Wrap Text
CCMA mediation process suspended indefinitely
ANGLO AMERICAN PLATINUM LIMITED
Incorporated in the Republic of South Africa
Registration number 1946/022452/06
Share code: AMS
ISIN: ZAE000013181
(“Anglo American Platinum” or “the Company”)
CCMA MEDIATION PROCESS SUSPENDED INDEFINITELY
Anglo American Platinum confirms that talks between the platinum sector and the Association
of Mineworkers and Construction Union (“AMCU”) that have been facilitated by the
Commission for Conciliation Mediation and Arbitration (“CCMA”) have been suspended
indefinitely to allow stakeholders time to reflect the current offer.
Anglo American Platinum notes the revised AMCU wage demand to achieve a R12, 500 basic
salary for the lowest paid workers over a period of four years. This revised wage demand
translates into an average annual increase of 29% and remains unaffordable. The Company
maintains that AMCU’s revised offer remains significantly above inflation and a further
increase is not sustainable.
Anglo American Platinum’s current offer takes into consideration the prevailing industry
conditions and the sustainability of the company. The offer is as follows:
- Year 1: 9.0% for A-level (the lowest paid employees), 8.5% for B-level and 7.5% for C-level
- Year 2: 8.0% for A-level, 7.5% for B-level and 7.0% for C-level
- Year 3: 7.5% for A-level, 7.5% for B-level and 7.0% for C-level
These increases are already significantly above the current 5.4% inflation rate. The Company
remains of the view that the current offer is fair and reasonable, and therefore encourages
AMCU to accept the offer.
Chris Griffith, CEO of Anglo American Platinum said “Anglo American Platinum is discouraged
by the turn of events at the CCMA. We have been diligent and transparent in engaging all our
stakeholders on the financial position of the Company, a position which led to the
restructuring of the business in 2013. At the CCMA, my team of specialists has been ensuring
that AMCU is apprised of what is achievable and sustainable to preserve jobs. We are hopeful
though that AMCU will come to recognize and appreciate the realities of the company’s
position and will work towards a solution that will benefit its members. We remain open to
further engagements to help bring the strike to an end.”
The industrial action at Anglo American Platinum’s Rustenburg, Union and Amandelbult
operations has entered into its seventh week, and the Company has lost approximately 4,000
platinum ounces of daily production, translating into R100million of revenue value per day. All
the Company’s Process operations, Mogalakwena mine and the majority of JV operations
continue to operate normally.
Anglo American Platinum remains in constant communication with all stakeholders to ensure
they remain fully informed of the situation. The situation on the ground is calm and the
Company continues to encourage all employees participating in the strike to respect their
fellow colleagues’ right to work.
Anglo American Platinum thanks all stakeholders involved in the facilitation of the wage
negotiations to date including the Government, the CCMA, and our fellow platinum
producers, for their efforts in trying to establish a sustainable solution for the industry.
For further information, please contact:
Media:
Mpumi Sithole
Tel: +27 (0)11 373 6246
mpumi.sithole@angloamerican.com
Investors:
Emma Chapman
Tel (UK): +44 (0)20 7968 8451
Tel (SA): +27 (0)11 373 6239
emma.chapman@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. Our portfolio of mining
businesses meets our customers’ changing needs and spans bulk commodities – iron ore and
manganese, metallurgical coal and thermal coal; base metals and minerals – copper, nickel,
niobium and phosphates; and precious metals and minerals – in which we are a global leader
in both platinum and diamonds. At Anglo American, we are committed to working together
with our stakeholders – our investors, our partners and our employees – to create sustainable
value that makes a real difference, while upholding the highest standards of safety and
responsibility across all our businesses and geographies. The company’s mining operations,
pipeline of growth projects and exploration activities span southern Africa, South America,
Australia, North America, Asia and Europe.
www.angloamerican.com
Johannesburg
5 March 2014
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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