18th Jun 2014 14:17
LONDON (Alliance News) - Platinum miner Lonmin PLC said Wednesday that it has "regrettably" received new demands from the striking Association of Mineworkers and Construction Union in South Africa 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 last week.
Lonmin, along with Impala Platinum Holdings Ltd and Anglo American Platinum Ltd, a subsidiary of Anglo American PLC, have been meeting with representatives of the union in an attempt to end the strikes which are currently crippling the platinum mining industry in the country and hurting South Africa's entire economic performance.
The strike over wages and working conditions, now in a twenty-second week, has cost mining companies over ZAR21.7 billion, according to the companies, and striking miners are believes to have missed out on over ZAR9 billion in wages.
Last Thursday the companies reached a tentative deal to resolve the strikes, although financial details were not disclosed.
Lonmin Wednesday said that it has received a letter from AMCU president Joseph Mathunjwa, confirming that the AMCU had received a mandate from its members to finalise agreements to end the strike. The letter raised various procedural issues, such as the time frame of proposed agreement and logistics around a return to work which the companies said it was is willing to finalise with union leadership.
However, the new and additional demands, if granted, would means costs "well beyond" the increases already agreed in the deal last week.
Lonmin said that its goal remains a reaching a sustainable agreement on the basis of the agreement reached last Thursday, and it said it was working with AMCU to achieve a return to work in line with that agreement.
Shares in Lonmin were trading down 0.2% at 247.20 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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