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Johannesburg - Striking South African coal and gold miners will meet the Chamber of Mines in separate talks on Monday in a bid to end stoppages that have cost the economy tens of millions in lost output.
Coal output has been halted for a week, while some 100 000 gold miners downed tools on Thursday, bringing production to a halt at AngloGold Ashanti [JSE:ANG], Gold Fields [JSE:GFI] and Harmony Gold Mining Company [JSE:HAR] at a time when the bullion price is at record highs.
The annual “strike season” is in full swing, with unions demanding 10% - 15% pay rises, well above inflation of 5%. The strikes have so far hit chemical manufacturers, diamond miners and the oil sector.
Negotiators have narrowed the gap on the gold front, raising hopes of more progress on Monday, though neither side is predicting a breakthrough. The Chamber of Mines negotiates on behalf of the gold and coal producers.
“They have put something on the table and we are looking at that and consulting with our members and will come back on Monday to see if there can be some improvements in their offer,” Frans Baleni, General Secretary of the National Union of Mineworkers (Num) told Reuters.
The Num had sought a 14% pay rise and the gold mine companies had offered rises of 7% to 9%.
Investors hammered South African mining shares for most of last week on concern about the impact of lost production, despite record high gold prices, and global fund trackers said redemptions from African regional funds had hit a 23-week high.
Markets on Monday will also be watching a fresh round of wage talks between unions and Impala Platinum Holdings [JSE:IMP], the world’s second largest producer of the precious metal.
Impala and its larger rival Anglo Platinum [JSE:AMS], which is also engaged in negotiations, together account for around two-thirds of global platinum output, so strikes against them will almost certainly support its price.
Gold’s rise to record prices has been led mainly by its safe haven status at a time of debt crises in America and Europe, but analysts have said the South African strikes could also help prop up its price if they are prolonged.
Coal output has been halted for a week, while some 100 000 gold miners downed tools on Thursday, bringing production to a halt at AngloGold Ashanti [JSE:ANG], Gold Fields [JSE:GFI] and Harmony Gold Mining Company [JSE:HAR] at a time when the bullion price is at record highs.
The annual “strike season” is in full swing, with unions demanding 10% - 15% pay rises, well above inflation of 5%. The strikes have so far hit chemical manufacturers, diamond miners and the oil sector.
Negotiators have narrowed the gap on the gold front, raising hopes of more progress on Monday, though neither side is predicting a breakthrough. The Chamber of Mines negotiates on behalf of the gold and coal producers.
“They have put something on the table and we are looking at that and consulting with our members and will come back on Monday to see if there can be some improvements in their offer,” Frans Baleni, General Secretary of the National Union of Mineworkers (Num) told Reuters.
The Num had sought a 14% pay rise and the gold mine companies had offered rises of 7% to 9%.
Investors hammered South African mining shares for most of last week on concern about the impact of lost production, despite record high gold prices, and global fund trackers said redemptions from African regional funds had hit a 23-week high.
Markets on Monday will also be watching a fresh round of wage talks between unions and Impala Platinum Holdings [JSE:IMP], the world’s second largest producer of the precious metal.
Impala and its larger rival Anglo Platinum [JSE:AMS], which is also engaged in negotiations, together account for around two-thirds of global platinum output, so strikes against them will almost certainly support its price.
Gold’s rise to record prices has been led mainly by its safe haven status at a time of debt crises in America and Europe, but analysts have said the South African strikes could also help prop up its price if they are prolonged.
