Implats output at risk as workers refused bail

[miningmx.com] – IMPALA Platinum said there was a 50% chance
renewed industrial action at its Rustenburg Lease Area would continue until the end of
the week. Already, 3,000 ounces in platinum production has been lost and with the
night shift of May 22 not turning up for work either, the omens were that some 6,000
ounces in production could be lost if the strike entered a second day.

Implats human resources, executive Johan Theron, confirmed the night shift would be
affected by the stay way following a mass rally in the late afternoon.

The mine, which normally produces about half of Impala Platinum’s 2 million
ounces/year nameplate output, ceased mining activities this morning after rock drill
operators, thought to have affiliations to the Associated Mineworkers and Construction
Union (Amcu), failed to appear for work. Some of these employees then blocked
access roads and prevented other workers to reach work.

Then employees began a march to the Bafokeng Magistrates Court, which involves a
20km to 30km round-trip, where three Implats employees were to appear on charges
of attempted murder. This was after a non-fatal shooting incident on Monday and
follows violent clashes between workers, thought to be from rival unions, last week.

“They were hoping the arrested workers would be given bail, but the court refused it,”
said Theron. “The workers are to appear again on Friday and it’s not certain whether
employees will wait until then before returning to work,” he added.

Analysts said that Amcu’s presence on the mine was clearly a long-term situation. “I
see no other solution than Implats following Lonmin’s lead and granting Amcu some
organisational rights at the mine.

Lonmin said in April it would be providing limited organisational rights after Amcu had
requested recognition, a level of influence on the mine that the union was unable to
secure as it did not have enough support.

Implats told Miningmx last week that in order to be granted recognition, more than
half of the workforce had to be proven, signed up members.

Meanwhile, Implats has held back its quarterly production report until May 28 where it
is expected to confirm loss to production of some 120,000 oz. “The definitive loss is
still to be ascertained,” said another analyst. “I think they are just about back at
steady-state of production,” he said. “I suppose another production interruption would
at least be positive for the platinum market,” he added.

Delegates at Platinum Week in London last week had little words of comfort regarding
the platinum market which is expected to be in oversupply to the tune of 400,000 oz
to 480,000 oz in 2012.