[miningmx.com] – THE incendiary nature of South Africa’s fast-changing mine union industry exploded again at Anglo American Platinum (Amplats) after employees were shot with rubber bullets by a security force. There were no fatalities.
However, the event stripped some R5bn off the platinum counter’s value, contributed to a 0.55% decline in the rand/dollar exchange rate, and threw into relief the sensitive nature of Amplats’ proposed restructuring, currently the subject of a consultative process with the Departments of Labour and Mineral Resources (DMR), as well as unions.
“Further deaths of union members is the last thing Amplats needs added to its plate and is politically very difficult given the ongoing commission into the Marikana deaths and will not help Amplats in its dealings with an increasingly emboldened government on issues around mine rights, mine tax etc,” said Peter Attard Montalto, an analyst for Nomura Securities.
“Unfortunately the mine story is going to keep developing through this year as Amplats and others move forwards with downscaling and job losses and the government find itself in an increasingly difficult political bind on the issue,” he said.
The mine violence, first reported by television news service, ENCA, was clarified by Amplats in a statement issued around 5.30pm in which it said that the incident occured at its Siphumelele mine in the Rustenburg area and involved the Workers Committee and shop stewards of the National Union of Mineworkers (NUM).
Siphumelele is not one of the mining sections identified for closure in terms of Amplats’ proposal to cut about 400,000 ounces/year of platinum-producing capacity in a move that will affect up to 14,000 jobs.
“Workers committee members are contesting NUM’s legitimacy at the mine and demanding that NUM vacate its offices,” Amplats spokesperson, Mpumi Sithole said in an e-mailed statement.
“The company is currently in the process of validating union membership at Rustenburg and the mines north of the Pilanesburg,” she added.
“A total of nine employees were injured when rubber bullets were fired by Anglo American Platinum security personnel,” Amplats said, although the number of injured
had increased to at least 13 people, according to BDLive which cited police sources. It said that the injured included four security guards who were hacked by machetes.
“As they were attempting to evacuate the NUM shop stewards who were trapped in their offices, three security personnel sustained minor injuries during this incident,” Sithole said in the statement.
Impala Platinum said last week that it had de-recognised the NUM at its Lease Area mine, also in Rustenburg and was going through a process of establishing a new labour dispensation where more than one union is recognised.
The NUM, however, has called upon the DMR to establish an independent body to validate Implats’ data while also calling for a review of Implats’ mining permit echoing the heavily criticised directive given by mines minister, Susan Shabangu when she learned of Amplats’ restructuring plans.
It will be interesting to see how the South African government responds to this latest setback for union peace after president Jacob Zuma declared in his State Of The Nation Address to parliament last week that public protests would no longer be tolerated.
