Solidarity concerned about possible closure of Beeshoek iron ore mine

It is with great concern that Solidarity has taken note of the possible closure of Assmang’s Beeshoek iron ore mine in the Northern Cape. The trade union says it will see to it that the interests of its members and employees of the iron ore mine come first should a retrenchment process become a reality at this well-known mine.

Employees at the mine have received notices in which a section 189 process is mentioned as a possible way out. No decision has yet been made, but in the notice, Assmang contends that the Beeshoek Mine is facing critical threat as continued operations might not be sustainable going forward.

This despite initial hopes that the mine’s single biggest client, ArcellorMittal SA (AMSA), would conclude an agreement with Assmang Beeshoek in terms of which the mining and processing of iron ore would continue for another two years, after which the sale of equipment would follow.

AMSA is Beeshoek’s main client, but after a desperate intervention this year, it received a temporary bailout to prevent the retrenchment of 3 500 employees, and AMSA itself is therefore also experiencing serious financial pressure.

The obstacles that are impeding the iron industry – such as high electricity and transport costs from Eskom and Transnet –- and the government’s sluggish intervention to counter the challenges the industry is facing, therefore also have a major negative impact on mining in South Africa.

According to Adéle Rossouw, Solidarity’s organiser for the mining sector, retrenchment could have far-reaching consequences for the communities of Beeshoek and Postmasburg. “Assmang Beeshoek is one of the country’s oldest iron ore mines, and its closure will hurt an entire community. There are families here who have worked at Beeshoek for several generations since mining operations began in 1964,” Rossouw said.

According to her, consultation with Assmang Beeshoek’s management is continuing in an attempt to discuss alternative options – including employment for employees at other mines in the area.

According to her, consultation with Assmang Beeshoek’s management is continuing in an attempt to discuss alternative options – including employment for employees at other mines in the area.