Glencore can mine again

The Mineral Resources Department has confirmed that it has now lifted the suspension of the licence of Glencore’s Optimum mine.

The company was accused of handling the 380 job cuts in an “inhuman” manner which prompted the mines ministry to order for the suspension of operations at the South African mine.

Optimum said Tuesday it’s seeking bankruptcy protection while attempting to renegotiate an unprofitable power-plant supply contract with state-owned power company Eskom Holdings SOC Ltd. The utility said it expects the terms of the standing agreement to be honored.

Job losses are a politically and socially charged issue in Africa’s most advanced economy, where the unemployment rate stands at about 25 percent – although some analysts say the figure is higher.

“The company engaged on the issues of concern which resulted in the minister suspending their operating licence”.

Today’s decision follows discussions with authorities department in which the company “demonstrated that it had complied with all legal requirements in respect of the retrenchment process and the conditions of its mining right”, according to a report on Jaracanda FM Radio.

Earlier this week the ministry said it had suspended operations at the mine because Glencore was not following the law while retrenching workers.

In December last year, Glencore temporarily shut all of its Australian coal mines, as a way to offset a global oversupply of the commodity and fight declining prices. It did not comment on Glencore’s operations.