He showed Sowetan a letter from his employer which stated that his last day of work would be on September 30.
"Consequently, your employment with Evergreen Mining SA will come to an end on the said date. We understand the difficulties this situation may pose and avail ourselves of any further assistance that you might require. The onus resting on you to contact the company," read the letter.
Allan Seccombe from the Minerals Council of SA said the mining industry had always been under strain in recent years and this was largely because of operation costs and load shedding.
"The mining industry, like the rest of the economy, is under tremendous constraint from shortages of electricity, with decreased production during recent years linked closely to the difficulties Eskom has experienced with load shedding. The cost of electricity for large industrial users like mines and smelters has increased more than 500% since 2008, leading to the rapidly rising input costs of not only energy but goods and services from suppliers," said Seccombe.
He said the constraints on bulk mineral exports caused by deteriorating rail and port performances are contributing to decreased revenues.
"We estimate that in 2022 the mining industry lost revenue of R50bn when measuring railed deliveries of minerals to the ports were measured against targeted volumes. The loss in 2021 was R35bn. These constraints are coupled with lower commodity prices in minerals like coal and platinum group metals (PGMs) for example. Some mines are restructuring to cope with high input costs, reduced production, and lower commodity prices," said Seccombe.
At least five mines in the North West plan to retrench workers this year including Sibanye Stillwater which last month said it would lay off about 4,100 employees and contractors. Last month, Impala Platinum said it would offer voluntary retrenchment packages to reduce the headcount and save costs in the face of a 40% drop in palladium prices and a 14% drop in platinum prices this year.
Another mineworker, who worked at Bakubung, said nothing could have prepared him for the retrenchments. The man, who asked not to be named, said he was given a section 189 letter two weeks ago, and his last day at the mine is February 29 next year. He has been with the mine since 2018.
"So many families have been affected by this. We have people who support several families with their one salary. It is December and now they are retrenching us and telling us there is no chance of reemployment and we have already made plans.
"I also have debts to pay. I have a bond and a vehicle to pay for. I am also taking care of my brother who is disabled, my two sisters who are not working, and my mother as well. There were no signs at all that the mine was losing money or was not making money. Even the general manager didn't have a general meeting with the workers. We just received the letters. We don't know what the future holds ," said the man.
NUM's Luphert Chilwane said retrenchment should be the companies' last resort.
"The retrenchments are coming from different angles – all over. Consultations as we speak right now are a lot. The companies that we are busy with are Sibanye, Anglo Platinum, Sereti Coal Mine, Glencore coal mine, Kumba Iron Ore, and other small mines. In our calculation, we are looking at more than 10,000 workers being retrenched from now up to the end of January next year," said Chilwane.
'I now live on cabbage' - retrenched mineworkers share their pain
Mining companies blame power outages for the job losses
Image: ANTONIO MUCHAVE
Until a few months ago, mineworker Mvuso Matomela would spoil himself with chicken and a piece of steak but these days he can only afford cabbage.
Born in the Eastern Cape, Matomela is among thousands of mineworkers who have been retrenched by mining companies in the North West who are struggling to keep business because of escalating input costs compounded by power outages. According to the National Union of Mineworkers (NUM) at least 10,000 more jobs will be lost between October and January next year.
Matomela worked for Evergreen Mining Services contracted to Bakubung Mine in Rusternburg as an operator before he was laid off with other workers in September. He used to get paid a sizable salary and now he can hardly afford R10 and struggles to pay his rent.
Sowetan met with him at his house in Ledig this week and he said he was not considering going back home in Tsomo to be with his four children. He said he would rather hustle for another job opportunity in North West.
"I can't even go back home while I am jobless. That is not even an option. I am busy looking for a job at other mines and hopefully I will get something. I have already went for an interview at a mine in Limpopo but what if they call me and I don't have money to travel?" he asked.
When Sowetan met him on Wednesday afternoon, Matomela said he had not eaten as he did not have any money.
"I haven't eaten since morning. It has been really tough and right now I am just waiting for my provident fund money and UIF which I dont know when I will get. We can't even eat meat. We now eat cabbage.
"The landlord is also waiting for rent and I don't even know what I am going to say at this point," he said.
Image: ANTONIO MUCHAVE
He showed Sowetan a letter from his employer which stated that his last day of work would be on September 30.
"Consequently, your employment with Evergreen Mining SA will come to an end on the said date. We understand the difficulties this situation may pose and avail ourselves of any further assistance that you might require. The onus resting on you to contact the company," read the letter.
Allan Seccombe from the Minerals Council of SA said the mining industry had always been under strain in recent years and this was largely because of operation costs and load shedding.
"The mining industry, like the rest of the economy, is under tremendous constraint from shortages of electricity, with decreased production during recent years linked closely to the difficulties Eskom has experienced with load shedding. The cost of electricity for large industrial users like mines and smelters has increased more than 500% since 2008, leading to the rapidly rising input costs of not only energy but goods and services from suppliers," said Seccombe.
He said the constraints on bulk mineral exports caused by deteriorating rail and port performances are contributing to decreased revenues.
"We estimate that in 2022 the mining industry lost revenue of R50bn when measuring railed deliveries of minerals to the ports were measured against targeted volumes. The loss in 2021 was R35bn. These constraints are coupled with lower commodity prices in minerals like coal and platinum group metals (PGMs) for example. Some mines are restructuring to cope with high input costs, reduced production, and lower commodity prices," said Seccombe.
At least five mines in the North West plan to retrench workers this year including Sibanye Stillwater which last month said it would lay off about 4,100 employees and contractors. Last month, Impala Platinum said it would offer voluntary retrenchment packages to reduce the headcount and save costs in the face of a 40% drop in palladium prices and a 14% drop in platinum prices this year.
Another mineworker, who worked at Bakubung, said nothing could have prepared him for the retrenchments. The man, who asked not to be named, said he was given a section 189 letter two weeks ago, and his last day at the mine is February 29 next year. He has been with the mine since 2018.
"So many families have been affected by this. We have people who support several families with their one salary. It is December and now they are retrenching us and telling us there is no chance of reemployment and we have already made plans.
"I also have debts to pay. I have a bond and a vehicle to pay for. I am also taking care of my brother who is disabled, my two sisters who are not working, and my mother as well. There were no signs at all that the mine was losing money or was not making money. Even the general manager didn't have a general meeting with the workers. We just received the letters. We don't know what the future holds ," said the man.
NUM's Luphert Chilwane said retrenchment should be the companies' last resort.
"The retrenchments are coming from different angles – all over. Consultations as we speak right now are a lot. The companies that we are busy with are Sibanye, Anglo Platinum, Sereti Coal Mine, Glencore coal mine, Kumba Iron Ore, and other small mines. In our calculation, we are looking at more than 10,000 workers being retrenched from now up to the end of January next year," said Chilwane.
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