JOHANNESBURG (I-Net Bridge) -- Both the National Union of Mineworkers (NUM) and African Rainbow Minerals [JSE:ARM] have confirmed a strike action at the Modikwa Mine in Limpopo, with the latter describing it as a wage dispute.
Pieter Rorich, an executive director at ARM, says the strike is legal after the union received a strike certificate, but said he did not expect it to last very long as most settlements over wage increases have been reached.
“We have already finalised increases in basic earnings,” Rorich told I-Net Bridge on Friday, adding that a hike of about 7% has been agreed upon. “We feel we have brought the wages in line with other mines in that area.”
Operationally, Rorich says the mills and operations are running at capacity while mining has slowed down. Rorich says that while no blasting is taking place, workers are being redeployed to the mining area.
Mike Fafuli, a spokesperson from NUM, confirmed the strike action was taking place.
In a statement on Friday, the union said that the strike was also over racial discrimination, and a demand to phase out continuous operations and for a 100% transport subsidy of R162 ($22) per month.
Frans Belani, NUM’s General Secretary, said the discrimination involved the wage gap between white and black miners.
“The wage discrepancy actually creates a trend of permanent inequality in the mining industry when good people are seized with the concern of resolving this terrible legacy,” said Belani.
According to the ARM’s annual report, the company has an effective 41.5% interest in the operation, with the surrounding mining communities owning an effective 8.5%. Anglo Platinum [JSE:AMS], the world’s largest platinum producer, owns the other half of the mine.
Modikwa produced 293,313 platinum group metal (PGM) ounces in the year to end-June 2006, at a cash cost of R3,394/oz ($466.55/oz).
Implats [JSE:IMP] is the world’s second largest platinum producer, and is also set for wage negotiations this year.
ARM shares were untraded in the morning while Angloplat was up 0.55% at R910 compared to a 0.3% rise to R205.12 at rival Impala Platinum.
Spot platinum was quoted at $1,172/1,178, against $1,171/1,176 in New York and off a two-month high of $1,180 hit the previous day.
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