PETMIN LIMITED - Petmin Limited Successful conclusion of wage agreement

Petmin Limited – Successful conclusion of wage agreement

PETMIN LIMITED 
Incorporated in the Republic of South Africa 
Registration Number 1972/001062/06 
Share Code JSE: PET 
ISIN: ZAE000076014  
("Petmin" or "the Company") 

Petmin Limited - Successful conclusion of wage negotiations  

Petmin is pleased to announce that its subsidiary, Tendele Coal Mining (Pty) Ltd 
("Tendele"), has successfully concluded wage negotiations with the majority unions at its 
Somkhele Anthracite Mine.

A two-year wage agreement, effective from 1 July 2015, has been concluded with both 
AMCU and NUM and a three year agreement has been concluded with Solidarity.
Under the terms of the AMCU and NUM, a two year agreement has been reached, with a 
basic wage increase of 7.5% for 2015/2016 with a further increase of 7.5% for 2016/2017. 
This agreement  also improves medical benefits, housing allowance and other benefits for 
eligible employees from 1 July 2015, which together with the basic wage increase, results in 
an increase in Total Cost to Company ("TCTC") of 8.6% for 2015/16 and 6.5% for 2016/17.

The parties previously reached a deadlock at the CCMA and both Unions and Management 
opted for private mediation to break the deadlock.  

"The wage agreement provides much needed stability and certainty during very volatile times 
in the "commodities' world", and we thank both AMCU and NUM and the independent 
mediator, Mr. Fred Arendse (CEO of SSC Group) for the manner in which the negotiations 
were concluded", said Jan du Preez (Petmin's CEO).  

"NUM would like to thank all members of Somkhele Bargaining Forum and the independent 
facilitator for their contribution in the substantive agreement.  The conclusion of this 
agreement is a witness that if both management and organized labor negotiate in good faith 
there will always be a solution. We believe that this culture of prioritizing with our 
employees and respecting each other's responsibility will continue", said NUM's  
Lucky Mkhwanazi.

"Although it was really a tough process, we are happy with what we have accomplished in 
the wage negotiations process , and a special thanks to the  shop stewards, management and 
the independent facilitator and the employees for the faith they have in their trade unions", 
said AMCU' Glehn Mkhabela.

In addition to the agreement reached with both AMCU and NUM, a three-year wage 
agreement was agreed for miners, artisans and officials, represented by Solidarity. Under the 
terms of the three-year agreement, employees will receive a 6% increase in TCTC for 
2015/2016, a 6.5% increase in TCTC for 2016/2017 and a 7% increase in TCTC for 
2017/2018.

"We thank Solidarity, and look forward to working together with all employees to continue to 
improve productivity and contain costs in an extremely challenging environment", continued 
Du Preez.

Petmin recently announced a R350m Black Economic Empowerment (BEE) ownership 
scheme that will benefit the children of the approximately 175,000 people working for, and 
living around its Somkhele Anthracite Mine in KwaZulu-Natal. This deal gives workers and 
communities around Somkhele a 20% stake in Tendele. The mine produces about 1.2-million 
tonnes a year of premium priced anthracite for ferroalloy smelting, and about 350,000 tonnes 
of low-volatile energy coal from discards for export. The BEE deal requires shareholder 
approval and a Category 1 Circular to shareholders are in the process of being finalized.

Petmin Limited
Bradley Doig
+27 11 706 1644

Media
Jonathon Rees
+27 76 185 1827

Sponsor and Corporate Advisor
River Group
Andrew Lianos
+27 834 408 365

Johannesburg

6 August 2015



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