Construction at Exxaro Resources Ltd.'s Grootegeluk coal expansion project in South Africa will be delayed after the company terminated its contract with Group Five Construction (Pty) Ltd. unit Group Five Projects, which went into business rescue proceedings.

About 750 contract workers will be impacted by the decision, the company said in a March 21 release.

Exxaro hired Group Five in 2017 to build a new small coal plant as part of the Grootegeluk Plant 6 expansion, which had been scheduled for completion by the end of May.

The company expects a "minimal" financial exposure of 100 million South African rand as a result of Group Five's financial difficulties, according to a March 22 Mining MX report that cited Johan Meyer, executive head of projects and technology at Exxaro.

Meyer added that the company has all the needed equipment and only needs labor to finish the plant, which is now 85% complete.