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Web Exclusive: Implats' strike losses reach R302 million
20 000 workers on strike in the North-West and Limpopo
September 2, 2009
By Justin Brown
The strike by 20 000 workers at Impala Platinum’s entered its ninth day on Wednesday as platinum output losses rose to as much as 31 500 ounces of platinum worth R302 million.
The lost production is equal to 1.2 percent of the group’s revenue of R26.1 billion in the year to June.
Lesiba Seshoka, a National Union of Workers (NUM) spokesperson, said there had been no resolution of the wage dispute. “We will be meeting again tonight,” he added.
Workers at Implats’ Impala mine near Rustenburg as well as the Marula mine in Limpopo have downed tools.
The NUM is demanding a wage increase of 14 percent while Implats was offering an increase of 10 percent. The union is also seeking increases in housing and transport allowances.
The platinum group metal market was largely ignoring the strike at Implats and positive US auto sales, James Moore, a UK-based TheBullionDesk.com analysts, wrote in a note.
Platinum was last bid at $1 207 (R9 496) an ounce, down $16 an ounce, while palladium was bid at $282 an ounce down $1 an ounce.
“Despite the loss of platinum production from Implat’s strike, the steep decline in auto demand continues to paint a poor fundamental picture with the white metal threatening to break lower from its recent $1 218 an ounce to $1 275 an ounce range,” Moore added.
Bob Gilmour, an Implats spokesperson, was not available to comment on the strike.
Simon Hudson-Peacock, Cadiz African Harvest Asset Management analyst, said he was concerned about the length of the strike at Implats in light of the fact that the wage offer of 10 percent was above inflation.
“The strike may allude to deeper unhappiness among Implats’ workforce,” he added.
Implats shares on the JSE were last quoted down 0.2 percent at R179.86, which valued the group at R114 billion.
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