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Kumba talks to striking workers

Oct 08 2012 16:34 Sapa

Company Data

KUMBA IRON ORE LIMITED [JSE:KIO]

Last traded 294.22
Change 5.72
% Change 0.02
Cumulative volume 285308
Market cap 94.76bn

Last Updated: 12/09/2014 at 04:27. Prices are delayed by 15 minutes. Source: McGregor BFA

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Johannesburg - Negotiations with striking workers at Kumba Iron Ore [JSE:KIO] Sishen mine in the Northern Cape were continuing on Monday, the company said.

"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 until mid-October."

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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kumba iron ore  |  sishen mine  |  mining unrest
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