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Implats to resume platinum production – for now
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mpala Platinum Holdings [JSE: IMP] is expected to start producing metal at its Rustenburg operation within the next week. This will be the first time that the mine resumes production since Implats
workers downed tools in an illegal strike six weeks ago.
The strike, which resulted in the dismissal of around 17,200 workers, led to violent protests, scores of injuries and at least four reported deaths. Workers starting striking on January 12 when rock drill operators downed tools over unhappiness that they had not received a retention bonus, while miners had. They refused to involve the NUM in addressing their issues, opting instead to turn to a new upstart union, the Association of Mineworkers and Construction Union (AMCU). Mr Johan Theron, Implat's chief human resources executive stated in media reports at the end of February that while the strike was not yet over, enough of the 17,200 dismissed workers had reapplied for their jobs.
He said that together with the non striking workers, the company now had more than 50% of its normal workforce, which was sufficient to resume production.
Theron's statement followed an earlier call by the National Union of Mineworkers (NUM) urging its members to accept Implat's offer to rehire miners at its Rustenburg operation. Meanwhile media reports have noted that the disruption at Implats' Rustenburg operation has already cost the company at least R1.5billion or 90,000 ounces in lost output. It is a key reason behind a 23% spike in the spot price of the white metal in the year to date. As the world's single largest platinum mine, Implats' Rustenburg operation accounts for roughly 60% of Implats' output and 15% of global platinum output when all systems are operational. While the latest move will help to restore some normality, all indications are that this is unlikely to be the last labour disruption at Implats or other platinum mines in the area, who are already preparing themselves should the unrest spread to their operations.
Beatthemarket.co.za | March 2012
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