NUM to give talks a chance at BHP mines

[miningmx.com] – THE National Union of Mineworkers (NUM) said it would give negotiations a chance to solve a dispute at three coal mines owned by BHP Billiton Energy South Africa (Becsa) which suffered a three day strike last week.

IHS McCloskey Coal Report reported on November 25 that workers downed tools at the Klipspruit, Middelburg and Khutala collieries in Mpumalanga province. They supply coal to export and domestic markets, IHS McCloskey Coal Report said.

Acting spokesperson for the NUM, Livhuwani Mmamburuu, confirmed to Miningmx there had been industrial action. “Yes, there was no work from November 18 to 20 but workers returned to work on November 21.

“The dispute was about disciplinary procedures and resulted in the company agreeing to drop the procedures. But negotiations are continuing”.

Asked to comment on the prospect of renewed strike action, Mmamburuu said: “I think we should give negotiations a chance here. We will let the regions tackle the issue and get back to us on progress,” he said.

Said BHP Billiton in an e-mailed response to a Miningmx inquiry: “There was a strike action at BHP Billiton Energy Coal South Africa (BECSA)’s operations initiated by NUM from Monday 18 November and ended on 20 November 2013 with all NUM members returning to work.”

It is understood that the code and procedure is merely under review and that the issue has not been fully resolved, said IHS McCloskey Coal Report in its article.

Citing a European trader, the publication added: “If a major strike in South Africa is on the cards, it would send serious jitters around the market’.

Buyers have been absorbing South African tonnes in case Colombia’s Drummond is forced to stop exporting coal on January 1 next year, because it is set to miss a deadline to convert to direct loading operations, said IHS McCloskey Coal Report.

In the third quarter, Becsa’s operations produced a total of 7.94 million tonnes, which gives an average daily production rate of around 86,000 tonnes, the publication said.