By Alex MacDonald
LONDON--Anglo American Platinum Ltd. (AMS.JO) said Friday it
will dismiss 12,000 workers at its Rustenburg mine as illegal
strikes that have already cost the company 700 million rand ($82.6
million) in lost revenue spread to three more operations.
The world's largest platinum producer accounting for some 40% of
the world's output now has six mines out of operation and a smelter
offline after an insufficient number of workers failed to show up
to work due to illegal strikes. The strikes, which began three
weeks ago, have now cost the company about 39,000 ounces in lost
platinum.
The illegal strikes began to flare in August when clashes
between police and workers resulted in 46 deaths at platinum
producer Lonmin PLC's (LMI.LN) largest mine. The strikes have since
spread to the other mines in the gold, coal, and iron ore sectors
as well as the transportation sector. Oil major Royal Dutch Shell
PLC (RDSB) Friday declared a "force majeure" on some fuel
deliveries in response to strikes by 20,000 truck drivers.
The strikes, which have been exacerbated by feuding between two
mining unions, have centered on calls for higher wages and better
living conditions.
Anglo Platinum, which is majority owned by Anglo American PLC
(AAL.LN), said less than 20% of its employees in the Rustenburg
region have shown up to work, rendering four mines inoperable.
The company held disciplinary hearings over the illegal strikes
and decided to dismiss about 12,000 striking employees, about a
fifth of Anglo Platinum's total workforce, after they failed to
attend disciplinary hearings. The workers will have three working
days to appeal the hearing.
The strike has also spread to the company's Union and
Amandelbult mines where workers presented similar demands to those
received in Rustenburg, the company said. The illegal strikes have
led to the shut down of both those mines and the Mortimer
smelter.
Chris Griffith, chief executive of Anglo Platinum said: "The
company is committed to participating in the Platinum centralized
engagement structures driven by the Chamber of Mines, as well as
exploring the possibility of bringing forward wage negotiations
within our current agreements."
Kumba Iron Ore Ltd. (KIO.JO), Anglo American's South African
iron ore division, also had to suspend operations at its Sishen
Mine, South Africa's largest iron ore mine, on Thursday after 300
non-unionized workers went on strike over wages.
Kumba said it won't engage the protesters in wage talks after
having signed a two-year wage agreement two months ago.
South Africa's Labor Minister, Mildred Oliphant, said earlier
Friday that she is particularly worried about the Kumba strike
because the workers' demands don't make sense and are taking place
outside union control.
Devon Maylie in Johannesburg contributed to this article
Write to Alex MacDonald at alex.macdonald@dowjones.com
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