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A day after Lonmin workers went back to resume working the mines at Rustenburg, miners at one of the mines of the world’s third largest gold producer failed to report last night and instead held a strike, confirming fears the labour unrest in South Africa is spreading across the mining industry.
“An unprotected strike at AngloGold Ashanti’s Kopanang operations prevented the night shift from taking place on September 20, 2012,” the multi-listedAngloGold Ashanti (LSE:AGD) said in a statement today, released at 10:30 AM GMT.
Earlier today, Reuters news agency reported the morning shifters also did not go down to the deep-level mine, according to AngloGold Ashanti’s spokesperson, Alan Fine.
Mr. Fine, however, stated the strikers have yet to air their demands formally to the company, although a spokesperson for the National Union of Mineworkers (NUM) said the workers are asking the same 12,500 South African Rands monthly wage Lonmin strikers voiced back in August that triggered the industrial action and resulted in losses of lives and multi-million pounds worth of revenue.
Domino Effect
AngloGold Ashanti is a new addition to a growing list of mining companies in resource-rich South Africa that are making losses due to work stoppage triggered by demands of wage increases.
The world’s top three platinum producers that all operate mines near Rustenburg, north of the capital have all received demands from their workers of salary increases, with Lonmin’s rock drill operators – 3,000 of them instigated the strike – getting a 22% increase from their current pay to the tune of R11,000.
Calls from NUM members in coal, platinum, and gold businesses have been received by the country’s largest union asking for similar increases in their wages, according to its General Secretary, Frans Baleni.
The R12,500 wage seems to be the minimum salary workers in South Africa’s mining sector are asking. Lonmin demanded that much, and so did employees of Royal Bafokeng Platinum and Gold Fields Limited .
Impala Platinum Holdings (LSE:IPLA), world’s second largest producer of platinum, is currently in talks with representiatives of their workers, who demanded a total of 20% rise in salary within a six-month period.
Safety First
Lonmin’s violent strike ended with 46 people killed since it started on 10th August, and intimidation and threats days prior to the signed agreement last Tuesday have resulted in mining operations getting cancelled to protect the employees of the companies.
AngloGold Ashanti, mindful of the events that have been unfolding for the past weeks, has also assured all stakeholders of the firm’s commitment to resolve the issue swiftly.
“Management’s priority is to maintain safety, peace and stability at the site and to continue a constructive dialogue with all employees, their representatives and other stakeholders,” it said.
The disrupted Kopanang mine contributed 90,000 ounces of gold, or about 4% of all gold production of the company for the first six months of the firm’s financial year.
Company Spotlight
AngloGold Ashanti Limited is a global gold mining company with 20 operations in four continents. Shares of the company are listed on the Johannesburg Stock Exchange, its primary listing, and on the London, New York, Ghana, and Australian Stock Exchanges under the symbols “ANG”, “AGD”, ”AU”, “AGA” and “AAD”, and “AGG”, respectively.
