Coal of Africa falls following strike at Mooiplaats mine

Coal of Africa, a South Africa-based mining exploration and development company, fell on Tuesday on confirmation that employees at its Mooiplaats mine in South Africa have gone on strike.

Coal of Africa, a South Africa-based mining exploration and development company, fell on Tuesday on confirmation that employees at its Mooiplaats mine in South Africa have gone on strike.

The employees, who are associated with the National Union of Mineworkers, were protesting against the suspension of four workers, due to alleged misconduct and breach of the picketing rules during a 'legal' strike in October 2012.

Coal of Africa reported that all four underground sections have stopped operations and management is in discussion with NUM representatives to resolve the matter and ensure the workers resume their shifts.

When fully operational the mine produces 6,000 tonnes of coal a day, yet sporadic disruption has hampered production there.

Moreover, the company announced on November 7th that it had begun a formal restructuring process intended to move the operation to sustainability and likely to result in job losses. The colliery directly employs 368 people of which 244 are NUM members.

For the year ending June 30th 2012 the Coal of Africa delivered a pre-tax loss of approximately $150m dollars (2011: $218m).

The stock has fallen 80% over the past year from a high of 73.5p to 11.5p at 14:30.

CM

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

How the stamp duty holiday is pushing up house prices
Stamp duty

How the stamp duty holiday is pushing up house prices

Stamp duty is an awful tax and should be replaced by something better. But its temporary removal is driving up house prices, says Merryn Somerset Webb…
25 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020