Anglo American Platinum Halts Union Talks to Consider Wage Offer

By Ian Walker

LONDON--Anglo American Platinum Ltd. (AMS.JO) Wednesday said talks between the platinum sector and unions to end strikes in South Africa have been suspended indefinitely to allow stakeholders time to reflect on the current offer.

There is an offer of up to 9% on the table, but it's considerably below the Association of Mineworkers and Construction Union's demand of an annual increase of 29%, which the industry believes is "unaffordable," the world's biggest platinum producer said.

Anglo American Platinum said AMCU's revised offer remains significantly above inflation and a further increase "is not sustainable".

"Anglo American Platinum is discouraged by the turn of events at the CCMA [Commission for Conciliation Mediation and Arbitration]," Chief Executive Chris Griffith said, adding that the negotiating team is hopeful the AMCU will work towards a solution that will benefit its members.

"We remain open to further engagements to help bring the strike to an end," Mr. Griffith said.

The industry has offered a three-year settlement to end the strikes. For the lowest paid A-level miners, the first year increase would be 9%, which will go down to 8.0% in the second year and 7.5% in the third year. The AMCU is demanding a 12,000 Rand ($1,108) basic salary for the lowest paid workers over a period of four years, which equates to an increase of 29%.

Separately, Lonmin PLC (LMI.LN) said the strike action has so far lost it around 90,000 saleable platinum ounces and that it won't achieve its sales guidance of 750,000 ounces, cautioning that, until the strike has ended, it is unable to provide specific detail on these changes.

Lonmin Chief Executive Ben Magara said: "We and Amplats [Anglo American Platinum] and Implats [Impala Platinum Holdings Ltd. (IMP.JO)] remain, as we have been throughout this process, committed to finding a positive and sustainable resolution to the dispute in the interest of all our stakeholders and importantly for the sustainability of our business."

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