Lonmin Share Discussion Threads

[pixi] 30/5/2014 17:10

The strikers must be hungry if they've been on strike since 19 January.

[mj19] 30/5/2014 14:17

www.sabc.co.za/news/a/6944ae80442e905f82f6fa59177e72e5/Talks-to-end-Amcu-strike-resume

alks between the inter-ministerial task team, platinum producers and the Association of Mineworkers and Construction Union (Amcu) set up by Mineral Resources Minister Ngoako Ramathlodi will continue on Friday morning.

On Thursday meetings took place from early in the morning until late in the afternoon in an effort to resolve the 18 week-old platinum strike.

Mineworkers affiliated to Amcu downed tools on January 23 demanding a R 12 500 basic monthly salary.

We are engaged with all stakeholders, reinforcing all other processes that are ongoing

Ramatlhodi's spokesperson, Mathlodi Moufhe says there are no winners in the current situation. "So we are at a stage where we are saying we all have to drink from the same well. There is no way in which this strike can go on for too long because it has already been going for far too long."

Moufhe says: "We are engaged with all stakeholders, reinforcing all other processes that are ongoing. We are not substituting any process. But we are basically saying that this shows that everybody in South Africa is concerned about this strike and we hope that the affected stakeholders, workers and employers, will be able to see reason."

Meanwhile an AMCU negotiator in the current platinum sector strike has suggested that mining companies could be involved in tax and wage evasion.

Speaking at a Cape Town Press Club, Brian Ashley, says they welcome the decision by Ramatlhodi, to look into the books of the companies to see how the strike can be resolved.

Ashley says three companies have been selling their platinum under the market price. He claims this has resulted in Lonmin losing R1.9 billion, Impala R2.8 billion and Amplats R11 billion rand through transfer pricing and mis-invoicing.

[witheco] 24/5/2014 19:52

I must admit AMCU, has raised the stakes, more than NUM could ever had dreamed of, it was a very strong victory for the mining community and workers in south africa. Theyhave set a baseline, that can't be matched easily through competition or immigration, nor on a resource that can be expendable from elsewhere. Its a solid result from AMCU, well in the net, and unreversable. Well scored, and with respect AMCU.

[witheco] 24/5/2014 19:12

However, none of the parties are expected to talk to the media on what has been concluded. That's the word from Amcu's legal representative, Larry Dave.

[witheco] 24/5/2014 19:11

An agreement between the Association of Mineworkers and Construction Union (Amcu) and platinum miners, Anglo Platinum, Impala Platinum and Lonmin, has been reached.

[outfly] 23/5/2014 14:55

Looks like things could be going well.

[finethings] 23/5/2014 14:50

REGULATORY RELEASE





23 May 2014

LABOUR COURT MEDIAtion

The following statement was released in Johannesburg by Lonmin Plc ("Lonmin" or "the Company") today, in conjunction with Anglo American Platinum Limited and Impala Platinum Holdings Limited:



Johannesburg, 23 May 2014- Platinum producers Anglo American Platinum Limited (Amplats), Impala Platinum Holdings Limited (Implats) and Lonmin Plc (Lonmin) advise that facilitated mediation between the companies and the Association of Mineworkers and Construction Union (AMCU) are continuing under the auspices of the Labour Court.



The producers and AMCU welcomed the initiative of the Labour Court to mediate a resolution of the protracted wage strike in the sector. The parties have fully embraced this process with talks led by Judge Hilary Rabkin Naicker. The process is unfolding and the parties are encouraged that they share a common commitment to endeavour to resolve this dispute.



-ENDS-

[witheco] 23/5/2014 09:49

Need to start mechanising these mines in the future, a union generally is more prosperous and effective when it takes small victories periodically. This, expectation to drive up salaries by a huge percentage, will mean the value added option to mechanisation of the mines is more credible and job losses will be inevitable. Ultimately the bill for this 4 month strike will be picked up by AMCU and its members.

[pixi] 22/5/2014 22:46

The strike is unlikely to last much longer, people need to eat.

[outfly] 21/5/2014 13:55

Nice to see it moving in the opposite direction today.

[ginty the brave] 21/5/2014 08:31

Hmm. Maybe. Sgill a great deal of risk here with potential violence.

[witheco] 21/5/2014 08:14

Hopefully see some turnaround today, at this price - good time to launch a derivative trade for a quick profit.

[witheco] 21/5/2014 08:12

JOHANNESBURG – The Association of Mineworkers and Construction Union (Amcu) and mining bosses have both welcomed the Labour Court's offer to mediate fresh talks between the parties.A formal agreement was reached this afternoon to reopen wage negotiations in a bid to end the crippling four-month long impasse on the platinum belt.The new talks are set to take place over the next three days behind closed doors.Both platinum producers and Amcu say they're positive this new intervention can bring an end to the strike.Around 70,000 members of the union have been on strike at Lonmin, Impala Platinum and Anglo American Platinum for 17 weeks, demanding a basic salary of R12,500 per month.

[outfly] 14/5/2014 13:07

If they do decide to close the mine, I could see this dropping considerably further. It does seem to be holding up better than what I thought today. Roll on the end of the strike then we should see this rise substantially.

[ginty the brave] 13/5/2014 21:09

Reckon there is going to be trouble ahead!!


RUSTENBURG - The Bapong community in the platinum belt is demanding that a local Lonmin mine be temporarily shut down until the nearly four-month-long mining strike is over.

Lonmin sits on tribal land belonging to the Bapo ba Mogale community and receives royalties from the mine.

Residents are terrified after a number of people, including two miners, were killed on their land over the weekend. Six others were also stabbed while a group of around 10 men had to run for their lives when they were approached by armed men on their way to work.

"We want our chief to come and talk to us. He must take the mining certificate from Lonmin so that the strike can end. We want this strike to end," said resident Margaret Lebesana.

"Last night we did not sleep, guarding each other as residents of this area. People are killing us like chickens on our land," she added.

Residents say although there is a police presence and mine security in the area, it is not sufficient. They say that security patrols at bus stops and main roads but attacks happen at their homes.

"We have had enough of the strike and what is happening in Bapong. Now people have died and I am asking that this can't happen to Bapong people," said Ivy Mokono, a resident.

The community says it will not go to work until the strike has been resolved. They want the mine shut down, saying they are not part of the strike but the bloodshed is continuing.

"We are sick and tired as the residents of Bapong. We are caught in a hard place. Lonmin is telling us to come back to work -- but on the other hand we are getting killed on our way to work. We want government to come and solve our problems," said Ofentse Madiba.

The community met with the tribal council on Tuesday to raise their concerns and demand that the council approaches Lonmin about temporarily shutting down.

"The option of temporary closure is a viable option in the sense that no one will sneak and go to job until one makeshift solution is in place," the council's Churchhill Madumo said.

He adds that security in the area is a concern and that police and mine security are working to protect the community.

"As far as safety is concerned we must consider state agents of safety and at the same time we must consider what Lonmin can do. That is why I say all issues raised here we must go to Lonmin now and raise them with Lonmin and give these people feedback as soon as today," he said.

Lonmin could not be reached for comment.

[witheco] 13/5/2014 19:50

Lets benchmark a uk miner, a start salaray would be of the order of £15000, with an experienced miner rising to £40-50,000, senior mining engineers can take home £70,000+.But the purchasing power is obviously a lot less. So, ask yourself, is the wage rise acceptable? And secondly, what role does the south african government play in this? I understand it was unfortunate for the deaths caused to the miners trying to return to work to support the families, but hopefully it may augment more responsibility for the government to take a more authoratative role in this dilemma. As they are also agents in this saga, taking royality fees on the minerals extracted.

[witheco] 13/5/2014 12:42

R12500 =£720 per month wages.Utilising the Big Mac Index, currency undervalued by around 50% to bring it into parity with comparitve wages in the UK of around £1080 per month. £12960 per annum.

[mj19] 18/4/2014 21:17

AFPStrike-hit South Africa platinum miners unveil new pay offerJohannesburg (AFP) - The world's three biggest platinum producers have made a new pay offer to end a strike which has crippled their South African operations for 12 weeks, a spokeswoman said on Friday.The new terms would raise the total pay and benefits for an underground miner at the Implats, Amplats and Lonmin companies by 7.5-10.0 percent a year on average.The total remuneration package would rise to 12,500 rand ($1,188, 860 euros) a month by July 2017, marking a significantly bigger increase than the rate of inflation.The radical trade union AMCU, which launched the strike on January 23, is demanding that basic pay should be 12,500 rand a month, excluding bonuses, but the employers say that this would amount to an average increase in total remuneration of 30.0 percent a year over four years.Negotiations between employers and unions are to resume on Tuesday."The offer was made by all three producers," Lonmin spokeswoman Charmane Russell told AFP.Anglo American Platinum (Amplats) and Impala Platinum (Implats) had made their offer late on Thursday, and Lonmin would make a statement at the opening of trading on the London Stock Exchange on Tuesday."Our statements clearly indicate that the revised offer to AMCU would provide for a minimum underground cash remuneration to 12,500 rand per month by July 2017," Russell said."This is not the same as basic wages. Cash remuneration includes allowances such as living out allowance, holiday leave allowance, etc. The cash remuneration does exclude medical and retirement benefits, and any bonuses."

[ginty the brave] 10/4/2014 10:09

Amid worker exodus to other unions.


JOHANNESBURG - Reports of workers in South Africa's Rustenburg platinum belt leaving the Association of Mineworkers and Construction Union (AMCU) for other labour movements in a desperate attempt to return to work is an indication the AMCU is on its way to collapse.

This is the view of Michael Bagraim, a labour expert and analyst who has been following the industrial chaos in Rustenburg closely as the platinum strike in South Africa fast approaches its 12th week.

Speaking with Mineweb, Bagraim said the AMCU - which is a relatively young union and a hold-out over wages in labour negotiations with South Africa's platinum miners - is in way over its head and the cracks are starting to show.

In recent weeks an upstart union, the Workers Association Union, formed and it recently claimed in theBusiness Report that more than 7,000 workers joined it from the AMCU.

Also, last week Bloomberg said the National Union of Metalworkers South Africa (NUMSA) was accepting miners who had turned to it after the worst strike to ever hit South Africa left many AMCU members destitute and hungry in Rustenburg.

Bagraim suggested various marches organized by the AMCU against the big three platinum producers in South Africa, and planned protests at the British Embassy in Pretoria and Parliament in Cape Town, are for naught.

"These are desperate measures and they will not make a difference. It is a waste of time given that the other planned marches are not even legal yet," he said.

According to Bagraim, one of the main failures of AMCU is that it has provided limited feedback to its members who want them to engage with management on the negotiation table instead of going on marches, delivering known memorandums.

"AMCU grew too big, too quickly, and they have been unable to service workers grievances effectively and they are losing members fast," he said.

In addition, the planned march to parliament would be tricky as AMCU did not have members in this region, suggesting it may be a futile effort.

Bagraim is of the view that AMCU will not last for another six months, with financial reality the catalyst of the union's destruction.

"When they grew their membership, they got money from their members in a short space of time and they are not using that money to service the workers," he said. "And people are voting with their feet by moving to other unions. They will not be able to sustain themselves in the long run."

He also pointed out that a trade union is a business which should be grown incrementally, setting up infrastructure and administrative processes along the way.

"It is a complicated administrative business and people pay for services and protection. The National Union of Mineworkers may have lost the plot by not providing leadership, but at least they have the infrastructure and administrative capacity to run a solid trade union," he said.

He described the situation as a fight for market share and as every member left, AMCU lost a piece of the pie, which may result in further violence before it collapses.

"AMCU did not realise that they cannot change the system over night and they must learn that they need to crawl first," he said. "This is a very important lesson for them and the Minister of Labour needs to step in."

The Labour ministry told Mineweb recently that they would not be getting involved in the dispute as it was up to the parties to resolve it even in the face of the biggest labour relations disaster to ever hit South Africa.

The strike is costing the economy close to R17 billion in production and wages losses. The workers are demanding a R12,500 structural change in minimum wages while the companies are offering between 7% and 9%.

When pressed for comment, AMCU leader Joseph Mathunjwa said: "We are on strike so we do not know how many members are leaving."

[pugdog] 04/4/2014 16:59

Maybe Mick ( the miner ) who bought LMI for Extrata, a few years ago, will buy them again for his new mining company. Memory not to good, but I think he paid about £20 pounds.

[mj19] 31/3/2014 10:40

Cape Town - A complex agreement will be on the table when the Commission for Conciliation Mediation and Arbitration makes another attempt to resolve the two-month long platinum sector strike.

The deal involves housing provision, housing and other allowances, a possible one-off payment and the phased-in introduction of a new entry-level wage for underground workers.
CCMA commissioners met with the Association for Mining and Construction Union (Amcu) negotiators on Wednesday and will meet employer representatives on Monday.

These meetings should be followed by another roundtable discussion brokered by the CCMA and there seems a consensus that an agreement is in the offing.

This is understandable since the pressure for compromise is being felt by both sides.

Miners, unpaid for eight weeks, are becoming desperate, while Anglo Platinum [JSE:AMS], Impala Platinum [JSE:IMP] and Lonmin [JSE:LON] face the fact that their stockpiles are all but depleted.

Serious losses are on the cards for the three major producers unless work can get underway again within a week or two.

For many of the miners, the situation has been desperate almost from the first week of the strike.

They were indebted before the strike began and face even worse penury now. Which is why they have agreed to their iconic R12 500 a month entry level wage being phased in over years?

Significantly, the offer to phase in the entry-level wage was tabled by Amcu negotiators before receiving a mandate from their members.

However, once the offer had been tabled and was brought back to the union members, it was agreed.

[witheco] 24/3/2014 13:25

Gd price to enter, I took position this AM. Looking at the PMG commodity prices, think these will inflate, not as pessimistic about far east as other commentators.Certainly see value in it, and I would price it cheaply at around 300p. Below 270p is bargain, and cannot see 250p sub. Alot of fear around at moment which is keeping it depressed, but you never know if/when a deal can be made with the African labour unions to shake that fear off, then look upwards of 300p. Too much at stake on both sides to not be able to compromise.