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Glencore to go ahead with closure of some Optimum Coal assets

Global mining firm Glencore said on Wednesday it would go ahead with a plan to close some operations at its Optimum Coal subsidiary in South Africa due to weak coal prices, a move which will result in the loss of 600 to 700 jobs.

The Swiss-based company said it would place on care and maintenance certain opencast operations, large parts of the coal processing plants and associated support services at the mine and would consider reopening them if market conditions improve.

South Africa's National Union of Mineworkers had bitterly criticised the company's plan to shut down these assets, accusing the firm of having dismissed other options such as a trade sale of the operation.

"These operations are financially not viable in the current market conditions and ... there are no measures available to avoid the retrenchments," Glencore said in a statement.

Optimum produces about 10 million tonnes of coal annually, half of which is sold to power utility Eskom while the rest is exported.

source: http://www.reuters.com