Glencore, Seriti weigh job cuts in South Africa

Rail problems: A file photo of a Transnet freight train carrying coal in South Africa. The company has been hobbled by sabotage, cable theft and ageing equipment.— Reuters

Johannesburg: Glencore Plc and Seriti Resources Holdings Ltd are in talks to cut hundreds of jobs in South Africa as their ability to export coal is stymied by inefficiencies at the state-run freight company.

Transnet SOC Ltd, which transports the fuel from mines in Mpumalanga province to Richards Bay Coal Terminal, has been hobbled by sabotage, cable theft and ageing equipment. While it has taken steps to improve security and ease procurement rules to lower costs, performance has declined.