0% Platmin operations grind to a halt
Ines Schumacher | Thu, 13 Aug 2009 11:43[miningmx.com] -- PRODUCTION at junior platinum miner Platmins flagship Pilanesburg mine has ground to a halt after an illegal strike action by a contractor. Platmin dismissed 500 employees of MCC Contracts without which the company cannot manage its open-cast mining activities at Pilanesburg. The dismissal follows strike action that is illegal under South African labour legislation, and the subsequent failure of the employees of MCC to return to work, Platmin said in a statement. "This is a dispute that has been bubbling under the surface for a while. The contractors have been wanting to join the National Union of Mineworkers (Num) for a while and labour got agitated that the process is taking so long," Platmin CEO Ian Watson told Miningmx. He said the protest had nothing to do with Platmin as such and there were no bad feelings between the contractors and management. Watson said Platmin was currently producing platinum from its stockpiles, but the situation will have an impact on its production. The company is working on resolving the dispute with MCC in order to recommence mining activities. "We are now facilitating the discussion between Num and MCC employees," Watson said. Platmin has recently entered into an agreement with Investec for a R400m borrowing facility over twelve months in which the mining firm has financed up to 88% of its metal deliveries from its Pilanesburg mine to Northam Platinum. Platmin and Northam have a toll-smelting agreement. The outcome is that Platmin's revenue from delivery of metals to Northam will be predicated on the basket price of platinum group metal and base metal prices at the time of delivery. In the current arrangement with Northam, the price is arrived at and paid only three to four months after delivery. The Investec arrangement means Platmin receives money for its metals deliveries sooner rather than later.
USER COMMENTS () Click to View
COMMENT
SHARE
E-MAIL
PRINT
Most Read
Commented
Ed's Choice
- »Imperial Crown Trading vies for part of Sishen
by Allan Seccombe | 18 Mar 2010 16:44 - »Kumba's play for Sishen hits a hurdle
by Allan Seccombe | 17 Mar 2010 16:39 - »ANC tentacles in Sishen mineral rights
by Jan de Lange | 18 Mar 2010 08:59 - »Eskom facing court on BHP Billiton deal
by Jan de Lange | 17 Mar 2010 20:58 - »Pallinghurst maps aggressive growth plans
by Allan Seccombe | 17 Mar 2010 15:27
- » Pallinghurst maps aggressive growth plans
by Allan Seccombe | 17 Mar 2010 15:27 - » ANC tentacles in Sishen mineral rights
by Jan de Lange | 18 Mar 2010 08:59 - » First Uranium shake up marks fund raising
by Allan Seccombe | 12 Mar 2010 14:51 - » South Africa slips to 4 in gold rankings
by Allan Seccombe | 12 Mar 2010 13:03 - » JSE probes ArcelorMittal conduct
by Jan de Lange | 09 Mar 2010 11:20
- » ETF threat hangs over gold
by Allan Seccombe | 08 Mar 2010 18:01 - » Imperial Crown Trading vies for part of Sishen
by Allan Seccombe | 18 Mar 2010 16:44 - » South Africa slips to 4 in gold rankings
by Allan Seccombe | 12 Mar 2010 13:03 - » Kumba's play for Sishen hits a hurdle
by Allan Seccombe | 17 Mar 2010 16:39 - » Big enough is no longer good enough
by David McKay | 07 Mar 2010 10:04
More news from Platinum Group Metals
Multimedia
LATEST PODCAST | Pallinghurst steps up its game
| 18 Mar 2010 -
More 
The MiningMX team delves deeper into the improved results of Gem Diamond and looks at Pallinghurst R ...
Listen
RADIO WRAP | More
First Uranium rescue plan good for Simmers too - Bernard Swanepoel |
Chamber's proposal gives an "almost bearable" alternative - Dick Kruger, CoM |
The MiningMX team delves deeper into the improved results of Gem Diamond and looks at Pallinghurst R ...
Listen 
Podcasts
RSS Feeds
Jobs
Events
JSE Listed stocksReal time resources data.
FREE News Alert! Subscribe to our News Alert