23rd Jun 2014 14:03
LONDON (Alliance News) - Lonmin PLC Monday said that following the tentative agreement made last week with the Association of Mineworkers and Construction Union over platinum miners strikes in South Africa, further progress has been made towards a return to work.
The AMCU is currently planning a central mass meeting with striking workers at the Royal Bafokeng Stadium in Rustenburg on Monday, where its President, Jacob Mathunjwa, is expected to address his members.
Lonmin said that it expects to receive feedback from the AMCU after the meeting has completed, with a more detailed announcement being made after that.
The meeting follows an agreement in principle which was achieved between the major platinum miners in the country and the union 10 days ago.
On June 12, Lonmin PLC, along with Anglo American Platinum PLC, a subsidiary of Anglo American PLC, and Impala Platinum Holding Ltd, said that the two sides had reached "informal undertakings" in principle on a potential deal.
The strikes, which is now in its 23rd week, have cost mining companies over ZAR21.7 billion, according to the companies. Striking miners, meanwhile, are believed to have missed out on over ZAR9 billion in wages.
The companies have put several offers on the table, but the union has been holding out for a bigger wage increase.
However, last Wednesday, Lonmin said that it had "regrettably" received new demands from the AMCU that, if granted, would mean significant additional costs of over ZAR200 million for the company above the increased costs contained in an in principle deal the sides agreed.
Lonmin shares were up 2.3% to 254.1 pence putting it in the top five FTSE 250 risers, while Anglo American shares were up 0.9% to 1,469.5 pence putting it in the top ten FTSE 100 risers on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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