Shanduka Coal has confirmed that 220 underground and surface employees at Springlake Colliery will face retrenchment.

Springlake currently employes 295 workers.

Spokesperson for Shanduka, Gugulethu Maqetuka, told the Courier that the company has embarked on a ‘section 189 consultation process  due to difficult market conditions and operational challenges at the underground sections of the mine’.

Section 189 refers to regulations in the Labour Act which requires an employer to give workers 60 days notice of their intention to retrench and follow other laid down procedures.

Mr Maqetuka said the remaining employees will be retained to conduct care and maintenance at the underground sections of the mine, continue to run the opencast section to end of life, the washing plant and the siding.

“The company is also engaging the DMR regarding this matter. Shanduka Coal will ensure that employee engagement is conducted in line with applicable labour legislation and support services will be put in place for the affected employees.”

The deflated coal price has had a tremendous effect on local coal producers.