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Anglo American Platinum Update
ANGLO AMERICAN PLATINUM LIMITED
Incorporated in the Republic of South Africa
Registration number 1946/022452/06
Share code: AMS
ISIN: ZAE000013181
ANGLO AMERICAN PLATINUM UPDATE
Anglo American Platinum Limited (“Anglo American Platinum” or “the
company”) is providing an update on the ongoing illegal industrial
action around its Rustenburg, Union and Amandelbult mining
operations. It is now eight weeks since the initial safety
suspension and the subsequent illegal industrial action by
employees.
Anglo American Platinum announced on 18 October 2012 that it had
entered into discussions with its recognised unions – NUM, UASA
and NUMSA – and the strike committee to explore options to
facilitate the return to work of employees involved in illegal
strike action. The status of the 12 000 dismissed Rustenburg
employees also formed part of these discussions, though they did
not include any wage negotiations.
As a result of these discussions, Anglo American Platinum
announced on 29 October 2012 its offer to facilitate the return to
work of the Union and Amandelbult employees and to reinstate all
the dismissed Rustenburg employees. The offer was strictly subject
to all striking employees returning to work and doing actual work
activities by no later than 30 October 2012.
The offer comprised a once off “hardship allowance” of R2 000 (net
of tax), in order to assist employees in dealing with financial
difficulties arising out of the ‘No Work, No Pay’ principle, and a
once off “loyalty allowance” of R 2 000 (net of tax) for those
employees who did not participate in the illegal strike. In
addition, all employees affected by the no-work, no-pay principle
would be afforded an opportunity to apply for a payment advance
of up to R 2 500 which would be repayable and deductible from
employees’ salaries over a six month period commencing in January
2013. The offer was not accepted by employees.
On 7 November 2012, management reopened discussions on the return
to work with the recognised unions and representatives of the
strike committee. The outcome of these discussions is that
management has revised the initial offer to a once off allowance
of R4 500 (gross of tax) to be paid to each qualifying employee,
comprising a R2 000 loyalty or hardship allowance and a R2 500
safe start-up allowance to be paid two weeks after employees have
returned to work and have commenced actual work.
Anglo American Platinum has further agreed to an early re-opening
of wage negotiations. Any agreement reached would, however, only
be implemented from 1 July 2013, in line with the current wage
negotiation cycle.
If the offer is accepted, the understanding is that employees
would return to work on Monday, 12 November 2012, after which date
the offer will lapse.
The company currently does not have sufficient employees at work
for safe operations in the affected areas and continues to carry
out essential services only. Anglo American Platinum confirms that
it is losing an average of 3,613 ounces of platinum production per
day and has lost a total of 167,681 ounces of platinum production
to date.
The CEO of Anglo American Platinum, Chris Griffith said, “We have
previously stated that the operations are under tremendous
economic pressure which is being exacerbated by the current
illegal strike. The return to work offer that has been agreed
with the unions and the strike committee will require almost R220
million to fund. The workers’ current demand of a salary increase
of R4500 per month would cost approximately R2.6 billion, an
amount that is clearly not affordable in a year when the company
is experiencing such economic challenges. We have gone to great
lengths to get our employees back to work and, should this offer
not be accepted, the company will have no other option but to
confirm the outcome of the disciplinary hearings for our employees
in Amandelbult and Union and effect the dismissals of the
Rustenburg employees.”
Further updates will be provided as appropriate.
For further information, please contact:
Media:
Mpumi Sithole
Tel: +27 (0)14 591 3741
mpumi.sithole@angloamerican.com
Investors:
Kgapu Mphahlele
+27 (0) 11 373 6239
kgapu.mphahlele@angloamerican.com
Notes to editors:
Anglo American Platinum Limited is a member of the Anglo American
plc Group and is the world’s leading primary producer of platinum
group metals. The company is listed on the Johannesburg Securities
Exchange (JSE). Its mining, smelting and refining operations are
based in South Africa. Elsewhere in the world, the Group owns Unki
Platinum Mine in Zimbabwe and is actively exploring in Brazil.
Anglo American Platinum has a number of joint ventures with
several historically disadvantaged South African consortia as part
of its commitment to the transformation of the mining industry.
Anglo American Platinum is committed to the highest standards of
safety and continues to make meaningful and sustainable difference
in the development of the communities around its operations.
www.angloamericanplatinum.com
Anglo American is one of the world’s largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg
stock exchanges. Anglo American’s portfolio of mining businesses
spans bulk commodities – iron ore and manganese, metallurgical
coal and thermal coal; base metals – copper and nickel; and
precious metals and minerals – in which it is a global leader in
both platinum and diamonds. Anglo American is committed to the
highest standards of safety and responsibility across all its
businesses and geographies and to making a sustainable difference
in the development of the communities around its operations. The
company’s mining operations, extensive pipeline of growth projects
and exploration activities span Southern Africa, South America,
Australia, North America, Asia and Europe. www.angloamerican.com
Johannesburg
9 November 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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