Bushveld Minerals Limited Update on Industrial Action (6021A)
September 12 2018 - 11:15AM
UK Regulatory
TIDMBMN
RNS Number : 6021A
Bushveld Minerals Limited
12 September 2018
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
12 September 2018
Bushveld Minerals Limited
("Bushveld Minerals" or the "Company")
Update on Industrial Action
Bushveld Minerals Limited (AIM: BMN), the AIM listed, integrated
primary vanadium producer, with ownership of high grade vanadium
assets, announces that the unprotected industrial action continues
and workers have not yet returned to work.
The Company advises that the illegal industrial action relates
to claims by the local leadership of the majority union at Vametco,
Association of Mineworkers and Constructions Union ("AMCU"), for a
payment of cash in respect of an Employee Share Options Scheme
("ESOPS"). The Company believes this claim has no basis. On 23 May
2018, the Company and workers, as represented by AMCU, signed an
agreement in terms of which an amount of R20,000 (pre-tax) was paid
to each bargaining employee, as compensation for historical
payments that could have been paid had an ESOPS structure been in
place. The agreement constituted a full and final settlement for
any historic ESOPS liabilities of the Company. Furthermore, at the
time of the illegal strike, the Company had commenced constructive
discussions, led by the national leadership of AMCU in respect of a
new ESOPS structure going forward.
The Company has taken all reasonable steps to urge workers to
stop the illegal strike and return to work. These steps
include:
-- Meeting with local and regional leadership of the union to
discuss the ongoing strike in an effort to resolve it.
-- Engaging directly with workers urging them to return to work
and explaining the consequences of continuing to participate in
illegal industrial action.
-- Issuing workers with appropriate ultimatums in line with the
labour laws of South Africa, while simultaneously urging dialogue
with the Company.
-- Applying for an interdict/injunction to declare the
industrial action illegal and order a stop to intimidation of
non-striking workers as well as to obstructing access to the mine
for other workers.
The Company advises that to date:
-- Its application to the labour court was granted with an order
(a) to all striking workers to return to work and (b) for all
harassments and obstruction of access to the mine and plant to
stop, failing which they would be held in contempt of court.
-- It remains committed to having an ESOPS structure for workers
and has commenced constructive negotiations with national
leadership of AMCU in this regard.
-- It has invited all workers upon return to work to meet with management.
-- It continues its open-door policy for engagements with
workers who comply with the court order and return to work.
The Company has previously communicated its interest in building
a sound partnership with its employees and outlined its commitment
to a broader partnership with employees characterised by a shared
success in the Company. This includes developing an appropriate
ESOPS structure for the workers going forward. This commitment
remains and guides the Company's approach as it engages with the
national leadership of AMCU with a view to resolving the dispute
imminently.
The Company will update the market as appropriate.
Fortune Mojapelo, CEO of Bushveld Minerals Limited,
commented:
"While the ESOPS issue is a historical issue that pre-dates
Bushveld Minerals' acquisition of Vametco, we are determined to
resolve it through negotiations in a manner that is both respectful
and mutually acceptable. We have communicated that a sound
relationship with all our stakeholders, not least our workers and
local communities, is an important part of our strategy and we
trust that our good faith will in time be lead to a fair and
permanent solution. Bushveld's Management is proactively dealing
with the matter and satisfied with the approach adopted to resolve
the situation without delay."
Enquiries: info@bushveldminerals.com
Bushveld Minerals +27 (0) 11 268 6555
Fortune Mojapelo, Chief Executive
Officer
Chika Edeh, Head of Investor
Relations
SP Angel Corporate Finance
LLP Nominated Adviser & Broker +44 (0) 20 3470 0470
Ewan Leggat
Richard Morrison
Alternative Resource Capital Joint Broker
Rob Collins +44 (0) 207 186 9001
Alex Wood +44 (0) 207 186 9004
Tavistock Financial PR
Charles Vivian / Gareth Tredway +44 (0) 207 920 3150
Lifa Communications Financial PR (South Africa)
Gabriella von Ille +27 (0) 711 121 907
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END
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