Consolidated Murchison, a division of Metorex, has entered into consultations with relevant trade unions regarding the possible retrenchment of about 400 employees, the company said on Thursday.
The consultations were being held under the auspices of the Commission for Conciliation, Mediation and Arbitration, mining company Metorex said in a statement.
”Due to the international decline in demand for antimony and the decrease in antimony prices from approximately $6 500 to $5 000 per ton, management has initiated a review of the cost profile of Consolidated Murchison, of which 50% is labour related,” the statement read.
Antimony is a brittle, silvery white semi-metal used in, among others, semiconductors, batteries, ceramics, rubber, ammunition and matches.
An initial assessment revealed that the changing of the mining methods from open stoping to mechanised cut and fill, as well as increased focus on gold production, would contribute to the sustainability and profitability of the Consolidated Murchison operations.
”As a result Consolidated Murchison has issued a letter of intent to the relevant trade unions and the CCMA regarding the possible retrenchment of 400 of the 1 500 employees currently employed by Consolidated Murchison.”
On Wednesday, trade union Solidarity said it had it had received a section 189 notice from the company.
The union planned to meet with Consolidated Murchison’s management next week to discuss possible alternatives to retrenchment. — Sapa