[miningmx.com] – NORTHAM Platinum said it had lost 3,900 ounces of metal in concentrate, equal to R46.2m in revenue, since April 2 when rock drill operators (RDOs) at its Zondereinde mine in the Limpopo province refused to drill while underground.
Until metal is produced from Northam’s Booysendal project, which is due any day now, Zondereinde is Northam’s only operating unit, and source of cash flow.
The mine produced about 157,000 oz in PGMs in the six months ended December 31, a 6% year-on-year improvement.
“Zondereinde’s management team has constituted a consultative forum and is
engaging with employee representatives in an attempt to resume operations as soon as possible,” said Northam Platinum in an announcement today.
A company source said that RDOs were asking for an extra R1 per hole blasted which is equal to a 38% increase over the current arrangement. “We offered an substantial increase and I honestly believe it’s the best we can do,” the source said.
Frans Baleni, secretary-general of the National Union of Mineworkers (NUM) confirmed the dispute: “There is a dispute about either R1 per hole or a bonus linked to the hole,” he said in response to texted questions.
The situation at the mine is believed to be stable. It’s worth noting that Northam’s Zondereinde escaped the violent strikes that scourged South Africa’s platinum sector last year, partly because of its liberal union recognition arrangements.
However, it’s thought that some dynamics among the labour market have changed at Northam with the Associated Mineworkers & Construction Union (Amcu) having met with management a fortnight ago. “It was a very amicable meeting,” said a company source.
It’s unknown if the RDO strike at Northam is informed by Amcu activism with the end-game being an attempt to attract NUM members to itself. Amcu is now the dominant union at Impala Platinum’s Rustenburg section where a year ago, RDOs went on strike demanding higher wages.
Three fatalities, violence and widespread intimidation followed at Rustenburg in a discontent that mushroomed throughout the industry, reaching its nadir at Lonmin’s Marikana mine in August.
Shares in Northam fell 6.7%, further than its peer group with Anglo American Platinum and Implats down 3.17% and 3.1% respectively.
