Exxaro coal plant delayed as it cuts ties with Group Five
More than 750 contract workers will be affected by the decision
The completion of a coal plant at Exxaro’s Grootegeluk mine will face delays after the mining company terminated its agreements with the distressed Group Five construction company. Exxaro announced on Thursday it has terminated its agreements with a Group Five Construction subsidiary, Group Five Projects, with immediate effect. This follows the construction company’s announcement on March 12 that it has started business rescue proceedings, citing severe cash flow difficulties. Business rescue is a provision in terms of the Companies Act that allows for the rehabilitation of financially distressed companies. Group Five is the latest in a string of construction companies that has buckled amid challenging market conditions in SA. Exxaro appointed Group Five Projects on April 3 2017 to construct a new small coal plant, which forms part of its larger R4.8bn Grootegeluk Plant 6 expansion project at its Grootegeluk mine near Lephalale, Limpopo. Group Five’s project scope was due to be comp...
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