacillates on a crucial three-year contract, reflecting broader challenges within the mining sector. Without a steady influx of revenue, Beeshoek incurs monthly operational expenses of R72 million, translating into annual losses totaling R2.6 billion for AMSA. In a notice to stakeholders, Assmang revealed that its plans for recovery hinged significantly on securing a three-year contract with AMSA for a minimum of 2.2 million metric tons of iron ore per year. However, the recent failure to finalise this contract has left the mine's viability hanging by a thread. Over the past three years, the mine has reported impairment losses of R3.6bn across its assets, underscoring the dire economic realities it faces. Currently, Beeshoek has an operational lifespan of just six years, producing a mere 2.2 metric tons annually. In light of this precarious situation, the NUM has called for full transparency from Assmang regarding the redundancy process. The union said it demands full transparency from the employer and expects full disclosure on the commercial reasons for the proposed retrenchments and why other alternatives were rejected and why the rationale for considering "Care and Maintenance" instead of outright closure. It insisted that it would demand to know the precise number of employees who will be affected, which is currently estimated at 688, the impact on the community and existing long-term contracts, especially those related to outsourced services as well as the proposed selection criteria, details regarding severance pay, and benefits such as medical aid and long-term policies. Trade union Solidarity also voiced concerns on Tuesday regarding the proposed retrenchments, calling them a devastating blow not just to employees but also to the local community around Postmasburg, which relies heavily on the mine's economic contributions. Adéle Rossouw, Solidarity's organiser for the mining sector, emphasised the dire implications of the mine's potential closure, citing its significance as a lifeline for local families. 'The problem is that Beeshoek supplies iron ore only nationally and is therefore at the mercy of the steel industry's own failings. Yet, Beeshoek has always been able to deliver profitable, high-quality ore, and surely there must be a suitable market,' Rossouw said. 'Due to the fact that they do not export, and since their only client can no longer buy from them, the worst possible option is now being considered.' Meanwhile, Assmang's Cato Ridge Works (CRW) operations and business will also close permanently and all 600 affected employees will be retrenched on August 31, 2025. Its Malaysia business is also being sold. BUSINESS REPORT
Zawya
a day ago
- Business
- Zawya
South Africa: Contract collapse with ArcelorMittal jeopardises 688 jobs at Beeshoek mine
South Africa's Assmang is weighing the closure of its Beeshoek iron ore mine after failing to secure a contract to supply its sole customer, the ailing steel producer ArcelorMittal South Africa. The closure of the mine could result in the loss of 688 jobs, Assmang - a joint venture between African Rainbow Minerals and international miner Assore - said in a notice to unions seen by Reuters. ArcelorMittal South Africa had, in what Assmang called "an unexpected turn of events", confirmed in June that it would not sign a three-year contract with Beeshoek despite earlier indications that it would do so, the miner said. "Moving forward, Beeshoek proposes to discuss with the unions the potential closure of Beeshoek," Assmang said in the notice. "The mine has only one significant customer, ArcelorMittal South Africa. The customer is not willing and has declined concluding any long-term contract with Beeshoek mine," it said, adding that several alternatives, including exports, had been considered but ultimately deemed unviable. ArcelorMittal South Africa did not immediately respond to Reuters' requests for comment. The steelmaker reported a R1bn loss in the six months to June 30. It is facing weak local demand, high electricity tariffs, and poor freight logistics, as well as competition from Chinese imports and local scrap metal recycling mini-mills. ArcelorMittal South Africa plans to close its loss-making long steel plants in Newcastle and Vereeniging. It has deferred the closures for two years as it engages with the government, labour representatives and utilities companies, but has said those talks have, so far, not produced a solution. Trade union Solidarity, one of the three recognised unions at Beeshoek, said Assmang had initiated the process to lay off the entire staff at the mine. "Due to the fact that they do not export, and since their only client can no longer buy from them, the worst possible option is now being considered," Adele Rossouw, Solidarity's organiser for the mining sector, said in a statement. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Yahoo
a day ago
- Business
- Yahoo
Assmang considers Beeshoek iron ore mine closure
South African miner Assmang is reportedly contemplating closing its Beeshoek iron ore mine following its failure to secure a contract with its primary customer, ArcelorMittal South Africa, reported Reuters. The potential shutdown of the mine could lead to the loss of 688 jobs, a situation that has prompted discussions with unions. Assmang, a joint venture between African Rainbow Minerals and Assore, communicated the potential closure in a notice to unions. The company expressed that the decision was prompted by ArcelorMittal South Africa's unexpected refusal to sign a three-year supply contract with the Beeshoek mine, despite previous indications of a possible agreement. 'Moving forward, Beeshoek proposes to discuss with the unions the potential closure of Beeshoek,' stated Assmang in the notice. The mine, which relies heavily on ArcelorMittal South Africa as its sole significant customer, has found itself in a precarious position. 'The customer is not willing and has declined concluding any long-term contract with Beeshoek mine,' Assmang added, noting that alternatives such as exports were explored but found to be unviable. ArcelorMittal South Africa, on the other hand, has refrained from commenting on the situation. A spokesperson for the company was quoted as saying: 'Given the complexity of the matters under discussion and our cautionary announcements, we are limited in what can be discussed in the public domain at this stage.' Trade union Solidarity, representing some of the workers at Beeshoek, has been informed about the initiation of the layoff process for the entire staff at the mine. Solidarity's mining sector organiser, Adele Rossouw, was quoted as saying: 'Due to the fact that they do not export, and since their only client can no longer buy from them, the worst possible option is now being considered.' The steelmaker's 1bn reais ($56.75m) loss for the six months to 30 June, has been exacerbated by weak local demand, high electricity tariffs, and competition from Chinese imports and local scrap metal-recycling mini mills. The company has also announced plans to shut down its loss-making long steel plants in Newcastle and Vereeniging, although these closures have been deferred for two years as discussions with the government and other stakeholders continue. ArcelorMittal's search for financial support to postpone the shutdown of its long steel business has been ongoing since March, following its announcement in February to cease operations by April after unsuccessful discussions with the government. "Assmang considers Beeshoek iron ore mine closure" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
IOL News
a day ago
- Business
- IOL News
Assmang's Beeshoek Mine faces uncertain future as employment hangs in the balance
In a notice on the retrenchment, Assmang notified its stakeholders that an approved recovery plan hinging on AMSA committing to a three-year deal to off take at least 2.2 million metric tons per year was scuppered at the final moments. Image: Supplied As South African steelmaker Arcelormittal (AMSA) vacillates on a crucial three-year contract, Assmang's Beeshoek Iron Ore Mine in the Northern Cape has found itself in dire straits, reflecting broader challenges within the mining sector. With a staggering R3.6 billion impairment loss annually and ongoing production declines, the mine is exploring drastic corrective measures, including the potential retrenchment of over 700 jobs. This comes as Assmang, the operator of Beeshoek Mine, has issued a notice of retrenchment to its employees and is conducting a consultation process with labour on the possibility of saving the threatened 700 plus jobs. In a notice on the retrenchment, Assmang notified its stakeholders that an approved recovery plan hinging on AMSA committing to a three-year deal to off take at least 2.2 million metric tons per year was scuppered at the final moments. "In late June 2025, in an unexpected turn of events AMSA confirmed that they would not sign a three-year contract with Beeshoek. Prior to this, they did not give any indication that they were not willing to sign a three-year contract with Beeshoe," Assmang said. "If anything, AMSA had reinforced its intention to enter onto a three-year contract prior to this. This is a disappointing turn of events, one over which the company does not have any control. Moving forward, Beeshoek intends to discuss with unions the potential closure of Beeshoek." The failure to finalise the contract has drastically undermined the mine's operational viability. Without a steady influx of revenue, Beeshoek incurs an average monthly expense of R72 million, leading to annual losses of R2.6bn per annum for AMSA. Over the past three financial years, Beeshoek has recognized impairment losses totalling R3.6bn on all its assets as the mine is no longer economically viable. The mine's operational lifespan currently stands at just six more years, producing a mere 2.2 metric tons annually—a stark contrast to the ambitious plans laid out in previous years. In an effort to navigate the evolving landscape, the Beeshoek management devised numerous strategies aiming to improve sustainability, including a proposal to remove high stripping pits to minimise waste and significantly reduce operational costs. Despite these efforts, production volumes have dwindled, primarily due to reduced offtake from AMSA. The inability to secure a three-year contract has left Beeshoek reliant on a month-to-month agreement, heightening uncertainty and operational challenges. Moreover, the escalation of input costs—ranging from a 60% rise in diesel prices to a 65% increase in bulk explosives—has created significant financial pressure. The mine is now unable to replace ageing machinery or invest in necessary capital for maintenance without the assurance of a long-term contract, further complicating the path to recovery. Trade union Solidarity on Tuesday voiced concerns regarding the proposed retrenchments, calling them a devastating blow not just to employees but also to the local community around Postmasburg, which relies heavily on the mine's economic contributions. Adéle Rossouw, Solidarity's organiser for the mining sector, emphasised the dire implications of the mine's potential closure, citing its significance as a lifeline for local families. 'The problem is that Beeshoek supplies iron ore only nationally and is therefore at the mercy of the steel industry's own failings. Yet, Beeshoek has always been able to deliver profitable, high-quality ore, and surely there must be a suitable market,' Rossouw said. 'Due to the fact that they do not export, and since their only client can no longer buy from them, the worst possible option is now being considered.' Solidarity is expects thorough consultation on practical alternative options for employees, including employment opportunities at other mines in the area. Meanwhile, Assmang's Cato Ridge Works (CRW) operations and business will also close permanently and all 600 affected employees will be retrenched on August 31, 2025. Its Malaysia business is also being sold. 'This decision has been reached after a comprehensive review of CRW's operational and financial position,' said Assmag's parent company, African Rainbow Minerals, last month, which has well known South African businessman Patrice Motsepe as its biggest shareholder. 'Despite sustained efforts to explore alternatives to closure, the operation has continued to experience significant and unsustainable financial losses.' BUSINESS REPORT
News24
2 days ago
- General
- News24
Northern Cape mine faces closure, hundreds of job cuts after AMSA deal collapse
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