Tensions high as industry meets over Lonmin

[miningmx] — SOUTH AFRICA’S mining industry formally started with damage
control on Saturday following a week during which countless replays of police
officers shooting at mineworkers had the country making global news for all the
wrong reasons.

The heavyweights from the Chamber of Mines (CoM) and its members, organised
labour and the ministries of both mineral resources and labour met at the Sunnyside
Park Hotel in Johannesburg to talk about the way forward after the carnage at
Lonmin’s Marikana mine claimed the lives of at least 44 people.

The meeting didn’t only involve platinum players: the likes of Impala Platinum’s
Terence Goodlace and Lonmin CFO Simon Scott were joined by Graham Briggs and
Mark Cutifani, the CEOs of Harmony Gold and AngloGold Ashanti respectively,
together with the National Union of Mineworker’s (NUM’s) General-Secretary Frans
Baleni, Labour Minister Mildred Oliphant, Minister of Mineral Resources Susan
Shabangu, the whole management team of the CoM as well as senior officials from
the Department of Mineral Resources (DMR).

A formal account of the meeting, given in a press conference invite sent to media
half-way through the day’s events, made it sound relatively straightforward and
simple:

“Management of Lonmin, the Chamber of Mines and other mining executives gave
an account of what challenges they face relating to engaging with labour
organisations and employees generally,’ it read. “Both Ministers then met with
organised labour to get their account and what they perceive as the source of the
conflicts.’

One quickly got the sense that it was anything but a straightforward and conclusive
discussion when a short and not-too-friendly exchange between the Chamber of
Mines’ Vusi Mabena and a group of journalists – much larger than the usual
contingent that follows mining-related news – gathered outside the door of the hall
where the meeting was taking place. Mabena wanted the press to “move away as far
as possible’ since the delegates feared they were being overheard.

The Director-General of the Department of Mineral Resources, Thibedi Ramontja,
soon took over from Mabena and with excessive finger-pointing told some
photographers where to sod off (only to have the compliment rewarded with having
his picture taken).

The details of this little skirmish are relevant because some irritation was starting to
build up over the meeting running some two-and-a-half hours over time, partly
because the delegates couldn’t agree on the contents of a final press release – a
process that was eventually aborted with no initial statement issued.

That the points of consensus reached and decisions made couldn’t find their way into
a written statement say much about how many issues were left up in the air when
the delegates finally called it a day.

What followed when Shabangu finally took the microphone was the blandest of
disclosures on priorities listed and resolutions made. For one, while the meeting
centred a lot on Amcu – NUM’s rival union, which claims to represent most of the
victims in Thursday’s shooting – it was very much a case of talking about the union
rather than talking with them. Amcu’s absence – the union was not invited – was
justified on the basis of some formal bargaining procedures and statuses in terms of
the Labour Relations Act. Oliphant has however committed to prioritise “talks’ with
Amcu.

“As the DMR we only heard about Amcu, we’ve never engaged with them,’
Shabangu said. “This is about how we move forward, but there never was an
intention from us to marginalise them.’ Still, what was also said was that the rock
drill operators’ demand of a monthly salary of R12,500 would not be entertained as
such an arrangement does not form part of the existing wage agreement among
recognised unions and employers.

Asked why CEOs from sectors other than platinum attended, Shabangu said the
matters dealt with were industry issues that required an industry response. Baleni
cut more to the chase, saying there are signals of “hot spots’ developing in the gold
sector, not entering into more details.

As for Lonmin, trade unions NUM, Uasa and Solidarity committed to encourage their
workers to get back to work on Monday. Scott told Miningmx the ultimatum
issued on Thursday to workers to report for work the following day, was postponed
until Monday in the wake of the shooting incident. Monday’s deadline still remains in
force.

Among so many uncertainties one got the feeling this was the overriding priority
everyone ascribed to: wishing for the situation at Lonmin to return to normal as
quickly as possible to show South Africa remains open for business. Whether that will be possible without inviting Amcu to the table is highly unlikely.