By Devon Maylie and Clare Connaghan
JOHANNESBURG--Industrial action that has severely disrupted
South Africa's mining industry spread briefly to the world's
largest platinum producer Friday morning, after 100 employees at
Anglo American Platinum Ltd.'s (AMS.JO) Thembelani mine refused to
go underground.
Anglo American Platinum, also know as Amplats, said it quickly
resolved the dispute and by mid-morning all employees had reported
to work. But political tensions associated with the long-running
labor dispute continued to rise as South Africa's trade union
federation, Cosatu, singled out politicians it said were
opportunistically exploiting workers' problems that lie at the
heart of the violent unrest this year at some of the country's
mines.
The continuing mining unrest, and its broader political
implications, prompted ratings agency Fitch to warn of broader
structural problems in South Africa's society and economy that
could weigh down its credit rating in the future.
"The protests alone do not directly affect the sovereign rating,
but they do highlight structural problems that may weigh on it,"
the ratings company said. "In the longer term...failure to speed up
growth and sustain job creation will weaken South Africa's credit
fundamentals."
Strikes by workers demanding better pay and conditions at some
of South Africa's largest platinum mines have disrupted production
of the metal and provoked some of the worst violence seen in the
post-apartheid era.
During an illegal strike at Lonmin PLC's (LMI.LN) Marikana mine
last week, police shot and killed 34 workers in a crowd where many
were armed with machetes and spears. Earlier that week, fighting
among workers left 10 people dead, including two police
officers.
Cosatu said Friday that the blame for the violence lay with
"bogus breakaway 'unions' and their political and financial
backers," who are using intimidation and violence to try to divide
workers.
Rivalry between the well-established Cosatu-affiliated union
National Union of Mineworkers and the emerging Association of
Mineworkers and Construction Union also sparked violent illegal
strikes at Impala Platinum Holdings Ltd. (IMPUY) in February.
The disturbances, in particular the deaths, have pushed the
government and the companies to act as accusations fly over who and
exactly what was responsible for the unrest. There have also been
copycat wage demands at other mines in the region this week.
Amplats experienced its first disruption Friday, although the
company said it quickly held talks, which "concluded on a positive
note" with representatives of the 100 workers who refused to go
underground. "The [workers'] representatives have committed to
engage with management through the mine-based channels going
forward," it said in a statement.
Cosatu singled out Julius Malema, the expelled leader of the
ruling ANC's youth league, as an opportunist exploiting the
situation for political gain.
"Julius must stop. It's not helping anybody, fomenting divisions
in society because he's been expelled from the ANC," said Cosatu
President Sdumo Dlamini.
Malema, an opponent of South African President Jacob Zuma,
warned in a speech at a memorial for the dead Lonmin workers
Thursday that the country's mines should brace for a revolution
unless conditions improve.
A ministerial committee accused Mr. Malema of turning the
memorial into a political rally when he addressed the crowd.
The current situation in South Africa "over time could also
threaten social and political stability, damaging the investment
climate further," warned Fitch.
Write to Devon Maylie at devon.maylie@dowjones.com
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