A three-year wage agreement has successfully been concluded for the Universal Coal Kangala colliery coal handling and process plant in South Africa.
Universal Coal is an ASX-listed company, focused on South African coal assets.
Mineral Resource Development, the contractor responsible for the Kangala plant was responsible for the wage negotiations which were facilitated with the Association of Mineworkers and Construction Union (AMCU), the majority trade union representing its employees.
The three-year agreement provides the workers with economic increases in wages, a housing allowance and a production related bonus effective immediately and concluding in 2018. Universal Coal is pleased that all parties involved have been able to reach an equitable agreement timeously, which is in the interests and to the benefit of all stakeholders.
The conclusion of the wage agreement was achieved together with record sales for the month of July 2015 of 185 265 t, the highest total monthly tonnage sold to date from Kangala. 173 349 t of domestic thermal coal was delivered to Eskom and 11 916 t exported through the Richards Bay Coal Terminal.
The record also sets the tone for the 2016 financial year laying a great platform for the first quarter targets.