* Platinum firms plead poverty, cite low metal prices
* Unions seek wage hikes well above 6.1 pct inflation
* 2014 union strike hurt producers, led to job cuts
By Zandi Shabalala
JOHANNESBURG, July 8 (Reuters) - The world's top platinumminers face tough wage talks next week with South Africa'shardline unions, having seen their balance sheets battered andthe capacity for big pay hikes limited by low prices and theeffects of a five-month strike in 2014.
The Association of Mineworkers and Construction Union (AMCU)plans to demand rises of more than 50 percent, while a smallerunion demanded 20 percent.
The demands are well above inflation at 6.1 percent in a struggling economy, with the International Monetary Fundestimating GDP expansion this year at 0.1 percent, dented by lowcommodity prices and a severe drought.
Africa's most industrialised country has the biggest andmost lucrative platinum reserves but labour unrest andregulatory uncertainty have dampened investor appeal.
The strike in 2014, which was led by AMCU, hit AngloAmerican Platinum (Amplats), Impala Platinum (Implats) and Lonmin , forcing them to cut jobs,shed mines and in some cases make cash calls to investors.
On Thursday, AMCU, which represents the majority of workerson the platinum belt, stuck to its battle cry of demanding a"living wage" of 12,500 rand ($850) per month for thelowest-paid workers. That amounts to a 56 percent raise.
"The living wage addresses food inflation because it keepsrising. If we are stuck in that low wage then how are we goingto cope with these increases, which are beyond our control,"AMCU president Joseph Mathunjwa said ahead of talks on July 12.
The mining companies are pleading poverty. The 2014 strike,along with low prices, cost the industry 24 billion rand and ledto thousands of layoffs.
"We remain committed to negotiating in good faith whilstremaining aware of the economic realities" facing the industry,Lonmin spokeswoman Sue Vey said.
London-listed Lonmin was forced to raise cash from investorsat the end of last year, selling each share for just over apenny. Larger rival Implats also tapped shareholders for equityto develop shafts it deemed vital to its growth.
"We have ensured that shop stewards have been appropriatelytrained and have a good understanding of our business and thechallenging environment in which we operate," Implatsspokeswoman Alice Lourens said.
Amplats declined to comment.
Although platinum prices are up 22 percent this year,they are down 50 percent from 2008 peaks due to oversupply andmuted demand from top consumer China.
"The balance sheets of Lonmin and Implats won't be able tosustain another severe downturn," Sanlam Private Wealth miningequity analyst Shiraaz Abdullah said.
($1 = 14.7067 rand) (Editing by James Macharia and Dale Hudson)
