Seriti Power, a coal miner in South Africa, is contemplating the possibility of laying off approximately 600 employees at its Klipspruit colliery, situated in the Mpumalanga province. This move is prompted by a confluence of factors, including challenges with Transnet, a decline in domestic coal prices, and operational issues, which have driven Klipspruit's delivered cost to R1,314 per saleable ton. In contrast, the current average domestic coal price stands at R400 per ton, which is significantly below the mine's budgeted price of R500 per ton.

While export prices have recovered and now exceed $100 per ton, higher than the mine's budgeted price, Seriti has encountered difficulties in shipping sufficient volumes for export. Additionally, the company faces increased costs associated with diverting more material to the domestic market.

If no action is taken, Klipspruit is projected to incur losses ranging from R657 million to R949 million in the 2024 financial year. A letter signed by Ndumi Khoza, Seriti's chief people officer, highlighted the severity of these projected losses, emphasizing that they not only affect Klipspruit's future but also imperil the entire Seriti group.

Seriti Power, which comprises collieries acquired from South32 in 2021, currently employs 3,554 permanent workers in South Africa, with 826 employed at Klipspruit. The potential job cuts could impact 775 employees, with 605 of them facing possible redundancy.