Less Ads, More Data, More Tools Register for FREE

Pin to quick picksLonmin Share News (LMI)

  • There is currently no data for LMI

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE 2-South Africa's AMCU union reaches tentative wage deals with platinum trio

Fri, 21st Oct 2016 14:02

* AMCU says deals still need final members' approval

* Terms of the deals not disclosed

* AMCU lead 5-month platinum strike in 2014 (Recasts with AMCU president comments)

By Ed Stoddard

JOHANNESBURG, Oct 21 (Reuters) - South Africa's AMCU unionhas reached wage deals in principle with platinum producersAnglo American Platinum, Impala Platinum andLonmin, subject to final approval from its members, theunion's president said on Friday.

This means a strike has almost certainly been averted inSouth Africa's platinum sector, which is still recovering from acrippling five-month stoppage led by the Association ofMineworkers and Construction Union (AMCU) in 2014.

"What our members have been demanding has been secured fromthe companies," AMCU President Joseph Mathunjwa told Reuters,without elaborating.

Asked if AMCU had an agreement in principle with the threeproducers, Mathunjwa responded: "Yes, subject to a mass meetingof general members to confirm it again."

He said the meeting would be held on Oct. 30 and AMCU woulddisclose more details at a press briefing next week.

Known for its militancy and strident tone, AMCU had publiclysought wage increases of about 50 percent compared with offersin the single digits from the employers. It is not clear if AMCUwatered down its demands to reach agreements.

Earlier AMCU said in a statement that it had received its"members' mandate", which is union speak for their agreement, onwages at the trio of companies while Lonmin confirmed it had reached an agreement "in principle" with the union.

However, Amplats said on Friday that "wage negotiations areprogressing well" and it could "comment further in due course".

Sibanye Gold will be relieved at a wage deal as itis set to take over Amplats' labour-intensive Rustenburgoperations, which is where the company's AMCU membership isconcentrated.

AMCU dislodged the once dominant National Union ofMineworkers (NUM) on South Africa's platinum belt in a turf warthat triggered violence in which dozens were killed. It is alsotrying to grow its membership in the gold sector.

Heading off a strike is rare good news in the mining sectorin South Africa, where investors have been rattled by labourunrest, policy uncertainty and generally depressed prices.

Platinum prices rallied in the third quarter of this yearbut have since cooled and spot platinum is now only about 4.5percent higher so far this year and below $930 an ounce.

Many shafts in South Africa remain loss-making at suchlevels and companies have said they cannot afford big pay hikes.

But a drought has fuelled food price inflation, which wasrunning at 11.3 percent in September, and this in turn impactswage demands as the average South African miner typically hasseveral dependants he or she needs to feed. (Reporting by Tanisha Heiberg and Nqobile Dludla inJohannesburg and Zandi Shabalala in Istanbul; Editing by SusanThomas)

More News
16 Sep 2015 12:06

Lonmin upgraded by UBS following huge share price slump

(ShareCast News) - UBS upgraded Lonmin to 'neutral' from 'sell', saying the risk/reward is now balanced, with the shares down 84% in the past three months. However, UBS, which cut its price target on the stock to 25p from 45p, said the outlook is still very uncertain. It sees material upside from m

Read more
16 Sep 2015 08:39

BROKER RATINGS SUMMARY: Exane BNP In Double Upgrade Of Reckitt

Read more
16 Sep 2015 07:21

BUZZ-Lonmin: UBS raises to "neutral" after share slump

** Platinum miner's shares up as much as 4.8 pct before paring gains after UBS raises rating on co to "neutral" from "sell", cuts PT to 25p from 45p ** Risk/reward is now balanced on shares, analysts say; shares have fallen 87 pct YTD with Tuesday's 22.9p close marginally above co's 20.58p

Read more
15 Sep 2015 16:22

FTSE 250 movers: Oil services stocks gush, Stagecoach hit by living wage warning

(ShareCast News) - After hitting a six-day low in early trade, the FTSE 250 index closed the session in positive territory on the back of mining and oil & gas sector gains. Vicissitudinous platinum miner Lonmin topped the mid-cap index for the second day as platinum, which is closely linked to the c

Read more
14 Sep 2015 17:05

FTSE 250 movers: Miners and automotive links hit mid-caps

(ShareCast News) - Like its larger benchmark counterpart, the FTSE 250 index pared early gains to finish Monday's session in negative territory. By the close, the second-line index was down 0.25% to 16,925.69 points. Platinum miner Lonmin, one of the index's most volatile stocks, was down by more t

Read more
11 Sep 2015 13:18

S.Africa's Amplats sheds troubled mines to focus on mechanisation

* Amplats aims to be low cost miner of precious metal * New strategy to run shallow mechanised mines * Platinum's spot price near 6-1/2-year lows * Sibanye's Froneman to slash costs, transform mine By Zandi Shabalala JOHANNESBURG, Sept 11 (Reuters) - Anglo American P

Read more
9 Sep 2015 18:09

Malema ejected from South Africa's parliament for calling deputy president "murderer"

CAPE TOWN, Sept 9 (Reuters) - Julius Malema, leader of the leftist Economic Freedom Fighters (EFF) party, was thrown out of the South African parliament on Wednesday after he called Deputy President Cyril Ramaphosa a "murderer". Malema, clad in his party's trade-mark red overalls, was eject

Read more
7 Sep 2015 16:04

LONDON MARKET CLOSE: Glencore Shines On Debt Reduction Plans

Read more
4 Sep 2015 16:12

FTSE 250 movers: Booker gains on JPM note, commodity stocks slide

(ShareCast News) - London's mid-cap index was down 1.4% to 16,834.66 at 1611 BST, with commodity stocks pacing the decline as a disappointing nonfarm payrolls report exacerbated worries about a global economic slowdown. Booker was on the front foot as JPMorgan Cazenove raised its price target on the

Read more
4 Sep 2015 14:18

South Africa's mining jobs pact seen as too little too late

* Mining sector jobs pact seen as toothless * S.Africa faces 25 percent unemployment rate * Falling metal prices, rising costs hobble mines By Zandi Shabalala JOHANNESBURG, Sept 4 (Reuters) - A plan by the South African government and mining companies to stem the wave of j

Read more
3 Sep 2015 14:16

UPDATE 2-S.Africa's Implats plans $300 mln share sale, cuts capex

* Impala seeks cash from investors to fund projects * Shares punished by the market, down as much as 15 pct * Company sees savings of 1.3 bln rand in 2016 (Adds cash position) By Zandi Shabalala JOHANNESBURG, Sept 3 (Reuters) - Impala Platinum plans to raise 4 billion r

Read more
3 Sep 2015 10:31

TOP NEWS SUMMARY: UK Service Sector Growth Weakest Since 2013

Read more
3 Sep 2015 07:14

LONDON BRIEFING: easyJet Leads Positive Open After Strong Summer

Read more
3 Sep 2015 06:36

LONDON MARKET PRE-OPEN: Futures Point Up With China Closed For Holiday

Read more
2 Sep 2015 17:09

UPDATE 1-Berkeley promoted to FTSE 100 index, replaces Weir Group

* Berkeley joins FTSE 100, Weir Group out in quarterly reshuffle * Sophos, Circassia, P2P Global added in FTSE 250 index * Lonmin, James Fisher, Premier Farnell leave mid-cap index By Atul Prakash LONDON, Sept 2 (Reuters) - London-focused housebuilder Berkeley Group has pu

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.