Platinum miners’ strike in SA biggest since aparthied end in 1994
20 March 2014 4:11 AM IST
Revenue and production losses look sure to top those experienced in 2012, when a wave of rolling, wildcat strikes pushed Anglo American Platinum into the red and forced Lonmin into a rights issue to shore up its finances. Shareholders are concerned at the prospect of steeper losses this time with almost half of mine shafts already unprofitable.
Entering its eighth week, the wage strike by the Association of Mineworkers and Construction Union (AMCU) against the world’s top three platinum producers - Amplats, Lonmin and Impala Platinum - is likely to drag on for several more weeks, with both sides poles apart and neither blinking.
As costs mount, the sheer scale of the strike is also an unwelcome development for President Jacob Zuma and the ruling African National Congress, with a general election on 7 May. The current strike has so far taken around 440,000 ounces of platinum out of production, as 44 working days have been lost and the daily losses are almost 10,000 ounces.
Amplats, Implats and Lonmin collectively lost around 544,000 ounces to the wildcat strikes in 2012, according to estimates and data provided on Monday by the companies. But there was no single stoppage in 2012, the big three platinum producers were hit at different times, in periodic eruptions, and the current strike will pass the 544,000 ounce mark if it continues another 11 working days. The companies have lost over 8.8 billion rand ($820 million) in revenue so far to the strike, according to a website provided by South Africa’s Chamber of Mines which constantly tallies the losses.
In 2012, according to the data on Monday, their revenue losses reached around 10.5 billion rand. So at the current rate of losses, around 200 million rand per working day, the strike will top 2012 for lost revenue in nine working days, a fact certain to cause boardroom alarm. The social and political consequences are also mounting. Employees’ lost earnings according to the industry stand at almost 4 billion rand ($372 million) and counting.
Entering its eighth week, the wage strike by the Association of Mineworkers and Construction Union (AMCU) against the world’s top three platinum producers - Amplats, Lonmin and Impala Platinum - is likely to drag on for several more weeks, with both sides poles apart and neither blinking.
As costs mount, the sheer scale of the strike is also an unwelcome development for President Jacob Zuma and the ruling African National Congress, with a general election on 7 May. The current strike has so far taken around 440,000 ounces of platinum out of production, as 44 working days have been lost and the daily losses are almost 10,000 ounces.
Amplats, Implats and Lonmin collectively lost around 544,000 ounces to the wildcat strikes in 2012, according to estimates and data provided on Monday by the companies. But there was no single stoppage in 2012, the big three platinum producers were hit at different times, in periodic eruptions, and the current strike will pass the 544,000 ounce mark if it continues another 11 working days. The companies have lost over 8.8 billion rand ($820 million) in revenue so far to the strike, according to a website provided by South Africa’s Chamber of Mines which constantly tallies the losses.
In 2012, according to the data on Monday, their revenue losses reached around 10.5 billion rand. So at the current rate of losses, around 200 million rand per working day, the strike will top 2012 for lost revenue in nine working days, a fact certain to cause boardroom alarm. The social and political consequences are also mounting. Employees’ lost earnings according to the industry stand at almost 4 billion rand ($372 million) and counting.
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