Bloomberg writes that when the world’s biggest platinum miners sit down to hammer out a wage deal with the Association of Mineworkers and Construction Union (Amcu) this week, they will hold two potentially winning cards in reserve, namely the cash and metal stockpiles to endure a strike.
Those buffers may prove crucial as Anglo American Platinum (Amplats), Impala Platinum (Implats) and Sibanye Gold meet with Amcu on successive days from 9 July. Amcu led SA’s longest-ever platinum mining strike in 2014. Analyst Ben Davis commented that Amplats had the balance sheet to withstand a strike, plus its key operation was more mechanised, while Implats and Sibanye “are certainly the more exposed, but have the most to lose from large wage increases for the sustainability of their businesses.” Sibanye, Amplats and Implats all declined to comment on the size of their stockpiles of platinum-group metals. Jana Marais, spokesperson for Amplats, said: “We don’t believe there is an appetite for a prolonged strike in the current economic climate. Nevertheless, we have measures in place to ensure we will be able to meet our obligations to our customers.” While Amcu has said its demand of a pay increase of as much as 48% was justified as higher palladium and rhodium prices have boosted company earnings, producers have warned that such a settlement would lead to job losses and mine closures.
- Read the full original of Felix Njini’s report in the above regard at BusinessLive
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