The coal price downturn-triggered review into Glencore’s Optimum Coal business in the country identified that the open cut operations would need to be placed on care and maintenance.

The flagged cutbacks would also impact “large portions” of the coal processing plants and associated support services.

“The proposed closure of these operations would affect approximately 1070 employees,” Glencore said.

The cuts account for half of Optimum’s 10Mtpa of saleable coal output with the underground mining operations still considered economic.

While Glencore said it considered the “potential closures”, it has also informed South Africa’s mining department and relevant unions of them and discussed redeployment opportunities.

“Optimum will now enter into a Section 189 process with the recognised unions and employees to determine the settlement for all affected employees,” Glencore said.

“Optimum will ensure that the employee engagement process is conducted in line with applicable labour legislation. Where vacancies exist, Optimum will explore options for redeployment across the Glencore South African coal operations as well as putting in place support services for affected employees and their families.

“Glencore continues to review all coal operations in the prevailing economic climate.”

The Optimum coal mining complex had an estimated workforce of 3700 employees in 2014.