Northam Platinum: Cost of strike by 7 000 estimated at R500m

Northam Platinum expected to lose R500 million to a strike by more than 7 000 employees and talks to end the walk-out would resume only next year, it said on Friday. The mid-tier platinum producer said in a statement that the six-week strike by the National Union of Mineworkers (NUM) had cost employees R74m in lost wages. Prospects for a resolution next month have been raised by NUM’s two-year wage agreement last week with Anglo American Platinum that will see rises of 7.5 percent to 8.5 percent, roughly in line with Northam’s offer and above the inflation rate of 5.3 percent. The company said its latest offer was “final”. NUM’s demands include a 16 percent wage rise and an almost 70 percent increase in the “living-out allowance” provided to miners who opt to not live in accommodation provided on mine property. Platinum producers are grappling with low prices, soaring costs and labour unrest as prices are depressed by sluggish demand. – Reuters