S.Africa’s Kumba Iron Ore says Transnet strike will hit exports By Reuters

(Reuters) – South Africa’s Kumba ‘s manufacturing and exports shall be hampered by a strike at state-owned logistics firm Transnet, the miner stated on Monday.

Transnet, which operates South Africa’s freight rail community and the entire nation’s ports, declared drive majeure at its ports on Thursday after some staff started a strike over wages.

“Because of the disruption to Transnet’s rail and port companies, the estimated influence on manufacturing is roughly 50,000 tonnes per day for the primary seven days and thereafter roughly 90,000 tonnes per day. Export gross sales shall be impacted by roughly 120,000 tonnes per day,” Kumba stated in an announcement.

Kumba, which exports the majority of its iron ore to China, Europe, Japan and South Korea, expects to provide and export between 38 million and 40 million tonnes of the mineral this 12 months.

The corporate’s manufacturing and exports have been 40.9 million tonnes and 40.2 million tonnes respectively in 2021.

The United Nationwide Transport Union (UNTU) and the South African Transport and Allied Staff’ Union (SATAWU), which collectively characterize most Transnet staff, final week turned down Transnet’s supply of a 3% to 4% wage rise, saying it was beneath South Africa’s annual inflation price, which was 7.6% in August.