To view the PDF file, sign up for a MySharenet subscription.

ANGLO AMERICAN PLC - Anglo American update re Anglo Platinum

Release Date: 12/11/2012 07:07
Code(s): AGL     PDF:  
Wrap Text
Anglo American update re Anglo Platinum

Anglo American plc (“the Company”)
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820 

News Release

12 November 2012
Anglo American update re. Anglo American Platinum

Anglo American plc draws attention to an announcement issued by Anglo American Platinum
Limited, the text of which is set out below:

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.

Sponsor: UBS South Africa (Pty) Ltd

Date: 12/11/2012 07:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story