South Africa's NUM To Meet Chamber of Mines In Bid To Bring Wage Talks Forward

   Devon Maylie 
 

JOHANNESBURG--South Africa's largest mine union said Tuesday it will meet with the Chamber of Mines Wednesday in a bid to bring forward wage talks across the gold and coal sector that weren't due to start until next year, a move it hopes will curb the spread of illegal strikes and mine violence that has shut some of the country's biggest mines.

The National Union of Mineworkers will put forward wage demands that have been made by workers on strike that range between 12,500 rand ($300) a month to ZAR18,000 rand a month, and as high as ZAR21,500 a month as made by workers at Petra Diamonds, NUM Secretary General Frans Baleni said.

He also said the union is aware that higher wages could lead to mine closures so it will take that into account when the union meets.

In addition, he said violence has increased at Anglo American Platinum Ltd. (AMS.JO), after the company announced its intention to start firing those on the illegal strike last week. Mr Baleni said five people died around Rustenburg over the weekend due to strike related violence.

The industrial action is straining an already tight balance sheet for many mining companies, particularly those in the platinum sector.

AngloGold Ashanti Ltd. (ANG.JO) Chief Executive Mark Cutifani says 50% of the platinum industry is losing money even before agreeing to additional wage hikes and that much of the gold sector had already been looking at ways to downsize unprofitable operations. Labor costs account for around 60% of mining costs at gold and platinum mines.

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