Operations resume at Eastplats mine

[miningmx.com] — EASTERN Platinum said on Tuesday operations had resumed at its Crocodile River mine and that it had reached a two-year wage agreement with the National Union of Mineworkers.

The news sent its share price soaring over 8% to R7.40 in Johannesburg, far outpacing a 1% gain on the broader All-Share Index.

The Toronto and Johannesburg-listed miner said in a statement that operations at the mine were “normalizing following the previously reported illegal `sit-in’ by 155 employees, and an illegal strike by a further 480 employees.”

It said there had been damage to underground infrastructure and that in the second quarter it would lose output of about 7,000 ounces of platinum group metals because of disruptions related to the industrial action.

“Following extensive negotiations with Num, a two-year wage agreement has been reached which provides for an effective cost to company increase of approximately 10% year-on-year commencing March 1, 2011,” it said without giving other details.