Exxaro re-structure may trigger retrenchments

Johannesburg, South Africa — MININGREVIEW.COM — 03 November 2010 – Diversified South African-based resources group Exxaro Resources Limited (Exxaro) reports that it intends to restructure parts of the group to improve productivity, reduce cost of services and operations, and streamline its organisational structures.

In a news release issued here, the group said it had informed its respective labour unions that it was contemplating retrenchments, and that the proposed restructure could lead to about 300 retrenchments.

“A process of consultation will start this month with union representatives and employees,” the release added.

“We are doing everything possible to limit the impact on our employees, and the consultation process will examine all options,” it stated. “However, the future sustainability of the group remains a pressing need in the context of the demanding business environment in which we operate, and we must ensure that we have a streamlined and competitive current business to meet our growth aspirations,” said Exxaro CEO Sipho Nkosi.

Exxaro “’ which has interests in coal, mineral sands, base metals, industrial minerals and iron ore commodities “’ currently employs about 10 500 people.