[miningmx.com] – YET another South African mine has fallen to illegal
strike action, with Atlatsa Resources Corporation saying less than a fifth of workers
had turned up for work at its Bokoni Platinum Mines this morning (October 1).
Bokoni Platinum Mines, once known as Lebowa Platinum, is located in the north-
eastern section of the Bushveld complex. Based on current mining rates, it is set to
produce 150,000 oz of platinum group metals.
“The mine’s representative unions – NUM, TAWUSA and UASA – have tried to address
all of their members unsuccessfully,’ Atlatsa Resources said in an announcement to
the Johannesburg and Toronto stock exchanges.
Shares in Atlatsa Resources had fallen 4.5% on the Toronto Stock Exchange at the
time of writing.
Atlatsa said that it was seeking an interdict in the Labour Court on October 2. “The no
work, no pay principle will apply for as long as the unprotected industrial action
continues to take place,’ it said in its statement.
“Management continues to engage in constructive dialogue with employee
representatives, the authorities and other stakeholders with a view to maintaining
peace and resolving the industrial action,’ it said.
The strike, if extended, will heap further pressure on Anglo American Platinum
(Amplats), which is a joint venture partner in the company. Atlatsa Resources was
also in a delicate refinancing negotiation with Amplats.
Atlatsa Resources said last week that the first phase of a refinancing for the heavily-
indebted had been completed, which would see it significantly lower the cost of
borrowing for the company.
Reporting quarterly results to end-June in August, Atlatsa said the ramp-up of its
Bokoni mine has made sound progress, recording quarter-on-quarter increases of 6%
in primary development, 28% in square metres broken, 19% in tonnes milled and
23% (to 34,098 ounces) in platinum group metals production.
As a result of the increase in production, unit costs reduced by 17% (to R10,285 per
PGM ounce), while its operating loss more than halved by 52% to C$4.7m.
This translated into a negative operating margin of 12%, a significant improvement
from the first quarter’s 29%.
However, the interest charge on the company’s debt of $413m amounted to $12.4m,
causing the company’s quarterly loss to plummet to $21.1m.
Joel Kesler, Atlatsa’s executive for corporate development, told Miningmx in August
that the company was close to break-even on an operating level, despite the fact that
an interest charge would continue to drag the group into negative territory for as long
as the restructuring strategy remained unimplemented.
