As part of the proposed plan, the company’s Optimum opencast mines, coal processing plants and associated services will be placed on care and maintenance.
The company said that the decision, which follows a detailed review, will affect around 1,070 jobs.
The move would cut Optimum Coal Mines’ production of thermal coal by at least five million tons a year.
Optimum’s opencast and underground mines annually produce ten million tons of coal, half of which is supplied to power utility Eskom and the remaining is exported.
The underground mining operations of Optimum will continue to operate, to serve Eskom’s coal-fired Hendrina power station.
Glencore said it will explore options to resume operations at the closed mines if economic conditions recover.
