Amplats halts Rustenburg mines

[miningmx.com] — ANGLO AMERICAN PLATINUM (Amplats) has halted
work at all its Rustenburg operations, citing threats of violence against its employees.

The five mines affected were Khuseseleka, Bathopele, Thembelani, Khomanani as well
as Siphumelele. According to Anglo American spokesperson Pranill Ramchander, the
five shafts employed 26,000 workers and accounted for around 2,100 ounces in daily
production.

Based on Amplats’ interim figures to end-June, the five shafts also featured among
the group’s operations with the lowest margins.

CEO Chris Griffith said on Wednesday that the company’s workers were not on strike.

“In light of the current volatile situation in the Rustenburg area, where our employees,
who want to go to work, are being prevented from doing so and are
being intimidated by the threat of violence, Anglo American Platinum has decided to
suspend its operations in the Rustenburg area with immediate effect,’ said Griffith.

“The suspension will continue until such time as operations can be safely resumed.’

Anglo American CEO Cynthia Carroll said it was unacceptable that employees
were not able to go to work safely.

“We are in touch with the authorities at the highest level to identify how we can work
together with our tripartite partners – Government and the recognised labour unions –
to achieve a swift and peaceful resolution to these illegal actions.

“Our Rustenburg operations are already under considerable economic pressure and
the longer it is necessary to continue this suspension, the greater the risk to their
long-term viability.’

News agency Sapa reported on Wednesday that a large group of protesters,
carrying traditional weapons, gathered at Amplats’ Thembelani mine with police
keeping watch. Five police nyalas and a water cannon were also at the scene.

The agency quoted some protesters, who said that they were indeed Amplats
employees.

“If it were not for this industrial action, most of us would be deep inside shafts,
sweating for Anglo Platinum. Do not be tricked by them,’ said protester Themba
Ngaba.

“I am a rock driller for them. Among other things, workers are angered by the sub-
standard mageu (fermented mealie-meal energy drink) provided by the company.’

Another employee, Johannes Molefe, said he earned R5,900 per month and that
workers were demanding an increase to R12,500.

LONMIN IMPASSE

Lonmin, meanwhile, came no closer to solving its impasse with workers, reporting
attendance of 1.8% across all its shafts. The group confirmed that another body was
found close to its operations, bringing the number of dead since the onset of a strike
by rock drill operators on August 10 to 45.

Asked for how long the company would be willing to give its current strategy of
resolving the stand-off through a negotiated process a chance of success, Lonmin
spokesperson Sue Vey said it would remain committed to talks for now.

“The longer the company is out of production, the larger the impact on the business
and the greater the risk to future plans and jobs,’ Vey said. “We cannot speculate on
what may or may not happen in the future, but for now our focus is on getting back to
operational stability.’

Both Amplats and Lonmin closed down 4.05% on Wednesday at R417.50 and R77.14
respectively. Platinum was higher 1.74% at $1,636 per ounce.