DRDGOLD: 433 +33 (+8.25%)
AMCU plans to extend Sibanye gold strike to other S.African miners
* AMCU extends Sibanye gold strike to platinum
* AngloGold, Lonmin, Harmony, Amplats served union strike
* Lonmin shares down
(Adds other firms, Sibanye comment, detail)
By Tanisha Heiberg and Zandi Shabalala
JOHANNESBURG/LONDON Feb 21 (Reuters) - Workers led by South
Africa's Association of Mineworkers and Construction Union
(AMCU) plan to down tools at gold and platinum mines next week
in support of colleagues at Sibanye-Stillwater who are
striking over wages and job cuts.
AngloGold Ashanti, Harmony Gold, Anglo
American Platinum Lonmin, Village Main Reef
and DRDGold have received notices of the strike action,
which is expected to begin on Feb. 28 and last until March 7,
industry body, the Minerals Council, said on Thursday.
Sibanye-Stillwater last week said it could cut nearly 6,000
jobs at its gold mining operations, where AMCU has been on
strike since mid-November over a wage dispute.
AMCU reached wage agreements with AngloGold, Harmony Gold
and Village Main Reef last year.
South Africa is home to the world's biggest platinum group
metals deposits and accounts for just over 90 percent of global
Lonmin's South African listed shares fell 8.29
percent, while its London-listed shares slipped 6 percent by
1215 GMT after it said it had received a strike notice.
The miner said it was in the process of obtaining legal
advice on AMCU's notice.
Lonmin, which is in the process of being bought by Sibanye,
has been crippled by soaring costs and subdued platinum prices.
The firm has been cutting spending to conserve cash and
retain a positive cash balance, one of the conditions upon which
Sibanye's takeover is contingent.
"Any disruption is obviously bad news. The deal with Sibanye
hasn't been finalised yet and Sibanye wants Lonmin to be in a
cash positive position so obviously if there is a prolonged
strike this could affect things," said Yuen Low, mining analyst
at Shore Capital.
Workers led by the AMCU also plan to extend their strike at
Sibanye-Stillwater's gold shafts to its platinum mines next
week, the company said on Thursday.
"We have strike plans. It's not going to change our view,"
said Sibanye chief executive Neal Froneman.
AMCU said in a strike notice document seen by Reuters that
it intends to strike at Sibanye's platinum operations for the
duration of the protected strike at its gold mines and until the
dispute is resolved.
Sibanye's full-year loss, hit by multiple disruptions at its
South African gold operations and a deferred tax charge, was
limited by the strong performance of the company's U.S. and
South African platinum group metals (PGM) operations, the firm
said during its results on Thursday.
(Reporting by Tanisha Heiberg in Johannesburg and Zandi
Shabalala in London; editing by Jason Neely and David Evans)
First Published: 2019-02-21 12:41:20
Updated 2019-02-21 14:57:22
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