Devon Maylie
JOHANNESBURG--South Africa's largest mine union said Tuesday it
will meet with the Chamber of Mines Wednesday in a bid to bring
forward wage talks across the gold and coal sector that weren't due
to start until next year, a move it hopes will curb the spread of
illegal strikes and mine violence that has shut some of the
country's biggest mines.
The National Union of Mineworkers will put forward wage demands
that have been made by workers on strike that range between 12,500
rand ($300) a month to ZAR18,000 rand a month, and as high as
ZAR21,500 a month as made by workers at Petra Diamonds, NUM
Secretary General Frans Baleni said.
He also said the union is aware that higher wages could lead to
mine closures so it will take that into account when the union
meets.
In addition, he said violence has increased at Anglo American
Platinum Ltd. (AMS.JO), after the company announced its intention
to start firing those on the illegal strike last week. Mr Baleni
said five people died around Rustenburg over the weekend due to
strike related violence.
The industrial action is straining an already tight balance
sheet for many mining companies, particularly those in the platinum
sector.
AngloGold Ashanti Ltd. (ANG.JO) Chief Executive Mark Cutifani
says 50% of the platinum industry is losing money even before
agreeing to additional wage hikes and that much of the gold sector
had already been looking at ways to downsize unprofitable
operations. Labor costs account for around 60% of mining costs at
gold and platinum mines.
Write to Devon Maylie at devon.maylie@dowjones.com
