Miningweekly.com reported that share price of JSE listed black owned coal-mining company South African Coal Holdings on Monday plunged more than 65% after the company announced that it would cease operating for three months and place its mines on care-and-maintenance.

Mr Grant Scrutton CEO of SACMH told Mining Weekly Online that SACMH was giving itself a three-month opportunity to restructure into a viable business model in the face of the current difficult market conditions and significantly reduced coal prices.

The price of SACMH’s shares fell from 58c a share to 20c a share on the news that the SACMH board had resolved to cease operations with immediate effect and to place its mines on care and maintenance.

The board would, during the interim, review the company’s capital requirements and its cost structure and decide on the business’ future direction.

Mr Grant Scrutton said that “Nothing is off the table. We’re dealing with this as open-mindedly as we can, with the assistance of our bankers.”

He estimated that only two to three members of staff would be required to keep the mine on care-and-maintenance, from a contractor complement of some 120 people and a permanent staff of 18.

(Sourced from miningweekly.com)