News
South Africa: Industrial action in mining sector ends, tensions remain
The dominant National Union of Mineworkers (NUM), which has delivered above-inflation wage hikes but contained militancy, has lost control over much of its rank and file, a source of concern to the ruling African National Congress (ANC) and corporate bosses alike.
Social Tensions
Anglo American, which this week raised cost estimates for its Minas-Rio project in Brazil and warned of lower profit from its South African iron ore unit Kumba, is scrutinizing Amplats in a review widely expected to lead to shaft closures and job cuts that could further stoke social tensions.
Much of the platinum sector is battling with low demand, though the price for the metal used for emissions-capping catalytic converters in cars has risen 13 percent this year mostly because of supply concerns stemming from the strikes in South Africa, home to 80 percent of known reserves.
Refiner Johnson Matthey Plc said on Tuesday global platinum supply will hit an 11-year low in 2012, largely because of the strikes’ impact on production, and said demand would outstrip available stocks.
A Reuters journalist said workers at Amplats’ Thembelani shaft had reported for work on Thursday morning.
“We are reporting to work as a sign of goodwill while the striking committee meet management to finalize the deal,” said Thebe Maswabi, a miner at the shaft.
