South Africa - Gold strike set to start on Sunday

[Paciente]

Gold strike set to start on Sunday


Tue, 02 Aug 2005


The gold mining sector faces its first sector wide strike in 18 years from Sunday after the National Union of Mineworkers on Tuesday received a strike notice from the Commission for Conciliation Mediation and Arbitration (CCMA).

The Num will then issue the Chamber of Mines with a 48-hour strike notice, with the strike set to start from the night shift on Sunday.


Three-week strike in 1987

The last time that South Africa's gold mines had a sector wide strike was in 1987 when workers staged a three-week strike.

The chamber is offering a 4.5 percent increase, with the lowest paid workers getting 4.5 percent, and the three trade unions are demanding a wage increase of 12 percent.

"It is very disappointing that we have reached a deadlock in the wage talks, but we will continue to seek a settlement," Chamber of Mines negotiator Dr Frans Barkers said.

The chamber is representing AngloGold Ashanti, Gold Fields and Harmony Gold and the South Deep joint venture, which is a 50:50 joint venture between Western Areas and Canadian gold miner Placer Dome.

The gold mining sector employs about 130 000 people, with about 70 percent to 80 percent belonging to the sector's three trade unions, which are the Num, Solidarity and the United Association of South Africa (Uasa).


Losses of around R150m a day

If the strike does proceed, then the sector would lose about R150-million per day in export revenue, Barker said.

Harmony is likely to lose an estimated 12 000 troy ounces of gold production from its South African gold mining operations, if the strike goes ahead.

Relative to CPIX, which rose 3.5 percent year-on-year to June, the offer from the gold employers of 4.5 percent was high, while the unions' demand for a 12 percent increased remained "very substantial", Harmony spokesperson Brenton Saunders said.

An AngloGold Ashanti spokesperson didn't want to comment on the matter and Gold Fields spokesperson Willie Jacobsz wasn't available to comment.


Impact on gold production

In the June quarter, AngloGold Ashanti produced 662 000 oz from its five major gold mines as well as from the Savuka mine and the Vaal River surface operations.

AngloGold Ashanti will lose an estimated 240 kilograms of gold output per day from its South African mines, if the strike goes ahead.

Gold Fields produced 711 400 oz of gold at its Driefontein, Kloof and Beatrix mines in South Africa during the March quarter.

Trade union Solidarity has received a strike certificate from the CCMA for the gold mining sector and is obtaining a mandate from its members for a strike, Solidarity spokesperson Reint Dykema said.

Uasa is balloting its members regarding a strike in the gold mining sector, Uasa representative Tim Kruger said.

Uasa represents about 16 000 mining officials and artisans in the gold mining industry.

The balloting is likely to be complete by Friday, Kruger added.

"The chances are very good that there will be a strike," he said.