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Make-or-break mine talks set to start

Johannesburg - The Association of Mineworkers and Construction Union (Amcu) and major platinum producers were due to meet on Monday for more talks aimed at ending a crippling five-month strike, with the government threatening to pull out of mediation if a deal is not agreed.

Mining ministry spokesperson Mahlodi Muofhe said he believed Amcu and the world's top three platinum firms would agree a deal on Monday.

"We believe that the parties themselves are at a point where they feel that they have to get to some kind of resolution," Muofhe told the SABC.

Labour and mining firms will have to reach a final agreement on Monday to end the prolonged platinum wage dispute.

Mining Minister Ngoako Ramatlhodi threatened on Saturday to pull out of mediation if the two sides could not reach a deal, saying the government could "take them to the river but not make them drink".

Amcu downed tools at Anglo American Platinum [JSE:AMS], Impala Platinum [JSE:IMP] and Lonmin [JSE:LON] in January demanding that their basic wages be more than doubled to R12 500 a month.

The union has so far rejected offers from the companies and those proposed by a government mediating team, dashing hopes of an immediate end to a strike that has halted mines that normally account for 40% of global platinum output.

The mineral resources department has been negotiating with the Association of Mineworkers and Construction Union (Amcu) and Lonmi, Impala Platinum and Anglo Platinum.

Ramatlhodi set up an inter-governmental technical team to help end the crippling five-month strike.

On Friday he said that negotiations had entered a sensitive stage, but on Saturday he threatened to ditch the process if an agreement was not reached.

"I am pulling out on Monday if they do not find each other," said Ramatlhodi, according to Sapa.

"If they do not find each other I wish them and South Africa luck."

The strike, which is already dragging the economy down, has been tainted by deaths and is also impacting on the livelihoods of communities in the platinum belt.

It has also hit wider economic output in Africa's most advanced economy, pushing it into contraction in the first quarter of this year.

On Sunday, ANC secretary general Gwede Mantashe said there is concern over alleged involvement by the Economic Freedom Fighters and white foreign nationals in the platinum strike.

He said the ministry of mineral resources has been cautioned to handle the facilitation with care.

 - Fin24 with agencies



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