Exxaro wildcat strikes spread to fifth mine

Exxaro, South Africa's second-biggest coal producer, has confirmed that unprotected strikes are now under way at five of its mines: Matla, Arnot, Grootegeluk, Leeuwpan and Inyanda.

Last week the diversified miner posted a 33 percent in full-year earnings, hit by lower coal export prices and volumes.

"The strikes are related to different issues at the mines. Production has stopped at these mines and Exxaro is engaging with unions and managing the situation to bring operations to normality as soon as possible," the company said in a statement. "The mines have implemented contingency plans to continue supplying coal to maintain the functionality of their respective power stations and other customers. Exxaro will continue to work closely with Eskom to ensure the availability of coal supply."

The strikes at Matla and Arnot in Mpumalanga started on March 5 and are related to the non-payment of performance bonuses as the operations missed their performance targets, Exxaro said.

The strike at Grootegeluk in Limpopo started on March 8 and involves "a range of grievances".

"Production has stopped at Leeuwpan from March 9 and Inyanda from (March 11)," Exxaro said. "Contingency plans are in place to supply customers."

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