Ten percent of workers at Indian-owned Mozambique coal mine are on strike

Vulcan Minerals

17/05/2022 19:57

MAPUTO, May 17 (Reuters) - Over 500 workers at a coal mine
in Mozambique owned by a subsidiary of an Indian company have
been on strike for a week, the company said in a statement on
Tuesday, hurting coal production at a time of peak coal prices. 
    The striking workers, who make up around 10% of the
5,300-strong workforce at the Moatize mine in central province
of Tete, are demanding compensation from Vulcan following its 
purchase of the mine from Brazilian miner Vale, Vulcan said.
    Vale SA  VALE3.SA  said in December it had agreed to sell
the mine in a $270 million deal that included a connected
railway corridor to Vulcan Minerals, a subsidiary of India's $18
billion Jindal Group. urn:newsml:reuters.com:*:nL1N2T619M
    "There was no destruction or vandalism of company or private
equipment. However, the strike did not follow the legal
procedures, because the striking workers did not deliver a prior
notice," Vulcan said in a statement. 
    The statement did not say what steps the company was taking
to resolve the issue and by when it foresees an end to the
strike, but said it would respond to workers claims by May 20. 
    "Vulcan reinforces its objective of guaranteeing the
continuity of the coal operation in the country," it said, but
added that it was not yet possible to estimate the extent of
financial loss due to the strike. 
    The $18 billion Jindal Group also operates Chirodzi coal
mine in the Tete province of Mozambique.

 (Reporting by Manuel Mucari;
Ediitng by Promit Mukherjee and Sandra Maler)
 ((promit.mukherjee@thomsonreuters.com; +27 64833 4448;))