Exxaro has
decided to terminate its agreement with Group Five Construction subsidiary, Group 5 Projects, with effect
from March 21, following Group Five’s announcement that it has embarked on business rescue
proceedings.
Exxaro in April 2017
appointed Group 5 Projects to build
a new small coal plant as part of
the Grootegeluk Plant 6
(GG6) expansion project at
its Grootegeluk mine,
near Lephalale, in Limpopo.
Barring unforeseen incidents, Group 5 Projects’ work was due
to be completed at the end of May.
In a statement on Thursday, Exxaro noted its
regret that the decision would now result in a delay to the project.
Exxaro has embarked on
discussions to mitigate the business impacts
arising from this situation.
In the meantime, Group 5 Projects’ employees and
subcontractors have moved off-site.
Exxaro is engaging with its
labour support (both legal and human resources) to maintain
stability on site.
“It is indeed a sad day as more than 750 contract workers will be impacted by this decision,” commented Exarro Projects & Technology executive head Johan Meyer. http://www.engineeringnews.co.za/article/exxaro-terminates-group-5-contracts-2019-03-22/rep_id:4136
