Kumba Says Police Arrest Protesters, Production to Resume

By Devon Maylie

JOHANNESBURG--Kumba Iron Ore Ltd. (KIO.JO), South Africa's largest iron ore producer, said Tuesday that police have arrested protesting workers from its Sishen mine and the company hopes to resume production soon, as unrest continues to keep some of the country's biggest mines closed.

Kumba, a part of Anglo American PLC (AAL.LN), said 300 workers went on a wildcat strike Oct. 3 to demand an increase in their monthly salary of 15,000 rand ($1,707). Most of the 300 were dismissed Friday while police Tuesday removed about 46 workers who continued to hold mine equipment hostage overnight.

"The company has regained possession of all the heavy mining equipment," Kumba said in a statement, adding that it had laid criminal charges of extortion, intimidation, theft, trespassing, malicious damage to property and contempt of court against the strikers after they repeatedly ignored calls to leave the property.

National Union of Mineworkers spokesman Lesiba Seshoka said Tuesday following the arrests:

"We've always urged workers to come out of the mine because we don't condone these illegal actions. But dismissals will be problematic, especially as we approach the festive season. We want wage talks to be reopened to really address workers' demands. Something that didn't happen in talks last week."

At the same time, Gold One International Ltd. (GDO.AU) said it dismissed about 1,417 workers from the Ezulwini mine Monday and that it will shut the mine for at least 30 days until the labor unrest has been resolved and it is "safe" to resume work.

The NUM said Monday after the dismissals: "The NUM warns the (mine industry body) Chamber of Mines that dismissals would not be a solution to the current challenges facing the industry and that it would only serve to fuel emotions that are already high and inflame the situation further."

The moves follow other companies' dismissals of striking workers ignoring calls to return to work, a move that unions say threatens to fuel more violent protests at mines. Anglo American Platinum dismissed 12,000 miners for participating in the wildcat strike action that continues to keep some of the country's biggest gold and platinum mines shut.

Meanwhile, wage talks for the platinum industry continue and talks between chief executives of the three biggest gold mining companies in South Africa--AngloGold Ashanti Ltd. (ANG.JO), Gold Fields Ltd. (GFI.JO) and Harmony Gold Mining Co. Ltd. (HAR.JO)--the Chamber of Mines and unions including the NUM broke down Monday without a resolution, threatening to lead to an increase in dismissals.

The strikes that spread to Kumba started in August when workers at Lonmin PLC (LMI.LN) went on strike to demand a salary increase. After police fired live ammunition into a crowd of protesters at Lonmin, killing 34, the strikes started to spread to other platinum mines and into gold and eventually iron ore and diamond mines.

Write to Devon Maylie at [e-mail]

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