By Nicholas Bariyo
Special to DOW JONES NEWSWIRES
Workers and management at Lumwana copper mine in Zambia have
agreed a 10% pay rise following weeks of negotiations, a union
official said Wednesday, as labor groups push for higher wages in
Africa's largest copper-producing nation.
The deal marks another triumph for the country's mining unions,
which have been in wage talks with several copper companies since
late last year.
The company agreed to offer the miners a pay rise to help them
cope with the rising cost of living, Joseph Chewe, the general
secretary of the Mineworkers Union of Zambia told Dow Jones
Newswires. A company spokesman couldn't be reached immediately for
comment.
Zambian food prices have soared in recent weeks, sparking fears
they could trigger food riots. The price of corn, the staple food
for the country's 13 million people, has doubled in the past two
months and the government has since threatened to introduce price
controls. The inflation rate increased to 7.2% in December from
6.9% in November, propelled by higher food costs.
"We have managed to win a pay increment at Lumwana and our
members are very pleased" Mr. Chewe said.
The deal will affect Lumwana's 1,500 miners.Lumwana, a unit of
Canada-based Barrick Gold Corp. (ABX) becomes the third mining
company in the country in just over a month to offer a pay rise in
an attempt to avoid the sporadic mining strikes last year and in
late 2011, though not on the scale of the wildcat action that
paralyzed South Africa's sector.
Glencore International PLC (GLEN.LN) and China Nonferrous Metals
Co. (8306.HK) offered pay increments in December. Talks at Vedanta
Resources PLC (VED.LN), the largest employer in the country's
mining sector, are continuing.
In February 2012, Barrick awarded an 18% pay increase to workers
at Lumwana. Zambian miners unions negotiate annual labor deals.
Barrick acquired the mine in 2011 as part of its $7.5 billion
takeover of Equinox Minerals Ltd. Lumwana produced 159 million
pounds, or 72.1 metric tons, of copper in 2011 at total cash costs
of $2.24 a pound, according to company data. The mine is expected
to produce some 250 million pounds of copper in 2013.
Write to Nicholas Bariyo at nicholas.bariyo@dowjones.com.
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