More than 500 workers have been on strike for a week at a coal mine in Mozambique owned by a branch of an Indian group, Reuters quoted the company as saying on May 17, which dented coal production at a time of peak coal prices.
These workers, accounting for 10% of 5,300 at the Moatize mine in central province of Tete, demanded compensation from Vulcan Minerals (a subsidiary of India's $18 billion Jindal Group), which bought the coal mine from Brazilian miner Vale via a $270 million deal that included a connected railway corridor to Vulcan Minerals.
"There was no destruction or vandalism of company or private equipment. However, the strike did not follow the legal procedures, because the striking workers did not deliver a prior notice," Vulcan said in a statement.
The statement did not say what steps the company was taking to resolve the issue and by when it foresees an end to the strike, but said it would respond to workers claims by May 20.
"Vulcan reinforces its objective of guaranteeing the continuity of the coal operation in the country," it said, but added that it was not yet possible to estimate the extent of financial loss due to the strike.
The $18 billion Jindal Group also operates Chirodzi coal mine in the Tete province of Mozambique.
(Writing by Alex Guo Editing by Tammy Yang)
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