Over 500 workers at Optimum Colliery are set to retain their jobs as Liberty Coal transitions its mining operations to Liberty Mine Services (LMS), a subsidiary within the Liberty group.
The company announced on Friday that LMS will take over as the principal mining contractor, a shift it positions as the crucial next step in a long-term plan to stabilise the mine.
For the workforce, the change comes with a major reassurance: the vast majority of employees will keep their jobs, transferred directly to the new contractor.
“This is an exciting new chapter for Optimum,” said Liberty Coal’s acting CEO, Hlayiseka Chauke.
“Our goal is to establish a stable, sustainable, and well-managed mining operation that delivers long-term value for all stakeholders. Ensuring workforce stability is a critical part of that process.”
That stability comes in the form of a Section 197 agreement, a provision in South African labour law that governs the automatic transfer of employees when a business is sold or, as in this case, when a service is insourced.
Liberty Coal said the agreement covered approximately 530 workers currently employed by the outgoing contractors, Salaria and the Veralogix group, and the transition is already underway.
According to the company, the first group of employees has been onboarded with LMS, with the remainder set to join the new subsidiary by the end of the month.
The decision to bring operations under the Liberty umbrella followed what the company described as “historic concerns with performance and delivery” from the previous contractors. The move effectively cut out the middlemen after a period of operational frustration.
Transfer of employment automatic
The company said the change was way more than just a managerial shuffle. Liberty Coal had already been investing in significant capital projects at the colliery, including the rebuilding of massive draglines.
The company now says it will introduce a new fleet of mining equipment as operations ramp up under LMS management.
For employees, the announcement ends a period of uncertainty. The transfer of their employment is automatic under the Section 197 agreement, meaning their years of service and existing terms and conditions are legally protected. Union representatives had been engaged in the process to ensure a smooth handover.
“We have completed engagements with unions, employee representatives, and stakeholder forums to ensure a smooth, transparent, and fair process,” the company stated, acknowledging the critical need for social buy-in at a mine with a complex history.
The pivot to an in-house model represented a significant bet by Liberty Coal on its ability to succeed where external partners had struggled.
The company was framing it not just as a change of contractor, but as the true beginning of its turnaround plan for the asset.
“With the introduction of Liberty Mine Services and increased investment in equipment, systems, and workforce stability, Liberty Coal is setting Optimum Colliery on a path toward reliable, responsible, and profitable production.”
The immediate takeaway for hundreds of workers and the surrounding community in Mpumalanga would be relief, in a sector often defined by job losses and uncertainty.
