South Africa’s Kumba Iron Ore plans to cut around 190 jobs at its Sishen and Kolomela mines, trade union Solidarity said on Thursday.
“Kumba Iron Ore … announced that it would soon start with a large-scale restructuring process at its Sishen and Kolomela mines. Around 190 employees are affected by the process,” Solidarity said in a statement.
Kumba’s share price fell to a 6-1/2 year low this week, tracking record low iron ore prices in China on weak demand and concerns about a global supply glut in the key steel-making ingredient.
But Dalian iron ore futures rebounded on Thursday, rising as much as 8%. Kumba’s shares followed suit, jumping over 7%.
Steel demand remains soft and this has left traders cautious about the sustainability of the rebound.
Kumba is a unit of global mining giant Anglo American , which is also trying to divest from its loss-making platinum assets in South Africa in the face of depressed prices
Source: moneyweb.co.za