Magnetite trucks few and far between on R40
An estimated 650 truk drivers and owners have had their contracts cancelled
MBOMBELA – Frequent road users travelling on the R40 and N4 might have noticed that the number of trucks along the way has been dwindling.
But one man’s gain is certainly another man’s pain as no less than two trucking companies have complained about the apparent cancellation of their contracts to transport magnetite from Phalaborwa to Maputo, and the short notice given.
Two logistics companies, Metreta and Senatema, were contracted to deal with the transport of the magnetite. Lowvelder’s attempt to get feedback from them was unsuccessful.
The paper had previously reported that at one stage this road had from 350 to 500 ore-carriers per day – a huge thorn in the side of others travelling on these roads.
This was according to Mr John Robinson of the R40 Truck Forum, a lobby group which aims to find solutions to the pressing issue of increasingly heavy carriers.
Although the Palabora Copper mine in Phalaborwa has not closed its doors, it has in fact stopped producing magnetite and an estimated 650 truck drivers and owners have had their contracts cancelled just before the holidays.
Mr Ray Duba, a representative of Palabora Copper told Lowvelder that the mine would in fact have preferred to make use of the railway, but that Transnet’s infrastructure would not cope with the load. However, the newspaper had previously reported that Transnet had identified the railway corridor between Phalaborwa and Komatipoort as a priority area.
Considerable funds, to the tune of R300 billion, had been earmarked by Transnet Freight Rail to re-establish the line to enable it to handle double the current volume by 2019.
Palabora Copper previously stated its intention to transport all magnetite for export via rail within the next three to four years.
Duba added that the reason for the cancellation of contracts with logistics and transport companies, was the low market price for magnetite, a by-product which the mine only started to produce in 2011.
This was also the time they started making use of the carriers.
The mine has been producing copper since 1966 and was formerly an open-cast operation.
It has since gone underground and one shaft will possibly reach its end by 2016, but the owners and shareholders will be sinking a second shaft in the near future, extending the life of Palabora Copper for approximately another 25 years, as it is the only producer of refined copper in the whole of southern Africa.
Duba confirmed that the mine has now stopped its magnetite mining operations as its low market price has led to the mine running at a loss for the past few months.
