Business Times reports that precious metals producer Sibanye-Stillwater, whose SA gold mines were rocked by a three-month strike, flagged a risk of supply if employees embarked on industrial action at its platinum group metals (PGM) operations.

The group indicated on Thursday: “Though many of the SA PGM producers have concluded wage negotiations, any social disruption or industrial action could further affect supply.” Sibanye is the only PGM producer that has yet to sign a wage deal. Its peer Anglo American Platinum struck a five-year wage deal with 90% of organised labour after five meetings in May, Impala Platinum signed a five-year wage agreement a month later with the Association of Mineworkers and Construction Union (Amcu) and Northam signed a five-year deal at its Zondereinde mine a year ago. Sibanye’s Richard Stewart advised that Sibanye had formally commenced wage negotiations at its PGM operations at the end of July and into early August. Stewart commented: “We publicly heard from the Amcu that they would like to conclude these negotiations in four meetings, and I think that is something we would agree with if possible. From our perspective we would like to see these concluded by the end of the third quarter.” Sibanye CEO Neal Froneman said employees wanted a five-year wage agreement “and we hope the unions will take note of what their members want”. Stewart said longer wage agreements would bring more stability, but it was important to recognise that “we cannot pay a premium for a long agreement.” He added: “We are in a volatile inflationary environment. To be fair to all stakeholders including employees, if you are considering a longer-term agreement, that needs to be flexible to cater for an inflationary environment [.] in the future, and that works both ways.”

• Read the full original of the report in the above regard by Dineo Faku at Business Times (subscriber access only)

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