Johannesburg - Negotiations with striking workers at Kumba Iron Ore [JSE:KIO]
Sishen mine in the Northern Cape were continuing on Monday, the company
"The company's engagement with the strikers is focused
on encouraging them to leave the mine property, securing all mining
equipment, and to resume safe mining operations as soon as possible,"
said spokesperson Gert Schoeman.
The workers went on strike on October 3, demanding a monthly salary of R15 000 for all Kumba workers.
Schoeman said production was suspended on October 4
when the strikers blocked access to the pit, creating an unsafe
environment for mining operations.
"The company is losing approximately 120 000 tons per day of finished product due to the illegal strike," he said.
"However, Kumba currently estimates that it will have
sufficient production from its other mines and stockpiles of finished
product at Sishen Mine and Saldanha to continue supplying its customers
Schoeman said loading operations at Sishen Mine had
also been affected by the illegal strike and not all load-out stations
were operating at full capacity.
"Kumba concluded a two-year wage agreement with
organised labour two months ago that makes provision for an increase of
between nine percent and 12 percent [total cost to company], which was
well above the rate of inflation."
He said permanent staff below management level also
benefit from Envision, an employee share scheme, that paid out R2.7bn to 6209 members at its first maturity date in December 2011.
Each scheme member employed by Kumba since its market
listing in 2006 received a pre-tax cash payout of approximately R570 000
at the time, he said.
"Envision scheme members also receive dividends twice a year which amounted to R33 675 [pre-tax] per member in August 2012."
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