South Africa's mines minister calls for quick platinum wage deal
Reuters
Published Jul 15, 2016 09:59AM ET
Updated Jul 15, 2016 08:12PM ET
South Africa's mines minister calls for quick platinum wage deal
CARLETONVILLE, South Africa (Reuters) - Platinum mining firms and South African trade unions should conclude wage talks quickly to avoid the protracted disputes that led to a five-month strike two years ago, mines minister Mosebenzi Zwane said on Friday.
"I wish that everybody can negotiate with cool heads and avoid a strike and speedily resolve these negotiations," he told reporters at a Sibanye Gold (J:SGLJ) mine.
Talks between unions and the mining companies started this week.
The Association of Mineworkers and Construction Union (AMCU), the biggest union in the sector, is demanding pay hikes of more than 50 percent, while a smaller union, the National Union of Mineworkers, is seeking a 20 percent increase.
The demands are well above inflation at 6.1 percent. Africa's most developed economy is struggling due to lower commodity prices and drought. The International Monetary Fund estimates almost zero growth this year.
South Africa has the biggest and most lucrative platinum reserves but labor unrest and regulatory uncertainty have dampened investor appeal.
The strike in 2014, which was led by AMCU, hit Anglo American (LON:AAL) Platinum (J:AMSJ), Impala Platinum (J:IMPJ) and Lonmin (L:LMI) (J:LONJ), forcing them to cut jobs, sell mines and, in some cases, make cash calls to investors.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.