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NORTHAM PLATINUM LIMITED - Zondereinde Mine Update 4

Release Date: 13/11/2013 13:33
Code(s): NHM     PDF:  
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Zondereinde Mine Update 4

NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1977/003282/06)
Share issuer code: NHM
Debt issuer code: NHMI
ISIN code: ZAE000030912
(“Northam” or “the company”)


Zondereinde mine update 4

The board of Northam has taken note of a memorandum delivered by the NUM to Zondereinde
management on Tuesday, 12 November 2013 requesting its involvement in the wage negotiation
process. The directors would like to clarify the respective roles and functions of the board and
management as follows:

    -   The board’s role is to provide management with a mandate in the wage negotiation process,
        not to get involved in the day to day management functions

    -   The board conscientiously considered all the relevant factors before having provided
        management with a wage negotiation mandate

    -   Executive management keeps the board updated at all times on developments at the
        negotiating table.

The company would like to reiterate that the union has not indicated any willingness to move from
its demand for basic wage increases of R2000 and R2100 per month for core and non-core
employees respectively, and a living out allowance of R3718. These demands equate to wage
increases of between 22% and 43% and an increase in the living out allowance of 69%. In addition to
the basic wage demands above, all the other demands would have the effect of increasing the
company’s wage bill by 61%.

Management has acted on the board’s mandate. The company has revised its offer three times.
Given the economic conditions in the platinum industry, the current offer is the maximum the
company can afford for the business to remain sustainable, and is at the top end of all other
settlements in the industry to date. Furthermore, the longer the mine stands, the less affordable the
offer becomes.

The NUM has continued to indicate its unwillingness to talk about percentage increases and its
preference to deal with the actual quantum. The company’s offer has been presented to the NUM in
both formats. For comparability purposes the company’s offer for a two year agreement is
presented in the tables below in both percentage and quantum terms:

___________________________________________________________________________________
2013 (inclusive of a 0.5% service increment)
___________________________________________________________________________________
Employees                                      Cat 2-8                     Cat 9-10
___________________________________________________________________________________
Non-core                                       8.0%                        7.5%

Core                                           9.0%                        8.0%

LOA and hostel allowance                       8.0%                        7.0%
___________________________________________________________________________________


___________________________________________________________________________________
2014* (inclusive of a 0.5% service increment)
___________________________________________________________________________________
Employees                                       Cat 2-8               Cat 9-10
___________________________________________________________________________________
Non-core                                        8.0%                  7.5%

Core                                            9.0%                  8.0%

LOA and hostel allowance                        8.0%                  7.0%
___________________________________________________________________________________
* For 2014 the higher of CPI+1 or the above


___________________________________________________________________________________
2013
___________________________________________________________________________________
Employees                                       Cat 2-8               Cat 9-10
___________________________________________________________________________________
Non-core                                        R500                  7.5%

Core                                            R600                  8.0%

LOA and hostel allowance                        R175                  7.0%
___________________________________________________________________________________

___________________________________________________________________________________
2014*
___________________________________________________________________________________
Employees                                       Cat 2-8               Cat 9-10
___________________________________________________________________________________
Non-core                                        R550                  7.5%

Core                                            R650                  8.0%

LOA and hostel allowance                        R190                  7.0%
___________________________________________________________________________________
*For 2014 the higher of CPI+1 or the above


A further meeting under the auspices of the CCMA has been scheduled for Friday, 15 November
2013.


Johannesburg
13 November 2013

Sponsor and Debt Sponsor
One Capital

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