SALGAOCAR INTENDS CLOSING IN 30 DAYS

MBABANE – Salgaocar Swaziland Limited (PTY) LTD will be closing shop in 30 days if the price of iron ore does not improve.

Paul Dlamini, Director of Gundane and Sons, a broker hired by Salgaocar Swaziland Limited (PTY) Ltd, confirmed this development. He said he was engaged in a consultation meeting with the employees yesterday to find a way forward. “As part of our proposal, we requested that the employees take unpaid leave for 30 days. They refused this and said they wanted their money. The employees proposed that we retrench them instead of waiting for the 30 days,” he said.

Dlamini also acknowledged that he had not informed Labour Commissioner Khabonina Dlamini on the intention to retrench the employees if the price of iron ore does not improve. “To determine if the employees were affected medically while under our employ, we advised them to undergo medical check-ups,” Dlamini said.

The labour broker said he would again meet the employees on Friday. “We don’t want to retrench them as no one would load the tonnes of stock-pile we have at Ngwenya and Mpaka,” he said.

Recently, it was revealed that there was a serious dispute that had arisen between shareholders of Salgaocar Resources Africa Limited (SRAL) in Singapore, which resulted in the company halting its operations.

Sihle Dlamini, who is the Director of the Salgaocar Board of Directors, stated that in December 2013, the price of iron ore started a downward trend and this impacted negatively on the company’s ability to continue with its operations.

He outlined the reasons in an application filed by the company at the High Court, where it was seeking to be placed under judicial management.
Sihle said, although Salgaocar Swaziland Limited was not fully aware of the nature of the dispute, it involved a challenge by Salgaocar Mining Industries in Goa over the shares in the investing shareholder, SRAL.

He also said the international price of iron ore fell around January/February 2014 from E1 360 per tonne to E550 per tonne. Salgaocar Swaziland Limited has around 50 000 tonnes of ore currently at Port Maputo awaiting sale and in excess of 50 000 tonnes at Mpaka and Ngwenya, all ready for export. The company has been carrying out maintenance of its plant, machinery and jigging plants which they have finished.

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