Picture: THINKSTOCK
Picture: THINKSTOCK

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THE National Union of Mineworkers (NUM) and Eskom senior executives will meet on Thursday to discuss the renewal of coal contracts that end this month.

Eskom has indicated that when the contracts of the six "cost-plus" mines that supply its power stations with coal expire, it will not renew them. Cost-plus mines bill Eskom for their costs plus an agreed percentage.

The decision to terminate these contracts has irked the union, which is concerned that job losses could follow the Eskom decision.

The mining industry has lost thousands of jobs and is set to lose more following Anglo American’s decision to sell off its SA-based thermal coal mines.

Eskom spokesman Khulu Phasiwe said on Wednesday the meeting at Megawatt Park had been rescheduled to on Thursday by agreement of both parties.

Earlier this week, the NUM threatened a "massive strike" if its members’ concerns were not directly attended to by Eskom acting CEO Brian Molefe.

Mr Phasiwe said on Wednesday the power utility was not cancelling contracts, but doing away with the "cost-plus principle" in exchange for supply-based contracts.

Anglo American announced this week the restructuring will see 85,000 jobs shed globally.

This is almost two-thirds of its current workforce.

NUM spokesman Livhuwani Mamburu said on Wednesday that it had not been consulted before the announcement and was waiting to hear how the global restructuring effort could affect SA.

In August, the government, mining houses and labour struck a 10-point compact agreement to mitigate the effects on employment of a global commodities downturn that included a pledge to sell distressed assets, rather than having them mothballed.

Meanwhile, the South African Police Service in Limpopo said the situation at Steelpoort in Limpopo was calm, but "still tense" after protests.

With Allan Seccombe