Iron ore and Coal

Buffalo implements ‘no work, no pay’ for unusable services employees

Buffalo implements ‘no work, no pay’ for unusable services employees
Mining News Pro - Coal mining company Buffalo Coal said on Wednesday that it had implemented a ‘no work, no pay’ policy for those employees whose services could not be utilised since the extension of national lockdown on April 17.

In its fourth Covid-19 update, Buffalo stated that it had successfully implemented measures allowing it to achieve the utilisation of 50% of its employees at its mining operations as from May 4.

The Toronto- and Johannesburg-listed Buffalo has a majority interest in two operating coal mines in KwaZulu-Natal through its 100% interest in Buffalo Coal Dundee, a South African company which has a 70% interest in Zinoju, which holds a 100% interest in the Aviemore anthracite mine and the Magdalena bituminous mine.

“The safety, health and wellbeing of our employees, their families, contractors and communities in which we operate remains our primary concern,” the company, headed by CEO Emma Oosthuizen, stated, adding that it had implemented various risk-based mitigating measures.

These included:

- transport arrangements for employees from their homes to place of work;
- rigorous screening, testing and data collection programmes for all employees and contractors accessing the mining operations;
- certain employees being allowed to work from home; and
- quarantine facilities being provided for employees who may test Covid positive.

The company stated that consultations had been initiated with the various trade unions to identify and investigate alternatives to alleviate the financial strain that the implemented policy would have on affected employees.

Potential impacts of the Disaster Management Regulations and amendments on operations would continue to be measured and managed proactively.

Further updates would be communicated to stakeholders as new information became available.

On April 14, Mining Weekly reported Buffalo`s consolidated profit of R33.2-million in the three months to December 31, and R36.8-million in its 2019 financial year, which compared with a consolidated profit of R26.5-million in the fourth quarter of 2018, and a consolidated loss of R68.4-million in the 2018 financial year.

The 154% increase in profits for 2019 compared with 2018 was, the company said, mainly the result of an R8-million impairment loss of property, plant and equipment in 2019, compared with R67.5-million in 2018; R7.8-million of net foreign exchange gains in 2019 compared with R57.4-million net foreign exchange losses in 2018; a positive fair value adjustment on conversion option and warrant liability of R38.4-million in 2019 compared with R900 000 in 2018; marking a 32% decrease in general and administration, and a 33% decrease in finance expenses over comparative periods.

The improvements were partially offset by a 51% decrease in gross profit which was mainly driven by the closure of the Magdalena mine in the third quarter of 2018.

Buffalo’s primary listing is on the TSX-Venture Exchange, with its secondary listing on the JSE AltX exchange.According to Mining News Pro -

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