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Kumba Iron Ore, a subsidiary of Anglo American, has warned its production will be hit by the organisation-wide strike at Transnet.
Kumba on Monday said it had received a notice of force majeure from Transnet due to the strike and the miner had subsequently implemented contingency plans to safeguard its assets and minimise the impact on operations.
"However, as a result of the disruption to Transnet’s rail and port services, the estimated impact on production is approximately 50 000 tons per day for the first seven days and thereafter approximately 90 000 tons per day. Export sales will be impacted by approximately 120 000 tons per day," Kumba said in a statement on Monday.
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Workers from the SA Transport and Allied Workers Union (Satawu) are expected to join the strike on Monday following on the heels of the United National Transport Union (UNTU) which began their strike on Thursday.
Transnet and trade unions will today meet for talks under the guidance of the Commission of Conciliation Mediation and Arbitration (CCMA), the company and unions have confirmed.
Transnet has offered workers a wage increase of between 3% and 4% depending on their grade. UNTU and Satawu are demanding increases of 12% and 13.5% respectively.
Transnet has also offered a once gratuity of R5 000 to be paid at the end of the financial year.
Kumba said it will continue to monitor the situation closely and provide further updates, as appropriate. The company’s production and sales report for the third quarter of 2022 is scheduled for release on 27 October 2022.
