MIDDELBURG – A group of eight former employees is reportedly to have acquired 50 percent ownership of the Exarro-owned Arnot mine in Middelburg through newly formed Arnot Opco.
According to chairperson of Arnot Opco, Mxolisi Hoboi, this comes after the employees combined their pension money and bought the mine which closed its operations in 2015 after its coal supply contract with the power utility, Eskom, came to end and left thousands of employees retrenched.
“We wrote to Exxaro, Eskom and DMR as interested parties informing them of our intentions to buy half of the the mine and restart operations of the mine,” Hoboi told the Highveld Chronicle on Tuesday. “This was done in the interest of saving jobs of the affected employees and bringing back the local economy,” he said.
Hoboi added that they had to bring in a partner with mining experience as one of the requirements by the Department of Mineral and Resources (DMR) to conclude the deal. “That is when we got Wescoal after interviewing various mining companies,” he added. “We also brought in the rest of the retrenched employees as part of ownership,” he said.
A trust, Arnot Holdings, is formed to administer the profit shares of the beneficiaries with 25 percent of the shares to be distributed to the eight employees while the other 25 percent to the retrenched 1000 employees. Wescoal is said to have a 50 percent ownership. Hoboi also stated that Arnot Copco is currently in talks with Eskom to secure a coal supply agreement. “After that we can report that we are ready to restart operations,” he said.
Nonkosi Dlulane, speaking on behalf of the retrenched employees, said she was very excited about the initiative. “This will open job opportunities for the former mine employees who now don’t have work,” she said. “What is also progressive is that although the employees will be re-employed, they will also be part of ownership of the company,” she indicated.
The mine will not only benefit the former employees but will also create new job opportunities for the community of Emalahleni. “I am confident that the Arnot Mine will be soon functioning. Arnot mine can potentially deliver coal to the Arnot Power Station by conveyer belt, resulting in a significant cost competitive advantage. The rate of unemployment of Emalahleni will be decreased,” said Arnot Opco CEO, Bontle Aphane.
Mxolisi Mgojo, CEO for Exxaro said that Exxaro has completed the most important step towards transformative employee empowerment. “Exxaro strives for power to better lives in Africa and beyond and this partnership is a testament to how we live our purpose. We look forward to success and contribution that Arnot Opco will make to the industry and the community,” he said.
