More talks expected to end S.Africa’s platinum strike

June 17, 2014 11:45 am
Miners march on South African government buildings in Pretoria/AFP
Miners march on South African government buildings in Pretoria/AFP

, JOHANNESBURG, June 17- The South African trade union behind a five-month platinum strike has responded to an offer aimed at ending the stoppage, but more talks are needed before a deal is finalised, producers said Tuesday.

The Association of Mineworkers and Construction Union (AMCU) submitted a written response to the mining firms’ offer late Monday night.

The world’s largest platinum producers Impala Platinum (Implats), Anglo American Platinum and Lonmin last week announced they had reached a preliminary deal with the AMCU.

But more discussions on a final agreement to end the strike, which has pushed the South African economy into contraction, are expected this week.

The mining companies “expect to meet with them (AMCU) soon to discuss and resolve (a) final deal,” said Implats spokesman Johan Theron.

“But clearly (there is) still some work to be done before we can claim a final agreement,” he added.

A spokeswoman for the three mining firms, Charmane Russell, said further discussions were likely to take place “in the day or two ahead.”

AMCU president Joseph Mathunjwa confirmed that the union had submitted its response, but did not provide any details.

Mining Minister Ngoako Ramatlhodi, who intervened in the latest round of talks, was upbeat Tuesday that a deal was on the horizon.

“Parties as we speak have got an in-principle agreement signed. The devil of course will still be in the final details,” Ramatlhodi told Talk Radio 702 on Tuesday.

The minister last week warned that if the strike dragged on the mines could close, throwing thousands of people out of work and cutting off a vital export.

The strike began on January 23, when more than 70,000 workers downed tools to demand higher wages and benefits.

The offer by mining companies would by 2017 nearly double the current wage, raising it from 5,500 rand per month to 10,500 rand ($980, 720 euros), but it falls short of the 12,500 rands the miners were seeking.

South Africa holds around 80 percent of the world’s known platinum reserves, but stockpiles have so far kept the markets supplied with the metal key for producing catalytic converters used to reduce auto pollution.


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