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00:00 South Africa's Kumba Iron Ore on Tuesday announced plans to cut 490 jobs, as it struggles to
00:07 overcome persistent rail bottlenecks. That adds to thousands of planned job losses across
00:13 the mining sector, due to infrastructure challenges and weaker commodity prices.
00:19 Kumba, a unit of Anglo-American, said in December that it was curbing production to match the
00:25 limited capacity at Transnet. The state-owned rail operator has been hit by shortages of
00:30 locomotives and spares, as well as rampant cable theft and vandalism.
00:37 In a conference call on Tuesday, Kumba CEO Mpumizu Kalala said that the proposed job
00:42 cuts, combined with the restructuring of head office roles which started last September,
00:47 would affect 10 per cent of the workforce. The company said the restructuring is necessary
00:52 for Kumba to remain competitive. Its shares fell more than five per cent following the
00:58 announcement. The news also comes after Anglo-American
01:03 Platinum on Monday said it would cut 3,700 jobs in South Africa. That's after a sharp
01:10 decline in metal prices slashed annual profit by 71 per cent. Its competitors, Sabanye Stillwater
01:18 and Impala Platinum, are also planning layoffs. Job losses across South Africa's mining
01:25 sector will likely put pressure on the ruling ANC ahead of elections due later this year.
01:31 South Africa's official jobless rate, measured at 31.9 per cent in the third quarter of 2023,
01:38 is among the highest in the world.
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